New Zealand Law
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HiI am a New Zealand lawyer based in Wellington and will help you with your question today.
Unfortunately Inland Revenue do have the power to deduct directly from your wages. You can challenge the decision, particularly if you could show that this was going to cause you hardship. Inland Revenue have considerable power given to them under the student loan legislation, but I need to be fair in the process.
Under the Student Loan Scheme Act you can apply for hardship relief, but this applies in each tax year. So you would need to make a case that the additional deductions would cause hardship in terms of the section which I cite for your assistance
147 Hardship relief for any tax year
(1) If an application is made under section 145(1)(b) for hardship relief, the Commissioner may, for any period the Commissioner considers equitable, decrease a borrower’s repayment obligation if the Commissioner—
(a) is satisfied that payment of that repayment obligation is causing, or would cause, serious hardship to the borrower; or
(b) considers that there are other special reasons that make it fair and reasonable to do so.