According to the IRD's own research: " There is a tipping point at which penalties and interest decrease compliance, at around $10,000 (total...debt, including core debt, penalties and interest) beyond which people feel that they will not be able to pay off the amount." In other words, if the debt owed to the IRD is much more than $10,000, for a sole trader or small business, the debt may be too much to cope with. It is important to recognise the early warning signs of a tax debt becoming too much, as this means that there may be a larger number of resolution options available, compared to at ..read more

It seems that whichever government is elected to lead New Zealand at the 17 October election, the provisions for student loan borrowers will become less favourable. The ACT Party wants to abolish interest free loans for domestic students. Labour will not be proceeding with the rolling out of its fees free policy to the second year of tertiary study, and it has also abandoned its promised post graduate student allowance. If you are thinking about studying, our advice is to investigate whether you have the option to study in another country (many don't charge fees or have a more generous schola ..read more

It is reported that more than 5500 overseas-based student loan borrowers have returned to New Zealand since April 2020. If you are one of these people, these points may be useful: You need to let the IRD know that you have returned.  Your obligatory payment obligations will change from a flat amount to an income based amount. Some returnees will now have no obligation to make payments (if their income is low and they have no arrears), and others will have to pay more. If you have overdue arrears you are now an easy "target" for the IRD to take action against, if you do not resolve them ..read more

The Levy Institute of Economics' research shows that full student debt cancellation would put billions of dollars back into the economy. ​Instead of paying back debts, bloated by interest and penalties, to the IRD, people could spend directly on goods and services, providing an immediate boost to businesses, and allowing the former student loan borrowers to plan for their future by saving for a home, baby, business or retirement. Other sectors of the economy have had billions of dollars poured in to keep them afloat. Helping those who are struggling, and providing a financial life raft ..read more

Now is the time to make your voice heard to the politicians. If you are not happy with the student loan debt scheme, or its administration, ask for change now. There are 70,000 NZ student loan debtors living overseas. Together you can be a formidable force for change that brings about better win/win solutions for these debts. Use your voice! Use your vote ..read more

There is growing negativity in New Zealand about helping New Zealanders who live overseas. This can be seen in the increasingly negative comments about Kiwis who are trying to return home, and whose path has been made more difficult by changing airline schedules and shut borders. There are reports of people, in quarantine in NZ, being abused by members of the public. We see a similar escalation in nastiness directed at overseas based student loan borrowers. We understand why you are in the position you are in, but there are many others who are abusive or who believe that Kiwis with studen ..read more

If you have recently returned to New Zealand, and you have a student loan debt, have you worked through the implications for the debt? These include: Letting the IRD know (if you don't have MyIR we recommend setting it up at the same time). Future ordinary interest should come to an end. For some people this will make enough difference so that they can get the debt under control. If you have overdue debt it still needs to be dealt with ASAP . The IRD has greater powers to force you to pay if you are living in NZ. ​If an NZ bankruptcy was an option you were considering, the implications are mo ..read more

Fraudulent student loans can destroy lives. Fortunately, the IRD now has greater powers to deal with fraudulent student loans. In situations where the IRD is satisfied that the person, who was allocated the loan debt, did not actually take it out, and the actual person cannot be identified, the IRD may be able to write off the loan. Generally speaking, the IRD will deal with such cases where the loan balance was transferred before 1 April 2000, and Study Link will usually deal with loans transferred after that date.  ..read more

The push for relief for student loan debtors is growing in many countries, including the US, but not in New Zealand. Many of our overseas based student loan debtors are under a burden so heavy that it impacts their mental health and quality of life. With Covid, many borrowers have suffered a reduction in income, making it even more difficult to pay a debt that has grown out of control. A complete reworking of the scheme would be best in order to provide better resolution options, however, at the very least why aren't we granting an interest/repayment holiday while Covid is affecting so many o ..read more

We were delighted to receive this lovely email from a recent client: Kristina, thank you so much for all of your work. It was definitely worth requesting your services. This is a good outcome. You have explored avenues that I could never have known existed. I thank you for your professionalism, clarity and promptness throughout what could have been a much more stressful process. I have avoided this for so long and it is good to have an outcome. I very much appreciate that you exist(!) and you have provided information throughout the process that I would not be able to locate anywhere else ..read more