Mr Robert McKenzie 
[FYI request #9140 email] 
 
 
Dear Mr McKenzie  
 
Thank you for your request made under the Official Information Act 1982 (OIA) received 
on 27 November 2018. You requested the following: 
 
Why does the IRD take a partners (sic) income details in terms of its’ bizarre 
hardship applications overseas when onshore a student loan debtors partners 
income is irrelevant? 
 
ie an onshore stay at home parent with a student loan is exempt from paying 
even if their partner is earning? 
 
Why is there a different rule for a stay at home parent overseas with a student 
loan?  
 
Why would, for instance an Australian husband married to a NZ student loan 
borrower be in debt to the IRD for his stay at home wife’s very old NZ student 
loan?  
 
How would this even stand up in an Australian court if legal action was taken? 
Considering the loan is over 20 years old?  
 
Section 30(1) of the Student Loan Scheme Act 2011 (the Act) requires that each borrower 
must repay his or her consolidated loan balance in accordance with the Act and the loan 
contract. However, section 147 of the Act sets out the Commissioner of Inland Revenue’s 
discretion to grant hardship relief. Section 147 of the Act states:  
 
147 Hardship relief for any tax year 
(1)  If an application is made under section 145(1)(b) for hardship relief, the    
Commissioner may, for any period the Commissioner considers equitable, 
decrease a borrower’s repayment obligation if the Commissioner— 
(a)  satisfied that payment of that repayment obligation is causing, or 
would cause, serious hardship to the borrower; or 
(b)  considers that there are other special reasons that make it fair and 
reasonable to do so. 
 
While the obligation to repay a student loan lies with the individual borrower, when 
considering applications for hardship relief your scenario is incorrect. Before the 
Commissioner can be satisfied that a person is in a position of hardship, she will require 
verification of a person’s current financial situation, including household family income. 
Ref: 19OIA133 
IN CONFIDENCE 

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This will determine a person’s ability to make repayments. This is regardless of whether 
the person resides in New Zealand or overseas, or the age of the debt. 
 
For your information, a Standard Practice Statement (SPS) setting out Inland Revenue’s 
practice for providing relief from payment of student loan repayment obligations can be 
found here: https://www.ird.govt.nz/technical-tax/standard-practice/returns-debt/sps-
11-03-student-loans-relief-from-repayment-obligations.html 
 
Thank you for your request.  
 
 
Yours sincerely  
 
 
 
Kaylynne Bell 
Group Lead, Customer and Compliance Services, Individuals  
Ref: 19OIA133 
IN CONFIDENCE 

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Document Outline

• Section 30(1) of the Student Loan Scheme Act 2011 (the Act) requires that each borrower must repay his or her consolidated loan balance in accordance with the Act and the loan contract. However, section 147 of the Act sets out the Commissioner of Inla...
• 147 Hardship relief for any tax year
• (b) considers that there are other special reasons that make it fair and reasonable to do so.
• While the obligation to repay a student loan lies with the individual borrower, when considering applications for hardship relief your scenario is incorrect. Before the Commissioner can be satisfied that a person is in a position of hardship, she will...
• For your information, a Standard Practice Statement (SPS) setting out Inland Revenue’s practice for providing relief from payment of student loan repayment obligations can be found here: https://www.ird.govt.nz/technical-tax/standard-practice/returns-...
• Thank you for your request.
• Yours sincerely
• Kaylynne Bell
• Group Lead, Customer and Compliance Services, Individuals

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