Student Loan Scheme Amendment Act 2014

1: Title
This Act is the Student Loan Scheme Amendment Act 2014.
2: Commencement
1: Section 4
2: Section 6
3: Section 7
4: This rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act
This Act amends the Student Loan Scheme Act 2011 principal Act 2014-03-08 Student Loan Scheme Act 2011 re: section 2(1) —section 4 deemed to have come into force on 1 April 2012. Section 2(3): section 7 deemed to have come into force on 1 April 2013. Section 2(4): rest of this Act comes into force on the day after the date on which it receives the Royal assent.
1: Amendments to Student Loan Scheme Act 2011
4: Section 4 amended (Interpretation)
In section 4(1) borrower deduction borrower deduction
a: a deduction from a borrower's salary or wages in accordance with section 39:
b: the amount of a standard deduction that exceeds the borrower's loan balance .
5: Section 84 amended (Due dates for payment of interim payments)
In section 84(2)(d) 2012–2013 tax year or any subsequent tax year
6: Section 110 replaced (Repayment obligations of overseas-based borrowers)
Replace section 110
110: Repayment obligations of overseas-based borrowers
1: This section applies to an overseas-based borrower who—
a: is not or is no longer entitled to a repayment holiday under section 107B or 108A(2); and
b: has not had his or her overseas-based repayment obligation reassessed under section 115A.
2: The borrower's repayment obligation for every full tax year during which this section applies to the borrower is—
a: $1,000, if the relevant loan balance is less than or equal to $15,000:
b: $2,000, if the relevant loan balance is more than $15,000 but less than or equal to $30,000:
c: $3,000, if the relevant loan balance is more than $30,000 but less than or equal to $45,000:
d: $4,000, if the relevant loan balance is more than $45,000 but less than or equal to $60,000:
e: $5,000, if the relevant loan balance is more than $60,000.
3: The borrower's repayment obligation for any portion of a tax year (being less than a full tax year) during which this section applies to the borrower must be calculated in accordance with the following formula: x × y 365 where— x is the number of days in the tax year during which this section applies to the borrower y is the amount that would apply under subsection (2) if this section applied to the borrower for the full tax year.
4: In this section— existing borrower relevant loan balance start date
a: for an existing borrower, 31 March 2014:
b: for any other borrower, the day when the borrower becomes overseas-based. 1992 No 141 s 34 . 2014-04-01 Student Loan Scheme Act 2011 Re section 2(2): Section 6 comes into force on 1 April 2014.
7: New section 141A inserted (Late payment interest reduced if deduction or extraction notice applies)
After section 141
141A: Late payment interest reduced if deduction or extraction notice applies
1: This section applies if—
a: a borrower is liable to pay late payment interest on an unpaid amount under section 139; and
b: the Commissioner has exercised powers available under section 157 of the Tax Administration Act 1994 to require any person to deduct or extract any amount from any moneys payable by that person to the borrower.
2: For a month during which any unpaid amount remains unpaid and the Commissioner has received tax withheld or deducted in accordance with the requirements of a notice issued under section 157 of the Tax Administration Act 1994 (a deduction or extraction notice
3: However, subsection (2) applies only to the days in a month during which a deduction or extraction notice is in effect.
8: New sections 162A and 162B inserted
After section 162
162A: Offence for default of overseas-based repayment obligation
1: Every person commits an offence who is in default of his or her overseas-based repayment obligation and who, having been notified by the Commissioner that he or she is in default, knowingly fails, or refuses, by the due date specified in the notification to make reasonable efforts to pay the amount in default or to make arrangements with the Inland Revenue Department to pay the amount in default.
2: Every person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $2,000. 1994 No 166 ss 143A, 143B
162B: Arrest of liable person
1: A District Court Judge or, if a District Court Judge is not available and the case appears to be urgent, a Registrar may, on an application in writing by the Commissioner, issue a warrant for the arrest of a person (the liable person section 162A
2: The liable person must be brought as soon as possible before a District Court, which, if it is satisfied that the person is about to leave or attempt to leave New Zealand without making reasonable efforts to pay the amount in default or without making arrangements with the Inland Revenue Department to pay the amount in default, may order that the liable person—
a: pay the amount in default:
b: make arrangements with the Inland Revenue Department to pay the amount in default:
c: give such security (including the provision of sureties) for the payment of that liability as the court specifies:
d: not leave New Zealand without the written permission of the court:
e: surrender to the court, for such period as the court specifies, any travel documents or tickets in the person's possession:
f: provide the court, within such period as the court specifies, with any information the court thinks appropriate.
