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New legislation - 2006: Orders in Council (2006)

Student loan scheme charitable organisations (Order in Council)

Section 87 of the Student Loan Scheme Act 1992

Under section 38AE 1(b) of the Act, a student loan borrower who has been personally absent from New Zealand because he or she was working as a volunteer or for token payment for a charitable organisation named in the regulations may be granted an exemption. An exemption entitles that borrower to a full interest writeoff, which gives effect to the government's interest-free student loan policy.

Borrowers living overseas for more than six months will generally not qualify for the interest-free student loans policy which came into effect from 1 April 2006. However, the law gives the Commissioner of Inland Revenue to grant an exemption for certain borrowers who are overseas.

The charitable organisations covered by the exemption are:

  • Adventist Development and Relief Agency International (ADRA);
  • Alay Buhay Foundation Trust;
  • Amnesty International;
  • ANCOP Foundation International Inc;
  • Anglican Social Services (Hutt Valley) Trust Board;
  • Caritas Internationalis;
  • ChildFund International;
  • Christian Blind Mission International (CBMI);
  • Christian World Service (CWS);
  • CORSO Incorporated;
  • Doctors Without Borders/Médecins Sans Frontières;
  • ECPAT International;
  • Habitat for Humanity International;
  • Hibiscus Coast East Timor Appeal Trust (HETA Trust);
  • IHC New Zealand Incorporated;
  • International Federation of Red Cross and Red Crescent Societies;
  • IN Network;
  • International Save the Children Alliance;
  • Mahitahi Catholic Overseas Volunteer Trust;
  • Mobility Equipment for the Needs of Disabled Trust (MEND);
  • New Zealand Family Planning Association Incorporated;
  • New Zealand Vietnam Health Trust;
  • Oxfam International;
  • Pax Christi International;
  • RedR International;
  • Richmond Fellowship International (RFI);
  • Rotary International;
  • Soroptimist International;
  • SurfAid International;
  • Te Ora Hou Aotearoa Incorporated;
  • TEAR Fund;
  • The Cambodia Trust;
  • The Foundation for Peace Studies Aotearoa/New Zealand Incorporated (The Peace Foundation);
  • The Fred Hollows Foundation;
  • The Leprosy Mission International (TLM);
  • The Salvation Army International;
  • The UMMA Trust;
  • The Volunteer Ophthalmic Services Overseas Charitable Trust (VOSO);
  • Trade Aid New Zealand Inc;
  • United Nations Children's Fund (UNICEF);
  • United Nations Development Fund for Women (UNIFEM);
  • Vietnam Cambodia and Laos Support Network (VICALSN);
  • Vision Pacific Charitable Trust;
  • Volunteer Service Abroad Inc;
  • World Vision International;
  • WWF; and
  • World Young Women's Christian Association (World YWCA).

The amendments were made by Order in Council on 27 March 2006 and came into force on 1 April 2006. (Student Loan Scheme (Charitable Organisations) Regulations 2006, 2006–68)