Inland Revenue taking tougher line on student loan debtors
Inland Revenue is taking a tougher stance on overseas-based student loan defaulters, including border arrests.
More than 70% of 113,733 overseas borrowers are in default, owing $2.3 billion.
Since July, Inland Revenue collected $207 million, a 43% increase, from overseas borrowers.
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The arrest of a person arriving at the border last month over unpaid student loan debt is an example of Inland Revenue “making up for lost time”, one tax expert says.
Inland Revenue said at the end of April there were 113,733 people with student loans believed to be based overseas. More than 70% were in default on their loans, owing $2.3 billion, of which more than $1b is penalties and interest.
For about 24,000 of these overseas-based borrowers, the debt is more than 15 years old.
Inland Revenue has been taking a tougher line, including arrests at the border as a “measure of last resort”.
“New Zealand Customs informs us of any border crossings into New Zealand by overseas-based borrowers and airlines provide the travel information to us. We apply to the district court and the police make the actual arrest,” spokeswoman Jane Elley said.
“Once arrested and taken before the courts, a judge can order the defaulter to make reasonable efforts to arrange repayment to Inland Revenue.”
Since July 1 last year, 89 people had been told they could be arrested at the border. Eleven had taken action by either making acceptable payments, entering repayment plans or applying for hardship provisions.
“One person was arrested at the border last month and they have since paid off their debt.
“There are just over 150 overseas-based borrowers, with a combined default of $15m, who we actively look out for in case they return to New Zealand.”
Elley said Inland Revenue had collected more than $207m in repayments since July last year from student loan borrowers living overseas – a 43% increase on the same period the previous year.
Inland Revenue had an increase in student loan compliance funding in last year’s Budget.
“We’ve contacted more than 12,000 borrowers, 1320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9m,” Elley said.
She said the department was also looking at borrowers who owned property in New Zealand. There were just over 300, she said.
“During the first six months of our increased compliance work they paid up $1.7m. For defaulters within this group who have refused to engage and resolve their default, further legal enforcement action will be taken, which may include NZ-based bankruptcy or charging orders over their properties.
“There were also 151 [borrowers] with NZ-based investments, and between July and December last year we received payments totalling $84,000 from some of them. Again, there could be legal action ahead, including taking deductions from their investments or bank accounts receiving interest income.”
Robyn Walker, a tax partner at Deloitte, said it was another example of where Inland Revenue had been dormant for a while and was now making up for lost time.
“In the past there has seemingly been very little effort applied to contacting overseas-based student loan defaulters, and ... many of them ... probably were blissfully unaware of mounting repayment liabilities, penalties and interest if Inland Revenue had difficulty contacting them.
“We’ve periodically heard the stories of borrowers being arrested at the border, and it’s actions like that which can really spur people on to get on top of their obligations.
“No one wants to not be able to come back to New Zealand for a special event or family emergency because they’re concerned that their student loan will catch up with them.”
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Poll: 🤖 What skills do you think give a CV the ultimate edge in a robot-filled workplace?
The Reserve Bank has shared some pretty blunt advice: there’s no such thing as a “safe” job anymore 🛟😑
Robots are stepping into repetitive roles in factories, plants and warehouses. AI is taking care of the admin tasks that once filled many mid-level office jobs.
We want to know: As the world evolves, what skills do you think give a CV the ultimate edge in a robot-filled workplace?
Want to read more? The Press has you covered!
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52.1% Human-centred experience and communication
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15.1% Critical thinking
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30% Resilience and adaptability
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2.9% Other - I will share below!
The Gospel’s Relevance Today**
The Gospel, meaning ‘good news’, is the cornerstone of the message contained in the Bible’s first four books—Matthew, Mark, Luke, and John. While these records were written approximately 2,000 years ago, a natural question arises: why is this Gospel still relevant and vital for us today? This analysis seeks to explore what the Bible itself defines as the Gospel and to understand its enduring significance.
**Defining the Gospel: Core Biblical References**
The Gospel is not a vague concept; Scripture provides clear descriptions of its content and focus.
