If you earn salary or wages and have a student loan, use the SL repayment code with your tax code. It's important to use the tax code that's right for you. This lets your employer know how much to deduct for your student loan repayments.
The exemption starts from the day you apply until the end of the tax year (31 March). As long as you continue your study programme in the next semester, the exemption will cover:
breaks between semesters, and
the Christmas break.
If you're going to continue to study after 31 March you must apply for a new exemption. Your employer will start making standard deductions when your exemption no longer applies.
Let us know if your situation changes during the year. We may need to change or stop your repayment deduction exemption.
Student loan special deduction rate
You can apply for a special deduction rate to reduce your student loan repayments if you:
have more than one job (including an income-tested benefit, student allowance and New Zealand Superannuation)
use the SB SL or S SL tax code for your secondary job(s), and
earn less than the repayment threshold from your main job.
Special deduction rates start from the day you apply until the end of the "quarter". You must apply for a new rate each quarter. Apply before a quarter starts to make sure you get the rate for the full quarter. For each quarter you'll need to:
estimate your total earnings from your main and secondary job(s), and
tell us your pay period frequency for each job.
The table below shows the special deduction rate quarters.
If you haven't paid enough towards your student loan
Sometimes the right repayments aren't deducted from your salary or wages. This can happen in situations where:
your employer hasn't deducted the right amount, or
you didn't use SL when you should have.
When this happens we call it a significant under-deduction. If this happens we'll get you to repay it through your salary or wage. We'll let you know if this happens and send your employer a student loan extra deduction notice.
Student loan extra deductions can be made at a rate of up to 41.67% of your standard deduction amount. For example, if your standard deduction is $72 your extra deduction could be $30 ($72 x 0.4167 = $30).
Extra student loan deductions continue until the significant under-deduction amount is paid in full. The extra deductions are in addition to the standard repayment obligations you have.
If you think your deductions are wrong check with your employer first as you may be using the wrong tax code. If you need to change your tax code give your employer a new Tax code declaration (IR330) with the right tax code including SL.
If you've paid too much towards your student loan
If you've paid too much we call this a significant over-deduction. The threshold for significant over-deductions is $60 per month.
If you find that your deductions are more than you needed to pay, talk to your employer (they'll need to correct any future deductions) and contact us.
If we confirm the amount is significant and you have no unpaid amounts owing, you may be able to:
have this refunded
leave it on your loan account, or
pay another student loan obligation you have with us.
You'll need to contact us within six months of receiving our confirmation if you want to do this.