Student Loan Scheme - volunteer exemption
2011 regulations cover exemptions under the student loan scheme for overseas volunteers by re-enacting the current list of charitable organisations.
The Student Loan Scheme (Charitable Organisations) Regulations 2011 re-enact the current list of charitable organisations specified for the purposes of the Student Loan Scheme Act 1992 under the Student Loan Scheme Act 2011. The effect of being listed is that student loan borrowers working overseas as a volunteer, or for a token payment, for such an organisation may be treated, for a period of up to two years, as if they were based in New Zealand. Borrowers who are based in New Zealand qualify for an interest-free loan.
The following organisations have been added to the list of specified organisations for the purposes of section 25(1)(b) of the Student Loans Scheme Act 2011, with effect from 1 April 2012:
- Servants to Asia's Urban Poor Incorporated;
- Engineers Without Borders New Zealand Incorporated;
- New Zealand Church Missionary Society Trust Board;
- Marist Mission Ranong;
- Aziza's Place;
- WEC International; and
- International Care Ministries Limited.
The order also updates the names of certain listed organisations that have changed since the regulations were introduced in 2006. They are:
- Alay Buhay Foundation Trust, now known as Livelihood International Foundation Trust;
- Student Partnership Worldwide, now known as Restless Development; and
- Christian Blind Mission International, now known as CBM International.
Under the provisions, borrowers must be engaged in one or more of the following activities in order to qualify for the exemption:
- work to relieve poverty, hunger, sickness, or the ravages of war or natural disaster; or
- work to improve the economy of a developing country; or
- work to raise the educational standards of a developing country.
Student loan borrowers seeking the exemption should contact their local Inland Revenue office.
Student Loan Scheme (Charitable Organisations) Regulations 2011 (SR 2011/355)