Turia welcomes giving through payroll

Tariana Turia has welcomed the passing of tax legislation that will make it easier for employees to give to community organisations through their pay.

Payroll giving is a voluntary scheme that enables donations to go directly from an individual donor's gross pay to their chosen community organisation listed on Inland Revenue's donee list. The donor can receive a tax credit straight away without supplying receipts and no longer has to wait until the end of the tax year.

"I am calling on employers and their staff to investigate payroll giving as a way of supporting the community and voluntary sector - it is an effective and efficient way to donate to donee organisations such as marae, schools and charities," Mrs Turia said.

Payroll giving offers community organisations an easy way to gain a steady income, Mrs Turia said.

"I encourage a culture of generosity and social investment by businesses and their employees. Uptake of payroll giving may take time, but I want to see it become a common way of supporting our communities."

During January 2010 the first businesses and employees will be able to sign up to payroll giving. More information will be sent to employers in the coming months.

The Government has also simplified the reimbursement of volunteer expenses and payment of honoraria, making reimbursements tax exempt. This will reduce tax and compliance costs for voluntary organisations and volunteers.

These changes build on the removal of donation tax credit and deduction thresholds for individual, businesses and Maori Authority donors on 1 April 2008.

Community organisations wanting to receive donations from payroll giving must register as a donee organisation with Inland Revenue.