How do student loan repayments work for NZ self-employed people?

If you have a New Zealand student loan, you must make repayments on your income as a sole trader. This is separate from income tax and ACC levies. **How it works for sole traders:** - You declare your net self-employment income on your IR3 - IR calculates your student loan repayment obligation (12% of income above the repayment threshold) - For 2024/25, the repayment threshold is NZ$22,828 - Repayments are included in your end-of-year tax assessment **Provisional student loan repayments:** If your income is high enough, you may need to make interim student loan repayments (alongside your provisional tax instalments) to avoid a large end-of-year bill and potential use-of-money interest. **Key points:** - Student loan repayments are NOT a deductible business expense - The repayment rate is 12% of net income above NZ$22,828 - If also employed, PAYE deductions cover your employment income — you only need to account for additional self-employment income - Overseas borrowers have different rules

• Student loan repayments: 12% of net income above NZ$22,828 (2024/25)
• Calculated and assessed through your IR3
• May need interim repayments with provisional tax
• Not a deductible business expense
• Different rules if you are overseas