* **The Gospel of the Kingdom:** In Matthew 4:23, as Jesus begins his ministry, he is described as “preaching the gospel of the kingdom.” This immediately establishes that the good news is centrally about a kingdom—the Kingdom of God. His accompanying miracles served to validate the authority of this message.
* **The Gospel of Jesus Christ:** Mark 1:1 opens with, “The beginning of the gospel of Jesus Christ, the Son of God.” Here, “Christ” is a title meaning ‘anointed one’. Thus, the good news is intrinsically about Jesus: his identity as the Anointed One and his unique status as the Son of God.
* **The Gospel of God’s Grace:** In Acts 20:24, the Apostle Paul speaks of his mission to “testify the gospel of the grace of God.” Grace signifies an undeserved gift. This reveals that the Gospel involves a gift from God, offered not because it is merited, but out of His benevolence.
* **The Gospel of Salvation and Peace:** Romans 1:16 declares the Gospel is “the power of God to salvation for everyone who believes,” breaking down barriers between Jew and Gentile (Greek). Furthermore, Romans 10:15 calls it the “gospel of peace,” pointing to a future state of peace brought about by this message.
* **The Gospel Summarised:** 1 Corinthians 15:1-4 provides a foundational summary. Paul reminds believers of the gospel he preached, “by which also you are saved.” He then states its core historical facts: “that Christ died for our sins according to the Scriptures, and that He was buried, and that He rose again the third day according to the Scriptures.” The Gospel is therefore rooted in the sacrificial death and resurrection of Jesus.
In synthesis, the Gospel is the good news of **salvation and future peace in the Kingdom of God**, made possible by **the grace of God** and **the obedient sacrifice of His Son, Jesus Christ**, and offered to all who believe.
**Old Testament Foundations: The Gospel Preached to Abraham**
A crucial question is whether the Gospel is confined to the New Testament. Scripture shows its foundations were laid much earlier. Galatians 3:8 states explicitly that “the Scripture, foreseeing that God would justify the Gentiles by faith, preached the gospel to Abraham beforehand, saying, ‘In you all the nations shall be blessed.’”
This reference points back to Genesis 12:1-3, where God made profound promises to Abraham: to make him a great nation, to bless those who blessed him, and that “in you all the families of the earth shall be blessed.” These promises—later reaffirmed to Isaac and Jacob—form the bedrock of the Gospel hope. The good news of salvation through Christ is the fulfillment of how **all nations** would be blessed through Abraham’s “seed.”
**The Gospel’s Personal Relevance: Good News for You Today**
How does this ancient message become “good news for you” today? The application is clearly outlined in Galatians 3.
* **Access through Faith in Christ:** Galatians 3:26 declares, “For you are all sons of God through faith in Christ Jesus.” The promise made to Abraham is now extended to anyone with faith in Jesus.
* **The Role of Baptism:** Verse 27 explains, “For as many of you as were baptized into Christ have put on Christ.” Baptism is the God-appointed act of faith that identifies a believer with Christ’s death and resurrection.
* **Unity and Inheritance:** Verses 28-29 reveal the glorious outcome: “There is neither Jew nor Greek, there is neither slave nor free, there is neither male nor female; for you are all one in Christ Jesus. And if you are Christ’s, then you are Abraham’s seed, and heirs according to the promise.” Through the Gospel, all barriers are removed; believers become spiritual descendants of Abraham and heirs to the promises of the Kingdom.
This Gospel was once a mystery hidden in God’s purpose (Ephesians 3:3-9). Now, it has been revealed: the unsearchable riches of Christ, offering salvation to all who heed the call, believe the message, and are baptised into him.
**Conclusion: An Enduring and Open Invitation**
The Gospel is far more than a historical account; it is the living, powerful good news of God’s plan for salvation. It is rooted in promises to Abraham, accomplished through the death and resurrection of Jesus Christ, and open to all people without distinction. It offers a tangible hope—the hope of resurrection, peace, and an inheritance in the coming Kingdom of God. This is why the Gospel remains profoundly relevant. It is an invitation to listen, believe, and stand firm in this hope, linking our lives today to the eternal purpose of God.
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