Student Loan Changes Approved
September 23, 2009 New Zealand Taxation
Numerous changes to the Student Loans system have been approved by the Government.
On the 18th of September it was announced by Peter Dunne, New Zealand Revenue Minister, that governmental allowances had been given to proposed changes to the student loan system. The changes were a product of consultation held in June. In a statement , Peter Dunne said “As a result of hearing a wide range of views, the government has modified one of the main proposals that were presented for consultation a couple of months ago.”
Several changes to the Student Loan scheme were initially proposed by the government, although these were amended after consultation. The most important of these changes includes the dropping of plans to charge student loan repayments if over $367 is earned per week as holiday pay. Instead, this has been replaced with a yearly earning limit of $19,084, below which no repayments are required. Another significant change is the decision to migrate from paper-based management to an electronic system, both internally and for borrowers wishing to access their loan information. Dividends, interest and Maori authority distributions will not be regarded as income if they are under $1,500 annually. Those residing and working in New Zealand will now have their student loan payments deducted along side their PAYE on the same scale as there wages.