Announcements
PUBLISHED 16 December 2009

No change to student loan repayment threshold

The income threshold at which New Zealand-based borrowers must begin repaying their student loans will remain at the current level of $19,084 for the 2010–11 tax year. The rate is reviewed each year. For more information see the government's media statement.


Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

Dunne: Student loan repayment threshold remains same

The income threshold at which New Zealand-based borrowers must begin repaying their student loans will remain at $19,084 for the 2010-11 tax year, Revenue Minister Peter Dunne announced today.

The threshold is reviewed annually and in previous years has generally been adjusted according to the September consumer price index.

"The decision to hold the student loan repayment threshold at the current level for the 2010-11 tax year takes into account the current economic climate and the very significant cost of this $9.6 billion asset to the Crown," Mr Dunne said.

"While the impact on individual borrowers is likely to be minimal, the effect of maintaining the current repayment threshold is expected to lower the overall costs of the scheme to the Crown and is the right decision for the times," Mr Dunne said.

The threshold will be reviewed again for the 2011-12 tax year.

Mark Stewart - Press Secretary, Office of Hon Peter Dunne
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