Survey shows need for National's tax rebate policy
A survey of giving by Kiwis showing that while we are generous we lag behind some other comparable nations, illustrates the need for National's charity tax policy, says National Party Leader John Key.
Figures from the Giving New Zealand report show that while Kiwis are more generous than Australians and Canadians, we lag behind British and Americans.
"National's policy, which I announced last month, is designed to support private giving and would be a big boost to New Zealand's giving tradition," says Mr Key. "We want to reinforce that culture of giving through our tax policy."
The policy will:
Remove the $1,890 cap on charitable donations. Donations of any amount, up to an individual's total net income, will be eligible for the 33.3% rebate.
Remove the 5% cap on the level of donations that can be deducted by companies and Maori Authorities, meaning they will be allowed to claim a deduction for any level of charitable donation. In addition, all businesses, not just publicly listed or just widely held companies, will be able to claim deductions.
Remove gift duty from donations to charitable organisations.
"New Zealand's tax treatment of charitable giving is miserly compared to some other countries.
"Our changes, costing around $60-$90 million a year in lost revenue, will mostly benefit New Zealand-focused charities, but the rebate will also apply, as it does now, to many overseas aid organisations.
"National estimates that its policy will result in a big boost to donations to the charitable sector."
Figures from the Giving New Zealand report show that while Kiwis are more generous than Australians and Canadians, we lag behind British and Americans.
"National's policy, which I announced last month, is designed to support private giving and would be a big boost to New Zealand's giving tradition," says Mr Key. "We want to reinforce that culture of giving through our tax policy."
The policy will:
Remove the $1,890 cap on charitable donations. Donations of any amount, up to an individual's total net income, will be eligible for the 33.3% rebate.
Remove the 5% cap on the level of donations that can be deducted by companies and Maori Authorities, meaning they will be allowed to claim a deduction for any level of charitable donation. In addition, all businesses, not just publicly listed or just widely held companies, will be able to claim deductions.
Remove gift duty from donations to charitable organisations.
"New Zealand's tax treatment of charitable giving is miserly compared to some other countries.
"Our changes, costing around $60-$90 million a year in lost revenue, will mostly benefit New Zealand-focused charities, but the rebate will also apply, as it does now, to many overseas aid organisations.
"National estimates that its policy will result in a big boost to donations to the charitable sector."