Offsetting a significant over-deduction against unpaid amounts
2012 amendment to the Student Loan Act allows the CIR to offset a borrower's significant over-deduction against a significant under-deduction or unpaid amount.
When a borrower has both a significant over-deduction for one period and either a significant under-deduction for another period or an unpaid amount, the Commissioner will be able to offset a borrower's significant over-deduction against the significant under-deduction or unpaid amount.
This change ensures that borrowers do not receive a refund of their significant over-deduction while still owing amounts to Inland Revenue.
The amendment applies from 1 April 2012.