Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Payroll giving - making it easier to donate

Payroll giving - making it easier to donate to good causes

The Ministers of Finance and Revenue launch a discussion document on payroll giving to charities

The government is looking at ways to make it easier for people to donate to their favourite charities and other non-profit causes.

A discussion document released today by Finance Minister Dr Michael Cullen and Revenue Minister Peter Dunne explores the possibility of introducing a voluntary payroll-giving scheme that would make it easier for people to donate money to their chosen charity.

"Payroll giving allows people to have donations deducted automatically from their pay and forwarded to their chosen charity by their employer. In return, people who make donations in this way receive immediate, real-time, tax relief reflected in their normal pay, based on the amount they donate," the Ministers said.

"Based on overseas experience, payroll giving has the potential to increase donation levels and establish genuine partnerships between businesses and the community.

"For payroll giving to be a truly winning formula, however, we recognise that it must also be easy for employers to administer.

"In particular, we want to ensure that such a scheme does not raise undue costs and is easy to administer for employers who choose to offer payroll giving. This was a key concern raised during our earlier consultation with representatives of charities and donor and employer groups.

"For employees, a payroll-giving scheme offers a convenient and simple way to donate without their having to retain receipts and request and file a rebate claim form at the end of the year. All they need to do is choose their charity, set the amount of their donation and ask their employer to deduct their donation each payday.

"For charities, it is an efficient, low-cost way to raise funds and delivers the regular income support they need, while for employers, payroll-giving schemes can provide a low-cost and administratively simple way to build employee morale by supporting their efforts for charity, and raising the business's profile in the community.

"The foundation for building a culture of charitable giving in New Zealand was laid in Budget 2007, which announced the removal of limits on the current tax relief on charitable donations made by individuals, companies and Mâori authorities.

"Our next step is to make it easier for people to donate to their chosen charities," the ministers said. "This discussion document looks at one of the ways we might achieve this.

"The type of payroll giving described in the discussion document has been introduced successfully in a number of other countries, including Australia and the United Kingdom, and looks at two options for this type of charitable giving. We are now seeking the views of employees, employers and charities on what type of scheme might work best for New Zealand.

"We already know that New Zealanders are generous people. In fact, according to a 2005 study by BERL, New Zealanders gave some $1.27 billion to philanthropic and charitable causes that year.

"This proposal recognises the importance of charitable giving to New Zealanders. It also acknowledges the significant role charitable organisations play in delivering many services that make a positive difference in our communities," the ministers said.

"The initiative is part of the government's commitment to fostering a culture of charitable giving in New Zealand and is a direct result of the confidence and supply agreement between United Future and the Labour-led government."

The discussion document, Payroll giving: providing a real-time benefit for charitable giving, is available at www.taxpolicy.ird.govt.nz. Submissions close on 25 January 2008.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

United Future History: "All Good Things Must End"

'We’re extremely proud of what we’ve achieved over the past 15 years, working alongside the government of the day, both National and Labour.' Mr Light told members on Monday. More>>

Gordon Campbell: On The TPP Outcome, And The Hobbit Law

Somehow the Trans Pacific Partnership trade deal has come lurching back from the dead – and as predicted in this column last week, the member countries gathered in Vietnam have announced a deal in broad principle, shunted aside until a later date the stuff on which they don’t agree, and declared victory. More>>

Agreeing To Differ: Greens Maintain Opposition To TPPA
“The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman. More>>

ALSO:

Monitoring Report: A New Chapter For Children’s Rights In New Zealand?

The Children’s Commissioner is calling on the country to embrace children’s rights to ensure their overall well-being. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election