3: To avoid doubt, the court may make an order under subsection (2) even if the Commissioner is able to recover the debt by other means.
4: On making an order under subsection (2)(d) or (e), the court may direct the Registrar to give notice of the order to such departments of State, offices, or persons as the court or the Registrar thinks appropriate.
5: Every person commits an offence and is liable on conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding $2,000 who—
a: is a person against whom an order is in force under subsection (2)(d) or (e); and
b: is in default of his or her overseas-based repayment obligation; and
c: either—
i: leaves New Zealand; or
ii: attempts, or does any act with the intent, to leave New Zealand.
6: A person against whom an order under subsection (2) is in force may apply to the court for the discharge of the order, and the court may, if it considers it just or appropriate, discharge the order accordingly.
7: If the court discharges an order made under subsection (2)(e), it must direct the return of any travel documents or tickets surrendered pursuant to the order (unless the court grants a new order under subsection (2)(e) in relation to the same documents). 1991 No 142 s 199 .
9: Sections 164 to 166 amended
In sections 164 165 166 section 163 section 162A or 163
10: Section 193A amended (Contact person may be requested to assist)
In section 193A(3) In subsection (2), In this section and section 193C,
11: Section 193C amended (Changes relating to contact details of borrower)
In section 193C
2: For the purpose of verifying the borrower's address details, the Commissioner may receive the borrower's address details from any other person if the information is shared in accordance with any other provision of this Act or any other enactment.
12: Section 207 amended (Disclosure of information between authorised persons)
After section 207(1)(b)
ba: an authorised person from disclosing to another authorised person any information for the purpose of verifying any declaration made by an applicant for a student loan as to any unpaid amounts owed by the applicant where the declaration is a condition of obtaining the loan; or .
2: Amendments to Student Loan Scheme Amendment Act 2013
13: Amendments to Student Loan Scheme Amendment Act 2013
This Part amends the Student Loan Scheme Amendment Act 2013 2014-03-08 Student Loan Scheme Amendment Act 2013
14: Schedule 3, new Schedule 3, clause 8 replaced
In Schedule 3
8: Borrowers who are shareholders in close companies
1: This clause applies to a borrower who is a major shareholder in a close company on the last day of the company’s income year.
2: The borrower's adjusted net income for the income year includes an amount calculated using the following formula, if the amount is greater than zero,— a × (b – c) where— a is the voting interest (in percentage) in the company held by the borrower on the last day of the company's income year b is the net income of the company for the company's income year c is the total dividends paid by the company for the company's income year.
15: Schedule 3, new Schedule 3, clause 11 amended
1: In Schedule 3 (a + b – c) ÷ d (a + b) ÷ d
2: In Schedule 3
b: is the greater of zero and the total of amounts calculated in accordance with subclause (4) for each company in which the trustee of the borrower's trust and associated persons hold voting interests of 50% or more on the last day of the company’s income year .
3: In Schedule 3
4: In Schedule 3 borrower's trust who are alive at any time in the income year
5: In Schedule 3
4: The amount referred to in item b of the formula in subclause (3) is to be calculated for each company using the following formula: x × (y – z) where— x is the total of the voting interests (in percentage) held by the trustee on the last day of the company’s income year y is the net income of the company for the company's income year z is the total dividends paid by the company for the company's income year.
16: Schedule 3, new Schedule 3, clause 12 amended
In Schedule 3
a: a borrower is an employee of a company in which the borrower and associated persons hold voting interests of 50% or more on the last day of the income year; and .
17: Schedule 3, new Schedule 3, new clause 12A inserted
In Schedule 3
12A: Income from employment benefits
1: This clause applies to a borrower to whom clause 12 does not apply if the borrower's employer makes a motor vehicle or a short term charge facility available to the borrower in the income year.
2: If the borrower's employer makes a motor vehicle available for the borrower’s private use (the benefit
3: If the borrower's employer makes any short term charge facility available to the borrower (the facility
18: Schedule 3, new Schedule 3, clause 13 amended
In Schedule 3
d: a company in which a trustee referred to in paragraph (c) and associated persons hold a voting interest of 50% or more on the last day of the income year.