Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Volunteer Expenses Law Change Welcomed

Media Release 23 September 2009

Volunteer Expenses Law Change Welcomed

The passing of legislation that makes clear payments to volunteers which are reimbursing their expenses are not taxable income has been welcomed by Volunteering New Zealand.

“This is an issue we have been pursuing with the Government over a number of years and it is very good news that necessary changes to the tax laws have been made” said Tim Burns, Executive Director of Volunteering NZ.

The new law provides that payments made to volunteers to reimburse them for expenses will be treated as exempt income. This will cover payments made to reimburse actual expenses or a reasonable estimate of the expenses being incurred. An example of the latter might be monthly fixed payments for travel costs when there is a regular pattern of travel and the average cost is known.

“The new legislation should encourage more community organisations to have the confidence to reimburse their volunteers for their out of pocket expenses” said Mr Burns.

“Volunteering NZ recommends such payments, if the community organisations have the available funding to do so. Volunteers give their time for no financial reward, but they should not have to pay expenses on top of that unless they choose to do so,” he said.

The provision allowing expenses to be reimbursed based on a reasonable estimate of expenses will make compliance with the law much simpler for community organisations as they will have less record keeping to do.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

However, there is one catch in the new law for organisations which have been paying what they call an honorarium, but with the intention of reimbursing expenses as well as recognising the time given by a volunteer. These organisations will need to ensure they can identify both elements. The payment for time given is the true honorarium and will be subject to withholding tax
Volunteering New Zealand has been most appreciative of the support from the Minister of Revenue Peter Dunne for the introduction and passing of this legislation.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On How Climate Change Threatens Cricket‘s Future

Well that didn’t last long, did it? Mere days after taking on what he called the “awesome responsibility” of being Prime Minister, Christopher Luxon has started blaming everyone else and complaining that he's inherited “economic vandalism on an unprecedented scale” - which is how most of us would describe his own coalition agreements, 100-Day Plan, and backdated $3 billion handout to landlords... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.