24 Jun 2009

Changes proposed to repayment of student loans

6:22 pm on 24 June 2009

The Government is proposing changes to the way student loans are repaid.

At present, people have to make payments on their student loans if their annual income is more than $19,000.

But Revenue Minister Peter Dunne says for salary and wage earners the threshold would be set on a pay-period basis - weekly, fortnightly or monthly.

Mr Dunne says moving to that method would increase accuracy and lower compliance costs. It is hoped a bill will be drafted to enact the changes by the end of this year.

Mr Dunne says comments on the proposed changes can be made on the Inland Revenue Department's website.