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If you earn any income other than salary and wages, you may need to make your own student loan repayments. The size of your repayments depends on your total salary and wage income and adjusted net income.

Adjusted net income

Adjusted net income is any income you earn that is not salary or wages, minus any expenses. Losses are not included in your adjusted net income.

Adjusted net income includes income from:

  • self-employment and contracting work
  • withholding tax income
  • trust income
  • interest, dividends and Māori authority distributions
  • shareholder salary
  • casual agricultural and election day work
  • rental properties
  • overseas income and investments
  • partnership income
  • directors' salary
  • selling property - if the sale is considered taxable.

Buying and selling residential property

If you have any of the above income sources, you will need to file an income tax return at the end of the tax year.

Adjusted net income also includes other sources of income that may not need to be declared on an income tax return.

You will need to file an Adjust your income – IR215 form if you receive any of these other sources of income.

Adjust your income for Working for Families and student loans

End-of-year repayments on adjusted net income

The standard end-of-year repayment is 12% for every dollar you earn over the annual repayment threshold.

If you have adjusted net income you will only have an end-of-year repayment obligation if your:

  • adjusted net income is $500 or more
  • total income (adjusted net income plus any salary or wage income) is over the annual repayment threshold.

For the tax year ending 31 March 2021 the annual repayment threshold is $20,020.

For the tax year ending 31 March 2022 the annual repayment threshold is $20,280.

We will send you a notice that tells you what your loan payments are, and details of any interim payments you need to make towards next year's assessment.

Repay my student loan when I am self employed or earn other income

Interim payments

If your end-of-year repayment obligation is $1,000 or more, you will need to make interim payments in the next tax year.

The purpose of the interim payments is to allow you to make student loan repayments during the year instead of only as a lump sum at the end. This makes repaying your student loan more manageable. The interim payments you make will go towards reducing your end of year obligation.

Your interim assessment for the year is your previous year’s repayment obligation plus 5%. If you have not filed the previous year’s return by the time the interim payment is due, then your interim assessment will be based on the repayment obligation in the year prior to the previous year, plus 10%.

Most people's interim payment dates will be 28 August, 15 January and 7 May, with any residual obligation due on 7 February the following year. If your income year does not end on 31 March, call us to find out when your payments are due.

You can also make voluntary student loan payments at any time. This will also reduce the amount you need to pay at the end of the year.

Reducing your interim payments

The amount of your interim payments is based on your previous year's income. The more you earn, the bigger the interim payments will be. If we tell you what your interim payments will be, but you think your income is going to be less than the year before, you can ask us to reduce the interim payments.

To do this, you must estimate what your total adjusted net income will be for the year. This needs to be based on what you expect to earn, including other income types and adjustments. If you expect to earn any income from salary or wages you'll also need to estimate this.

If your expected annual income changes after making an estimation, you can re-estimate your interim assessment as many times as you need to up to your final interim payment date.

It is important to make sure your estimate is accurate. If your estimate is less than what you need to pay, we may charge you a penalty.

You can estimate your interim assessment via myIR. You will need to:

  • Select Student loan account
  • Select More under I want to
  • Select Estimate interim assessment
  • Enter the required details and click Submit.

Login to myIR

Last updated: 05 May 2021
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