This table summarises our impact assessment of the options. Does it meet Impacts Options the objectives (a, b, c , d or Environmental , social Fiscal Administration Compliance e)? and cultural Risks Net impacts None Revenue negative. Unable to utilise ATO No compliance costs for Announcements have No formalised Overall, negative. Option one - Retain the Debt is likely to database to obtain contact borrowers. been made regarding political commitment Does not progress the status quo (No Arrangement with continue to grow. details for borrowers. the intention of from Australia to information-exchange No expected compliance the ATO for exchange Relies on previous Australian and New assist in student loan mechanism between change for borrowers. of information) initiatives to obtain Zealand to work debt recovery. Australia and New contact details. together for student Zealand. Potential loss of loan debt recovery. goodwill between Failure to proceed Australia and New might be perceived Zealand. negatively. Yes (a, b, c, d, Revenue positive. The indicative Direct positive impact on Change in cultural An Arrangement Overall, positive. Will Option two - Enter into and e*). Estimated revenue administrative cost to compliance experience perception signals to between Australia and support access to a an Arrangement with – – benefits around $10 implement this initiative shows once contacted a borrowers in Australia New Zealand would reliable source of the ATO for the million in additional is $1,143,600 (AUD) over large proportion of that Inland Revenue is set a precedent in information on student exchange of repayments in the five years. borrowers start to comply. able to obtain contact international loan borrowers in information initial year information from cooperation for New Australia. This service is provided (2016/17). Indirect positive impact ATO. Zealand student loan (Preferred option) on a cost-recovery basis. on compliance debt recovery may – – illustrates that Inland prompt other Subsequent are arrangement Revenue is able to obtain countries to pursue expected to have a and implementing details on borrowers similar agreements similar increase legislation need to be living in Australia. with New Zealand. from new contacts developed for information in addition to exchange to be ongoing compliance operational. from those already contacted. An impact assessment has been completed within Inland Revenue. This indicates that the administrative impacts of this proposal are likely to be minimal. Arrangement is able to be easily amended in the future to incorporate reciprocal information sharing. However, there is no explicit provision in *The the Arrangement to cover information sharing on Australian student loan borrowers in New Zealand.
This table summarises our impact assessment of the options. Options Does it meet the objectives (a, b, c , d or e)? Impacts Fiscal Administration Compliance Environmental , social and cultural Risks Net impacts Option one - Retain the status quo (No Arrangement with the ATO for exchange of information) None Revenue negative. Debt is likely to continue to grow. Relies on previous initiatives to obtain contact details. Unable to utilise ATO database to obtain contact details for borrowers. No compliance costs for borrowers. No expected compliance change for borrowers. Announcements have been made regarding the intention of Australian and New Zealand to work together for student loan debt recovery. Failure to proceed might be perceived negatively. No formalised political commitment from Australia to assist in student loan debt recovery. Potential loss of goodwill between Australia and New Zealand. Overall, negative. Does not progress the information-exchange mechanism between Australia and New Zealand. Option two - Enter into an Arrangement with the ATO for the exchange of information (Preferred option) Yes (a, b, c, d, and e*). Revenue positive. Estimated revenue benefits around $10 million in additional repayments in the initial year (2016/17). Subsequent are expected to have a similar increase from new contacts in addition to ongoing compliance from those already contacted. The indicative administrative cost to implement this initiative is $1,143,600 (AUD) over five years. This service is provided on a cost-recovery basis. arrangement and implementing legislation need to be developed for information exchange to be operational. An impact assessment has been completed within Inland Revenue. This indicates that the administrative impacts of this proposal are likely to be minimal. Direct positive impact on compliance – experience shows once contacted a large proportion of borrowers start to comply. Indirect positive impact on compliance – illustrates that Inland Revenue is able to obtain details on borrowers living in Australia. Change in cultural perception – signals to borrowers in Australia that Inland Revenue is able to obtain contact information from ATO. An Arrangement between Australia and New Zealand would set a precedent in international cooperation for New Zealand student loan debt recovery – may prompt other countries to pursue similar agreements with New Zealand. Overall, positive. Will support access to a reliable source of information on student loan borrowers in Australia. *The Arrangement is able to be easily amended in the future to incorporate reciprocal information sharing. However, there is no explicit provision in the Arrangement to cover information sharing on Australian student loan borrowers in New Zealand.
2015-ris-rlwtgstossl-bill-1.docx