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Inland Revenue

Tax Policy

Announcements
PUBLISHED 4 September 2013

Information sharing agreement to track defaulters

A new regulation made by ‎Order in Council will allow the Department of Internal Affairs to share information with Inland Revenue to help reach student loan borrowers and child support payers. For more information see the media statement.


Hon Todd McClay
Minister of Revenue

4 September 2013

IRD and DIA share information to track defaulters

Internal Affairs Minister Chris Tremain and Inland Revenue Minister Todd McClay have announced a new information sharing agreement which will improve compliance with child support and student loan repayment obligations.

Under the agreement, Internal Affairs will provide Inland Revenue with contact details from adult passport renewals or applications.

“This information sharing agreement is the first to be made following changes to the Privacy Act which enabled effective and carefully controlled information sharing between agencies,” says Mr Tremain.

“This is a good example of government agencies working together to provide better public services and ensure that everyone meets their obligations.”

“Our tax system relies on voluntary compliance and the vast majority of people pay their taxes, their child support payments and their student loan repayments on time. But for those people living overseas who fail to comply, the principal reason is that many of them have simply lost contact with Inland Revenue This common sense measure will allow Inland Revenue to contact those people to arrange payment,” says Mr McClay.

Accurate contact details are crucial for ensuring overseas-based borrowers and parents liable for child support comply with their payment obligations. Inland Revenue’s experience is that 70% of borrowers in default begin to comply once they are contacted.

“Whether you live in New Zealand or elsewhere, you still have an obligation to pay your child support and student loan repayments,” says Mr McClay.

The regulation, made by Order in Council, comes into effect on 3 October 2013.

Media contact for Hon Chris Tremain: Mary-Jane Rendle 021 2889157

Media contact for Hon Todd McClay: Rob Eaddy 0274 596 200