The voluntary repayment bonus that has been available to student loan borrowers since 2009 is being removed from 1 April 2013.
The bonus scheme was intended to encourage faster repayment of student loans by borrowers by offering a 10% bonus for any repayments of $500 or more, over and above the borrower’s repayment obligations.
From 1 April 2013, any extra repayments made over and above the borrower’s standard repayment obligations will no longer qualify for the repayment bonus.
If any student loan borrowers wish to take advantage of the 10% voluntary repayment bonus they will need to make their voluntary repayments before 1 April 2013.
If you have any questions regarding the voluntary repayment bonus, please contact your Hayes Knight adviser or the Hayes Knight Tax Team:
T + 64 9 414 5444
Shelley-ann BrinkleySenior Manager – Tax Consulting
T +64 9 414 5444