Annual report - 2004 - Part 1

Delivering on our outcomes from the 2004 Annual Report - 2

Family assistance and paid parental leave

Outcome sought: Eligible families with dependent children receive the financial support they are entitled to.

Family assistance is distributed by Inland Revenue and the Ministry of Social Development. This year we distributed $505 million of the $1.002 billion distributed in family assistance.

In 2003-04 family assistance was made up of four specific components. Figure 8 shows how each of these components contributed to the total amount of family assistance distributed by Inland Revenue and the Ministry of Social Development.

Paid parental leave

We distributed $63.624 million in paid parental leave to 16,457 ⁶ parents, this compares to $56.453 million in the first year of the scheme. The increase is attributed to two causes:

• 2003 was the first year of operation, and so included a start-up quarter with lower than normal payments
• the maximum amount of paid parental leave is inflation-indexed each year. It was paid out at $325 per week in 2003, and $334.75 per week in 2004.

^{6 In 2002-03 we reported applicants rather than recipients of paid parental leave. The number reported, 20,029 included 13 months of data, and was calculated using a different methodology to that used in 2003-04. Using the 2003-04 methodology the number of applicants for 2002-03 was 16,685, and in 2003-04 was 17,035.}

Student loan repayments

Outcome sought: Student loans are repaid.

There are 418,761 student loan borrowers. In 2003-04 we collected $447.2 million in loan repayments, compared to $386.39 million in 2002-03, with 18,002 borrowers finishing repaying their loan.

The median value of all student loans is $10,017, an increase from $9,470 in 2002-03. This increase is in line with expectations, as the number of borrowers and the amount each is borrowing are both increasing.

More than 550,000 people have borrowed under the Student Loan Scheme since it began. Less than 5% of all those who have ever used the scheme were recorded as being overseas in 2004. The number of borrowers recorded as overseas ⁷ as at 30 June 2004 was 25,379 (6% of all borrowers). Of the borrowers overseas, 11,437 (45.1%) had overdue repayment obligations. Non-resident borrowers owe 58% of the total overdue debt, yet they make up just over 21% of all borrowers in default.

^{7 The number of borrowers overseas may be higher than reported, due to borrowers leaving New Zealand without advising Inland Revenue.}

One of the contributing factors for the rising non-resident borrower debt, is the difficulty in maintaining contact with borrowers who are overseas. Other factors, such as people working overseas for short periods to fund travel, can impede some borrowers' ability to pay. We have been implementing ways to improve contact with borrowers who are overseas, see e-Government services and Tailored services meeting needs.

For detailed information on the student loan scheme refer to the Student Loan Scheme Annual Report, a joint publication of the Ministry of Social Development, Ministry of Education and Inland Revenue.

Other pages in: Annual report - 2004 - Part 1

• Delivering on our outcomes from the 2004 Annual Report - 1

Date published: 16 Nov 2004

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