Changes to student Loan, KiwiSaver and Working-for-Families scheme are likely to affect thousands of New Zealanders on 1 April.
A number of these changes take effect from 1 April 2012 for student loan borrowers, KiwiSaver members and people receiving Working for Families Tax Credits.
The changes to student loans are designed to reduce the possibility of borrowers defaulting on their loans, and help address the overall size of student loan debt, says Inland Revenue Acting Customer Services Manager, Denis McDermott.
“Borrowers will get a more up to date balance for their loan, and will see changes around the length of repayment holidays if they go overseas, late payment penalties and some other aspects of the scheme.
“If you’re earning salary or wages you must add “SL” to your tax code and make repayments when you earn more than the pay period repayment threshold of $367 a week.
“If you want to pay off your loan faster, you can make extra repayments. You can pay Inland Revenue directly or ask your employer to make extra deductions.”
McDermott says KiwiSaver members will also see changes from April.
“The employer contribution will be taxed and the members’ tax credit also changes for the year ending June 2012 onwards, up to a maximum of $521 a year.”
Changes to abatement rates for Working for Families Tax Credits also take effect in April.
People can find out more about the changes to Student Loans, KiwiSaver and Working for Families Tax Credits at www.ird.govt.nz.