Treatment of New Zealand-based borrowers who are non-resident

Sections 94, 114A, 155 and 156

Two amendments have been made in relation to New Zealand-based borrowers who are non-resident, in order to reflect the original policy intent of the legislation. The first relates to the provision of an extension of time to provide information and the second relates to the due date for remaining repayments.

A borrower who is non-resident but is treated as being physically in New Zealand - such as a borrower studying overseas or working for an overseas aid agency - is required to provide the Commissioner with a declaration of their worldwide income within the same timeframe as New Zealand-based borrowers who file an IR 3 tax return. For most non-resident borrowers, this is 7 July.

While New Zealand-based borrowers who reside here are able to apply for an extension of time to file their income tax return, no similar extension of time applies to the provision of income and allowable expenses information of New Zealand-based borrowers who are non-resident.

The first amendment enables non-resident borrowers who are treated as New Zealand-based to apply for and be granted an extension of time.

The second amendment clarifies that New Zealand-based borrowers who are non-resident must pay their repayment obligation on the same dates that New Zealand-resident borrowers with other income pay their remaining repayments.

Application date

The amendment applies from 1 April 2012.