Transitional provisions for determining due date for purposes of imposing late payment interest
2012 transitional provisions for Student Loans determines the due date for purposes of imposing late payment interest.
Schedule 7, clause 4A
The Student Loan Scheme Act 2011 changes the way late payment interest is imposed from 1 April 2013. However, payments for the 2012-13 tax year (interim payments, remaining repayments, and instalments of overseas-based borrower repayment obligations) could occur both before and after 1 April 2013. Having different late payment interest rules for repayment obligations that relate to the same tax year, depending on when the payment is due, could cause confusion and be difficult for borrowers to understand and comply with.
To ensure that borrowers are not disadvantaged, the late payment interest rules for the 2012-13 tax year clarify that late payment interest imposed for late payment of interim payments, remaining repayments, and instalments of overseas-based borrower repayment obligations apply from the final instalment date onwards. That is, the old rules will continue to apply during the transitional year.
The amendment applies from 1 April 2013.