Students sometimes earn more than the weekly, fortnightly, four-weekly or monthly threshold amount, but less than the annual threshold amount. This might happen if you work over the study break or holidays and earn more than the weekly threshold but stop working before you reach the annual threshold.
You usually need to make student loan repayments in any pay periods you earn over the threshold. A repayment deduction exemption will let you off making these repayments.
Applying for a repayment deduction exemption
You can apply for a repayment deduction exemption if you're a New Zealand-based borrower and:
- are studying full-time, or about to start studying
- will reasonably expect to earn under the annual repayment threshold.
You can apply for a repayment deduction exemption in myIR.
The exemption runs from the day you apply until the end of the tax year (31 March). If you're going to keep studying after 31 March you can apply for a new exemption.
If you continue your study programme in the next semester, the exemption will cover:
- breaks between semesters
- the summer break.
If your situation changes, your repayment deduction exemption may change. Contact us to make sure you keep receiving the right entitlements and avoid any penalties.