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Tuesday, February 25, 2025

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Government seeks public input on taxation of charities and not-for-profits

The government has opened a consultation on the taxation of charities and not-for-profits, inviting public feedback on proposed changes aimed at improving fairness, reducing compliance costs, and maintaining tax integrity.

Finance Minister Nicola Willis emphasised the importance of a strong charity and not-for-profit sector while ensuring transparency in tax concessions.

“New Zealand not-for-profits make a significant contribution to the community, and the Government provides tax relief for not-for-profit organisations that meet certain requirements,” Willis said. “It’s important the public has confidence they are getting value for money from these tax concessions.”

Revenue Minister Simon Watts noted that the Inland Revenue Issues Paper explores potential reforms to simplify rules, lower administrative burdens, and address tax integrity concerns.

“It’s important we make sure the settings are right and fit-for-purpose,” Watts said. “No decisions have been made, and all feedback will be considered.”

The consultation document covers key topics, including the tax exemption for charity business income, donor-controlled charities, and measures to enhance integrity and simplification in the sector.

Public submissions are now open, allowing stakeholders to share their views on potential changes to the taxation framework for charities and not-for-profits.

The consultation document can be found here. Consultation closes on March 31 2025.

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5 COMMENTS

  1. We all know the entire ‘charities’ industry is a legalised tax-evasion scheme run by dodgy woke grifters.

    Nice work if you can get it.

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