Charity Named For Interest Free Student Loans
February 23, 2010 New Zealand Taxation
The Revenue Minister has stated that New Zealanders who are undertaking overseas work for Partners Relief and Development NZ may now be eligible for an interest-free status on their student loans.
In an effort to foster a greater sense of charitable work amongst New Zealanders, Peter Dunne, New Zealand Revenue Minister, announced on February 23rd that individuals who are working overseas for Partners Relief and Development NZ will now be eligible for an interest write-off on their student loans. The change is scheduled to come into effect on April 1st.
Typically, student loans are charged interest when an borrower works outside of New Zealand, and an individual is required to reside within New Zealand for at least six months to receive an interest-free student loan; exceptions apply when the employer is charitable organization which is named by an Order of Council by the New Zealand Government. Although, the New Zealand Inland Revenue Department (IRD) retains a legal right deny eligibility to an individual, if it finds adequate reason to do so.
The interest-free allowance for was initiated by the New Zealand Government in March 2006, and featured 48 recognized charitable organizations. At the time of the current announcement, the legislation concerning interest free loan had grown to include 76 applicable organizations.
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