Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IRD plans to replicate Australian student loan success in UK

Wednesday 09 November 2016 01:08 PM

IRD plans to replicate Australian student loan success in UK, officials tell MPs

By Sophie Boot

Nov. 9 (BusinessDesk) - Inland Revenue says it's in talks with foreign tax departments including the UK's HM Revenue & Customs as it steps up efforts to recover money owed by overseas-based student loan borrowers.

Kiwis living overseas accounted for more than 90 percent of the $1.07 billion in overdue repayments to the Student Loan Scheme as at June 30. Some $15.34 billion is owed under the scheme by 731,754 borrowers, of which overseas borrowers owe 21 percent, or $3.24 billion by 110,739.

Earlier this month, IRD said an information exchange agreement with the Australian Tax Office (ATO) had identified 10,400 student loan borrowers living across the Tasman, and it would contact them about repaying their loans. At the finance and expenditure select committee this morning, National MP Chris Bishop asked whether that debt collection could be extended to other similar jurisdictions like the UK or Canada.

"We are already working with some of those parties and indeed have debt collection agencies working in those countries," commissioner and chief executive Naomi Ferguson said.

Deputy commissioner Arlene White told the committee the department was talking to the UK's HMCR "right now, and we're looking at a bilateral that we could engage with them and share data with them."

"It's always a matter of them wanting to share with us," she said. "Around 65 percent of overseas-based borrowers are in Australia so we do think we're getting the majority of them, but other jurisdictions are also part of our planning."

In 2014, the government amended the Student Loan Scheme Act to allow for the border arrest of borrowers in default on their loan repayments. The first arrest under this amendment was made in January this year, with two further arrests since.

Ferguson said there had been a 17 percent increase in loan repayments from overseas borrowers in the year to June 30, and IRD had been working to better communicate with borrowers and make it easier for them to repay their debt, but couldn't say whether there had been an increase in the second half of the financial year after the first arrest was publicised in January.

"We certainly have an increased amount of contact from overseas-based borrowers following the arrest at the border, as we continue to grow our social communications," White said.

Green MP James Shaw asked whether the new IT system the IRD is in the process of building would be able to handle a progressive rate of repayments for loan borrowers, as one hypothesis was that a variable rate would encourage low earners to stay and make repayments sooner. Ferguson said the system would be able to do that, but not for the next couple of years.

"The new system has got the ability for us to be more flexible in how we are thinking about tax administration," she said.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: