Meaning of "excess repayments"
2012 amendment to the Student Loan Act covering the excess repayment rules, repayment obligations, and calculating excess repayments.
Section 119(2) and (3)
An amendment has been made to the excess repayment rules to correct an error in the legislation that determines repayment obligations for purposes of calculating excess repayments and the excess repayment bonus.
The excess repayment legislation incorrectly refers to repayment obligations from salary and wages being what should have been deducted not what was actually deducted. The result is that if a borrower has an under-deduction, whether significant or not, they will not have met their repayment obligation in relation to their salary and wage income and their bonus entitlement will be reduced or cancelled. This was not the policy intent.
Any repayment deductions made from salary and wages should satisfy a borrower's repayment obligation. If there is a significant under-deduction, there are other mechanisms available for collection. The legislation has been amended to provide this outcome.
The amendment applies from 1 April 2012.