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Government and regulatory watch
Change in tax law will encourage more Kiwis to give
, Added: 03 April 2008A change in the law governing tax rebates in New Zealand will encourage more giving and generosity.
Philanthropy New Zealand predicts an increase in giving will result from the removal of a tax rebate cap for individuals, companies and Maori authorities.
Removing the cap means New Zealanders have a greater opportunity to be more generous, as they will receive a much larger rebate – a NZ$5,000 personal donation will receive a NZ$1665 tax rebate instead of the previous NZ$630, and a NZ$200,000 donation will receive a NZ$66,600 tax rebate, previously NZ$630.
Giving New Zealand research, released last year by Philanthropy New Zealand, shows that there is room for improvement in the country’s generosity.
Although close to NZ$1.3bn was given away in 2005/2006, only one-third of that came from personal donations. The rest is made up from Statutory Trusts and Foundations
According to Philanthropy New Zealand’s executive director, Robyn Scott, business giving has a lot to gain from this law change as well: “They no longer need to be tied to sponsorship arrangements. Businesses can now give up to the limit of their income, bringing them into line with individual giving. The Giving New Zealand research shows only 7% of businesses gave in the 2005/2006 financial year, so there is room for improvement there.”
Ms Scott says the law change recognises the great value the community and voluntary sector returns to New Zealand communities on a daily basis: “Today is a great day to be generous.”
