A number of changes that took effect on April 1, 2012, would impact student loan borrowers, KiwiSaver members and people receiving Working for Families Tax Credits.
Inland Revenue Department (IRD) Acting Customer Services Manager Denis McDermott claimed that the changes to the student loans scheme would improve its administration, management and repayment.
“They are designed to reduce the possibility of borrowers defaulting on their loans and help address the overall size of student loan debt. Borrowers will receive up- to-date balance of their loan, and see changes around the length of repayment holidays if they go overseas, late payment penalties and other aspects of the scheme,” he said.
Working students
Students employed must add ‘SL’ to their tax code and make repayments if they earn more than the pay-period repayment threshold of $367 a week.
“If you want to pay off your loans faster, you can make extra repayments directly to IRD or ask your employer to make extra deductions,” Mr McDermott said.
He said from April 1, employer contribution to KiwiSaver will be taxed and the members’ tax credit will change for the year ending June 2012 onwards, up to a maximum of $521 a year.
Mr McDermott said his department has written to all employers, identifying the changes that affect them, such as the new Student Loan repayment codes, with a checklist to help them understand what they need to do.
For more information, visit www.ird.govt.nz
Editor’s Note: The above was based on a press release from the Internal Revenue Department. Indian Newslink has carried exclusive and extensive articles related to the subject by the Department’s Community Relationships Advisor in our January 15, 2012 and subsequent issues.
Arunima Dingra, a licenced Immigration Advisor and Managing Director of Auckland based Aims Global Education and Immigration Services Limited, explains further:
Living Expenses
With effect from April 2, 2012, living expenses for student visas will be $15,000 per annum. This figure applies to student visa applications lodged on, or after this date. However, applications lodged before this date will attract the earlier amount of $10,000 per annum.
Students intending to take up a single course of two years duration or two qualifications in succession, (for example Level 5 followed by Level 6), must submit evidence of liquid funds covering the cost of tuition fee and living expenses for both years at the outset.
Study to Work Visa
The following categories of Student applicants are eligible for consideration of a Graduate Job Search or Graduate Work Experience visa:
Students who have completed a qualification at Level 7 or above in New Zealand for at least one academic year
Students who have completed a qualification at Level 4 to 6 in New Zealand for at least two academic years
Students who have completed two individual qualifications at Level 4 to 6 in New Zealand, provided the second qualification is at a higher level than the first (two year study in New Zealand in total).
Not all Level 4 qualifications are eligible – only National Certificates Level 4 or the newly introduced NZQA owned New Zealand Certificate Level 4 qualify, if they meet the conditions listed in Immigration Instructions SM 14.10.
Other changes
Funds required by applicants for Graduate Job Search Visas will rise from $2100 to $4200.
Funds required by partners of student visa holders who are applying for work visas will be $4200.
