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Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill (Consistent) [2009] NZBORARp 43 (16 July 2009)

Last Updated: 28 April 2020

Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill

16 July 2009

Attorney-General

LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990:

STUDENT LOAN SCHEME (EXEMPTIONS AND MISCELLANEOUS PROVISIONS) AMENDMENT BILL

1. We have considered whether the Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill (PCO 8319/16.0) (“the Bill”) is consistent with the New Zealand Bill of Rights Act 1990 (“Bill of Rights Act”). We understand the Bill is likely to be considered by the Cabinet Legislative Committee on Thursday, 23 July 2009.

2. The Bill amends the Student Loan Scheme Act 1992 to extend interest free loans to:

• borrowers who are present in one or more of Niue, the Cook Islands, Tokelau or the Ross Dependency for a period of 183 or more consecutive days after 31 March 2009, and
• students enrolled with a New Zealand education provider and engaged in full-time study overseas under either a formal exchange programme approved by the New Zealand Government or a formal agreement between a New Zealand tertiary education provider and an overseas tertiary education provider.
  

3. The Bill also makes a number of technical amendments to the Student Loan Scheme Act

1992 including:

• inserting a formula to determine the total interest rate

• removing the limitation on the prior tax years for which borrowers may seek relief on hardship grounds
• permitting the Commissioner of Inland Revenue in certain circumstances to increase the standard rate for repayment deductions from salary and wages from 10 to up to

15 cents in the dollar

• increasing the period in which a loan may be repaid in full without incurring additional interest from 15 days to 30 days, and
• making adjustments to the interest free loan scheme, including clarifying that a borrower may only obtain the benefit of the exemption if the organisation was listed in the Student Loan Scheme (Charitable Organisations) Regulations 2006 at the time the borrower did the work, changing the definition of developing countries, limiting when world-wide income may form part of an assessment for entitlement to an interest-free loan, and allowing borrowers who repay their loans in full before the

183 day period has run to remain interest free.

4. We note that the extension of interest free loans to individuals in Niue, the Cook Islands, Tokelau and the Ross Dependency draws a distinction based on nation or territory of residence. However, this distinction relies on physical presence within one or more of these countries or territories rather than an individual’s ethnic or national origin. This is demonstrated by the inclusion of the Ross Dependency, as it is a territory that no one can claim as her or his ethnic or national origin. Any individual, regardless of ethnic or national origin, may take advantage of the interest free loan if she or he is present in one or more of the above named countries or territories for the prescribed period in each year.

5. This advice has been prepared by the Public Law Group and the Office of Legal Counsel. We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act.

Jeff Orr

Chief Legal Counsel

Office of Legal Counsel

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Student Loan Scheme (Exemptions and Miscellaneous Provisions)

Amendment Bill. It should not be used or acted upon for any other purpose. The advice does

no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.