Interest-free student loans - exemptions from the 183-day requirement
Basic criteria
If you're away from New Zealand for 184 or more consecutive days (about 6 months), or if you're away for 32 or more days during a 183-day qualifying period, you won't be eligible for an interest-free student loan. However, you might be eligible for an exemption if you can provide proof that one of the situations below applies to you.
Please send a photocopy of any documentation, not the original.
When to apply
You can apply for an exemption before you leave, while you're away, or on your return to New Zealand.
How it works
Once we've received your application, we'll send you a letter confirming whether your exemption has been granted or declined. If you're eligible, interest charged during the exemption period will be written off. See "Find out more" below, for details on how interest-free student loans work.
How to apply
Send the required documentation to one of the addresses below. If you live:
| overseas: | in Auckland: | in other North Island areas: | in the South Island: |
|---|---|---|---|
| Inland Revenue Non-resident Centre PO Box 1247 Dunedin |
Inland Revenue PO Box 1477 Hamilton |
Inland Revenue PO Box 39010 Wellington Mail Centre |
Inland Revenue PO Box 3753 Christchurch |
Exemptions
You'll be eligible for an exemption if one of the following situations applies to you:
- Unexpected delay returning to New Zealand
- Unplanned absence
- Studying full-time at undergraduate or postgraduate level overseas
- Working overseas for the New Zealand Government
- Absence due to employment or occupation
- Working as a volunteer overseas
- Accompanying your spouse or partner overseas because they're studying, working overseas for the New Zealand Government , working overseas for a New Zealand employer, or working as a volunteer.
Unexpected delay returning to New Zealand
Examples
- Airline strikes
- Personal illness
- Death or illness of a family member
- Fire, flood, storm, earthquake, landslide or volcanic eruption
- An explosion or nuclear, biological, or chemical contamination
- Sabotage, terrorism or an act of war
Requirements
You must be a New Zealand tax resident (see "Next Steps" below, for details) during the time you were overseas and provide proof of all the following:
- When you originally intended to return to New Zealand
- That you would have satisfied the 183-day requirement if you hadn't been delayed
- That the unexpected delay was due to an event or circumstances beyond your reasonable control.
Examples of proof
- An airline ticket showing the change in departure/arrival date
- A medical certificate or a letter from the doctor confirming the illness
- A copy of the death certificate, or a letter from the doctor or coroner, or a funeral account confirming death
- Documentation of airline strike
- In cases of natural disaster or an act of war, media coverage of the event may be enough confirm the reason for your delay as long as you can prove that you were affected by this event.
Unplanned absence
When it's required
An exemption for an unplanned absence is only required if you're away for 32 or more days during a 183-day qualifying period.
Examples
- Illness or death of a family member overseas
- An employer requiring you to attend a conference overseas.
Requirements
You must be a New Zealand tax resident (see “Next Steps” below, for details) during the time you were overseas and provide proof:
- of the length of your unplanned absence from New Zealand, and
- that the absence was due to an event or circumstances beyond your planning or control.
Example of proof
- Airline tickets, hotel accommodation, or other proof of duration overseas
- Medical certificate or letter from doctor, confirming illness
- Death certificate, letter from doctor or coroner, funeral account confirming death
- Letter from employer confirming required absence, or a copy of a business contract.
Studying full-time at undergraduate or postgraduate level overseas
Requirements
From 1 April 2006 to 31 March 2007, your study must be at levels equivalent to 8, 9 or 10 on the New Zealand Register of Quality Assured Qualifications (under section 253(1)(c) of the Education Act 1989).
From 1 April 2007, your study must be at levels equivalent to 7, 8, 9 or 10 on the New Zealand Register of Quality Assured Qualifications (under section 253(1)(c) of the Education Act 1989).
You can refer to the KiwiQuals website for more information about your equivalent level of study.
Required proof
You'll need all of the following:
- An Overseas Study Assessment from the New Zealand Qualifications Authority (NZQA) verifying that the under-graduate or post-graduate course is equivalent to level 8, 9 or 10 (or level 7 for study undertaken after 1 April 2007). You’ll also need to provide the security and assessment number that are supplied with your Overseas Study Assessment.
- Evidence from your overseas education provider confirming your full-time enrolment for the course verified by NZQA.
- Your start and expected end date of study.
- Any other information that we may reasonably require to approve an exemption, such as receipts for paid fees.
Working overseas for the New Zealand Government
Who qualifies
You can qualify for this exemption if you're absent from New Zealand in the service of the New Zealand Government in any capacity.
Required proof
A letter from the government agency that you're working for, on their letterhead, stating your name, IRD number, the length of time you'll spend overseas, and that the reason for being overseas is due to work on behalf of the New Zealand Government.
Absence due to employment or occupation
Requirements
You must be a New Zealand tax resident (see “Next Steps” below, for details) during the time you're overseas and provide proof of the following:
- you have a permanent place of abode (home, house, flat, apartment etc) only in New Zealand, and
- you receive either salary or wages, from a New Zealand employer, or
- you receive income from a business that has a permanent place of business in New Zealand.
Required proof
You'll need to provide a letter from the person or business that you're working for. The letter must be on their letterhead, stating your name, IRD number, the length of time you'll spend overseas, and that the reason for being overseas is because of employment or occupational requirements.
Working as a volunteer overseas
Requirements
You must be working either as a volunteer or for token payment for a charitable organisation listed in the regulations under the Student Loan Scheme Act 1992.
In addition, the main part of your work needs to involve:
- working for the relief of poverty, hunger, sickness, the ravages or war or natural disaster, or
- improving the economy of a country that's recognised by the United Nations as a developing country.
You'll also need to declare your worldwide income at the end of each tax year.
An exemption for volunteer work can only be granted for a maximum total period of 24 months.
Required proof
You need to provide a letter from the charitable organisation on their letterhead, stating your name, IRD number, the length of time you'll spend overseas, and that the reason for being overseas is due to carrying out charity work for the organisation.
Additional information
To find out how to add a charity to the regulations, see "Find out more" below, for details.
Accompanying your spouse or partner overseas
Requirements
You must be a New Zealand tax resident (see “Next Steps” below, for details) during the time you're overseas and your spouse or partner must be absent for one of the following reasons:
- Studying full-time at undergraduate or postgraduate level overseas
- Working overseas for the New Zealand Government
- Employment or occupation
- Volunteer work overseas
An exemption for volunteer work can only be granted for a maximum combined period of 24 months.
Relationship proof
A partner includes a civil union partner or a de facto partner. Examples of proof of the relationship can include:
- a copy of your marriage or civil union certificate
- a copy of your tenancy agreement or joint property mortgage, and
- statements showing household account or bank accounts in your joint names.
Other proof
You'll need to provide proof that you accompanied your spouse or partner overseas for one of the reasons listed above. Depending on the reason for your spouse or partner's absence, you'll also need to provide further proof. See the exemptions listed above for the information you'll need to provide.
Find out more
Next steps
- Eligibility for interest free student loans
- Other interest write-offs
- Whether you're a New Zealand resident for tax purposes
Date published: 24 Apr 2009
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