Part-year assessments

Section 14 of the Student Loan Scheme Act 1992

Borrowers' repayment obligations are aligned to their entitlement to an interest-free loan. Those entitled to an interest-free loan are assessed on an income-contingent basis, and those not entitled are assessed on the basis of the amount of their loan (subject to entitlement to the three-year repayment holiday available to overseas-based borrowers). Some borrowers may retain their residency for income tax purposes, which means that they must include their world-wide income in their tax return, but they will lose their entitlement to an interest-free loan if they are out of New Zealand for 184 or more days. This amendment aligns the assessment basis with the period of entitlement to an interest-free loan.

Application date

The amendment applies from the day after Royal assent - 7 March 2010.