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


Treatment of volunteer reimbursements reviewed

Media statement
For immediate release
Thursday, 1 November 2007

Tax treatment of volunteer reimbursements to be reviewed

Clarifying and simplifying the law on how reimbursements and honoraria paid to volunteers in the non-profit sector should be taxed is the subject of an Inland Revenue Department issues paper released today for public consultation.

Finance Minister Dr Michael Cullen and Revenue Minister Peter Dunne welcomed the paper, saying it was “an important step closer towards resolving a long-standing dilemma for volunteers and non-profit organisations over how reimbursements should be taxed.

“Because the law is unclear, volunteers and non-profit organisations have often been uncertain about their tax obligations relating to reimbursement and honoraria payments to volunteers.

“As a result, an inconsistent range of administrative practices has developed over the years, which in turn has contributed to increased compliance costs for these organisations,” Mr Dunne said.

“This issues paper looks at a number of possible solutions to this long-standing problem.

“As part of the government’s tax policy consultation process, officials are seeking feedback on suggestions for dealing with the lack of clarity surrounding the taxation of reimbursements and simplifying the rules for honoraria paid to volunteers, with a view to making compliance less onerous for those in the non-profit sector.

“The paper suggests a number of options for making payments which reimburse volunteers for the costs they incur exempt from tax.

“The aim is to make the law relating to these types of payments clear and simple to apply, so that the compliance costs for volunteers and non-profit organisations are minimised as much as possible.

“Feedback on the issues explored in the issues paper will be considered by the government as part of its policy of further building a culture of charitable giving in New Zealand,” Mr Dunne said.

The closing date for submissions on the options raised in the issues paper is 14 December 2007.

The issues paper, The tax treatment of honoraria and reimbursements paid to volunteers, is published at


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Erebus Memorial In Parnell

Social media can be a wonderful tool for bringing people together in a common cause. It can also be a seedbed and spreader of mis-information on a community-wide scale. To which category do the protests against the siting of an Erebus memorial (to the 257 New Zealanders who died in that tragedy) in a secluded corner of a Parnell park happen to belong? IMO, it is clearly the latter, and the reasons for thinking so are explained below... More>>


National: Proposed Hate Speech Laws A Step Too Far

Reports of the Government’s proposed new hate speech laws go a step too far and risk sacrificing the freedoms New Zealanders enjoy, National’s Justice spokesperson Simon Bridges says. “The reforms are supposedly including protections to every ... More>>


Agriculture: Government To Phase Out Live Exports By Sea

The Government has announced that the export of livestock by sea will cease following a transition period of up to two years, said Agriculture Minister Damien O’Connor. “At the heart of our decision is upholding New Zealand’s reputation for high ... More>>


Norman Gemmell: New Zealand’s New Housing Policy Is Really Just A New Tax Package — And It’s A Shambles

Norman Gemmell , Te Herenga Waka — Victoria University of Wellington Economists like to talk about “optimal policy instruments” — essentially, policies that achieve their objectives more effectively or efficiently than the alternatives, and ... More>>

Claire Breen: ACC’s Policy Of Not Covering Birth Injuries Is One More Sign The System Is Overdue For Reform

Claire Breen , University of Waikato Recent media coverage of women not being able to get treatment for birth injuries highlights yet another example of gender bias in healthcare in New Zealand. More>>

Police: Police Accept Findings Of IPCA Report Into Photographs Taken At Checkpoint

Police accept the findings of a report by the Independent Police Conduct Authority (IPCA) relating to photographs taken at a checkpoint in Northland. On November 16, 2019, Police set up a checkpoint down the road from a fight night event in Ruakaka ... More>>


Health: Drug-Testing Law To Be Made Permanent

Interim legislation that is already proving to keep people safer from drugs will be made permanent, Health Minister Andrew Little says. More>>




InfoPages News Channels