Student Loan Scheme Amendment Act 2007: Small balances
Small balances
Sections 51, 51A and 60 of the Student Loan Scheme Act 1992
The small balance thresholds have been increased to $20 and a new provision has been introduced which allows Inland Revenue to refrain from collecting all or part of an overdue repayment obligation that is less than $333.
Background
The small balance thresholds allow the Commissioner to write-off amounts which it is uneconomical to pursue. They had not previously been increased since the student loan scheme was introduced.
Key features
The amount that may be written off for underpaid borrowers' end-of-year repayment obligations, employer repayment deductions and final loan balances has been increased to $20.
A further change is a new provision which allows Inland Revenue to refrain from collecting all or part of an overdue repayment obligation that is less than $333. Any amount which is not collected will not be written off and remains subject to interest.
Application date
The increase in the amounts which may be written off will apply from 1 October 2007. The provision relating to amounts which Inland Revenue may refrain from collecting came into force on 28 March 2007.
Other sections in this legislation
| Information matching | Access to Customs' arrival and departure | Extending the amnesty | Simplifying the law | New repayment rules | Interest-free loans for borrowers overseas | Removal of interest write-offs | Exemptions for volunteers | Late payment penalties | Small balances | Applications in writing | Hardship relief | Care and management | Interest write-offs validated | Interest rate formula | Other technical amendments |
Date published: 31 May 2007
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