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Student Loan Scheme (First Home Repayment Diversion) Amendment Bill (Consistent) [2016] NZBORARp 60 (7 December 2016)

Last Updated: 14 January 2019

7 December 2016

_{Hon Christopher Finlayson QC, Attorney-General}

LEGAL ADVICE

LPA 01 01 21

Consistency with the New Zealand Bill of Rights Act 1990: Student Loan Scheme

(First Home Repayment Diversion) Amendment Bill

_Purpose

1. We have considered whether the Student Loan Scheme (First Home Repayment Diversion) Amendment Bill (‘the Bill’), a member’s Bill in the name of Gareth Hughes MP, is consistent with the rights and freedoms affirmed in the New Zealand Bill of Rights Act 1990 (‘the Bill of Rights Act’).

2. The Bill amends the Student Loan Scheme Act 2011 so borrowers can opt-in to diverting up to the equivalent of 12% of their student loan repayments into a first home deposit saving scheme.

3. The diverted compulsory repayments can only be withdrawn for a first home or for repayment of the borrower’s student loan. At any point the borrower can choose to transfer the funds back into the student loan account. The saving scheme can be used in conjunction with KiwiSaver withdrawal and the First Home Deposit.

4. The Bill allows borrowers access to the existing one year repayment holiday for travel overseas.

5. We have concluded 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