Bill English MP
National Party Finance Spokesman
1 November 2007

Tax policy on volunteers identical to National

National Party Finance spokesman Bill English says community groups will welcome Labour’s move to mirror National’s policy on the tax treatment of volunteer expenses.

He is responding to the release of a discussion document by Michael Cullen and Peter Dunne which advocates a series of policies unveiled by National in May.

In May National said:

• All payments that reimburse volunteers for actual and reasonable expenses will be tax-free, regardless of the amount of the payment.

• Honoraria payments will be tax-free, up to an amount of $500 per year per person, as a way of expressing appreciation to people who generously give their time and expertise.

• Compare that with Labour’s new policy:

• Including all reimbursement payments to volunteers in the definition of “exempt income”.

• All honoraria up to a threshold would be treated as exempt income.

• Mr English says the terms appear almost identical.

“Labour sneeringly described National’s approach to turbo-charging the efforts of community groups as ‘Tory charity’.

“It’s taken Labour six months to roll out a discussion document that looks just like National’s policy. New Zealanders can now see which party is setting the tax agenda.”

Ends

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