Student Loans: Changes Ahead for Expats

generateaccounting

July 1, 2014

Changes to student loans for expats

Law changes from 1 April this year will impact New Zealanders with student loans who live abroad.

If a borrower’s loan balance is over NZ$45,000, the amount they need to repay has increased.

Overseas borrowers will now have a fixed minimum repayment obligation regardless of their loan balance. Previously the minimum repayment decreased along with the loan balance.

Of perhaps more concern is the ability for the IRD to stop overseas based borrowers from leaving New Zealand the next time they visit if they have fallen behind with their repayments or ignored their responsibilities.

The IRD have said that they will attempt to contact borrowers in this position whilst they are in the country. However, they have also said that they will apply for an arrest warrant for any borrowers who fail or refuse to make a reasonable effort to pay or make an arrangement to pay.

If you know of anyone who may be impacted by these changes, feel free to forward our details to them. We are only too pleased to discuss how it may impact their personal situation. More information is available on the IRD website.

News

March 26, 2022

Important New Disclosure Rules for Trusts

The government announced that with the introduction of the top marginal tax rate of 39%, there would be increased focus on trusts. The trust tax rate is still at 33% and so there could be the incentive to funnel income through a trust if trustees or beneficiaries were paying 39% on their individual income. Any … Important New Disclosure Rules for Trusts Read More »

Increase to Small Business Cashflow Scheme

The government recently announced an increase to the Small Business Cashflow Scheme (SBCS). This scheme is available for businesses with 50 or fewer employees. The SBCS was introduced to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19. When the scheme was initially announced, businesses could draw … Increase to Small Business Cashflow Scheme Read More »

Tax on Fees Paid to Board Members

Inland Revenue (IR) has recently released information setting out the tax rules which apply on fees paid to board members. The way taxation applies to any fees paid to members will depend on the personal circumstances of the individual member and the terms of their contract/appointment. Employees Many SME companies have employees sitting on the … Tax on Fees Paid to Board Members Read More »