2007 amendment increases small balance thresholds to $20 and allows IR to refrain from collecting all/part of an overdue repayment obligation less than $333.

Sections 51, 51A and 60 of the Student Loan Scheme Act 1992

The small balance thresholds have been increased to $20 and a new provision has been introduced which allows Inland Revenue to refrain from collecting all or part of an overdue repayment obligation that is less than $333.

Background

The small balance thresholds allow the Commissioner to write-off amounts which it is uneconomical to pursue. They had not previously been increased since the student loan scheme was introduced.

Key features

The amount that may be written off for underpaid borrowers' end-of-year repayment obligations, employer repayment deductions and final loan balances has been increased to $20.

A further change is a new provision which allows Inland Revenue to refrain from collecting all or part of an overdue repayment obligation that is less than $333. Any amount which is not collected will not be written off and remains subject to interest.

Application date

The increase in the amounts which may be written off will apply from 1 October 2007. The provision relating to amounts which Inland Revenue may refrain from collecting came into force on 28 March 2007.