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.

Section 67

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.

Application date

The amendment applies from 1 April 2012.