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Transitional rule for interim payments

New clause

Submission

(Matter raised by officials)

Borrowers with other income or pre-taxed income (for example, interest and dividends) are required to make interim payments during the year if their repayment obligation for the previous year is $1,000 or more. However, in the 2012–13 tax year the borrower’s previous year’s student loan repayment obligation will have been determined under the Student Loan Scheme Act 1992, using different terminology. For example, the current Act refers to “residual repayment obligations” rather than “other income repayment obligations” in the bill.

To allow a smooth transition for borrowers from the 1992 Act to the bill, officials recommend that for the 2012–13 tax year, the bill be amended to provide that borrowers be required to make interim repayments if they meet the qualifying criteria under the terminology used in the Student Loan Scheme Act 1992.

Recommendation

That the submission be accepted