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Students sometimes earn more than the weekly, fortnightly, 4-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, however, a repayment deduction exemption will let you off making these.

You can apply for a repayment deduction exemption if you're a New Zealand-based customer and:

  • are studying full-time, or about to start studying
  • will reasonably expect to earn under the annual repayment threshold. 

Apply for a repayment deduction exemption in myIR

You can apply for a repayment deduction exemption in myIR. Select 'Apply for a reduced deduction rate' in your student loan account.

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.

Log in to myIR

Contact us if your situation changes

If your situation changes, your repayment deduction exemption may need to change. Send us a message in myIR to explain the changes in your situation so we can check if the exemption is still right for you.

Last updated: 17 Jun 2021
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