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You can sometimes pay more than you need to on your student loan. This can happen if too much is deducted from your salary or wages, or if you have a deduction exemption but your employer accidentally makes deductions anyway. When this happens we call it a significant over-deduction. The threshold for significant over-deductions is $60 a month.

Use our PAYE/KiwiSaver deductions calculator to check if you’ve had the right amount deducted from your income.

You can pay too much in repayments if either:

  • your employer did not deduct the right amount
  • you did not use the right tax code for your job. 

We will not be able to refund any overpayment caused by you using the wrong tax code. If your employer deducts the right amount according to your tax code, it's considered a 'full and final deduction' even if it's too high for your overall income.

If your deductions are more than they should be, talk to your employer. Check you are using the right tax code. If you need to change your tax code, give your employer a new Tax code declaration - IR330. Make sure you include the 'SL'.

Work out my tax code


Contact us and we will check:

  • the amount you overpaid is significant
  • you have no overdue amounts owing (arrears).

You will then have 6 months to ask us to either:

  • give you a refund
  • leave it on your loan account
  • pay another student loan obligation.

Setting up a preference in myIR

You can choose what happens with your over deductions in myIR:

  • keep them on your loan
  • offset them to pay off a debt on another account
  • transfer them to your KiwiSaver. 

You can find Overpayment settings on the right hand side of the Summary page in myIR. The options will default to going towards your student loan but other options will be available to choose from. There is also an option for the overpayment to be refunded.

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PAYE deductions from salary or wages calculator

Employers and employees can work out how much PAYE should be withheld from wages.

Go to this tool