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Inland Revenue

Tax Policy

Announcements
PUBLISHED 26 February 2007

Student loan regulations

Orders in Council signed today:

  • set the student loan interest rate for the 2007-08 tax year at 6.8%, down from 6.9%, and
  • named a further six charitable organisations whose volunteers may qualify for interest-free loans while working for them overseas.

For more information see the media statements.


Hon Peter Dunne
MP for Ohariu Belmont
Minister of Revenue
Associate Minister of Health

Media Statement

Student loan interest rate set for 2007-08

The interest rate on student loans for the 2007-08 tax year has been set at 6.8%, down from 6.9%, Revenue Minister Peter Dunne announced today.

"The interest rate, for those borrowers who still have to pay interest on student loans, is based on a five-year average of the ten-year bond rate, plus a margin to cover administration costs," Mr Dunne said.

The change was approved by Order in Council today.


Hon Peter Dunne
MP for Ohariu Belmont
Minister of Revenue
Associate Minister of Health

Media Statement

Overseas charity workers and interest-free student loans

The government today named a further six charitable organisations whose volunteers may qualify for interest-free student loans while working for those organisations overseas.

In addition to the 48 qualifying organisations named last year, the six charitable organisations approved by Order in Council today are:

  • Interserv (NZ)
  • Mission Aviation Fellowship of New Zealand Inc;
  • National Spiritual Assembly of the Baha’is of New Zealand;
  • NET Ministries (National Evangelization Teams);
  • OMF New Zealand (Overseas Missionary Fellowship); and
  • Bright Hope International Trust.

Borrowers are generally required to be present in New Zealand for six months in order to qualify for the interest-free provision. However, the law allows Inland Revenue to grant an exemption for certain borrowers who are overseas, including those who are working for free or for a token payment for a charitable organisation.

"The regulation recognises the special circumstances of these charities, their employees and the contribution they make through various activities that are not based on profit or remuneration," Revenue Minister Peter Dunne said.

Borrowers working overseas for named charitable organisations would still have to apply to Inland Revenue to determine if they qualify for the interest write-off.