Student loan info sharing with Australia a reality
Tax authorities across the ditch will now be able to help Inland Revenue track down student loan borrowers in Australia.
The Taxation (Residential Land Withholding Tax, GST on Online Services and Student Loans) Bill passed its final hurdle in Parliament today.
It includes a new information sharing agreement with the Australian Tax Office which will help IRD ensure Kiwis are meeting their student loan repayment obligations.
"Around 70 percent of overseas-based borrowers are in default on their loans and the majority of overseas-based borrowers live in Australia," Revenue Minister Michael Woodhouse said.
"This new agreement will be a significant step forward in speeding up the repayment of the estimated $3.25 billion borrowed by those living offshore."
The Government began a clampdown on overseas-based student loan borrowers back in 2010.