Our Response to Consultation Paper on Taxation and the NFP sector
- rlist7
- Apr 7
- 2 min read
The New Zealand government is consulting on proposed changes to taxation in the not-for-profit sector, including taxing business income generated by charities. As a specialist service provider to the charitable sector, we have raised significant concerns about the potential impact of these changes.
The charitable sector is woven into the fabric of society in Aotearoa New Zealand and embedded into everything we do including education and health services to a range of other community services, providing necessary tenets of life such as shelter, counselling, food banks, budgeting advice, to name a few, and with local and appropriate cultural solutions in fitting with our diverse cultural and localised requirements.
Our submission highlights real-world examples, such as churches struggling to maintain heritage buildings, social enterprises supporting marginalised groups, and charities providing housing and rehabilitation services. It also emphasises the importance of accumulated income for long-term sustainability, reserves, and capital projects.
We believe the proposed changes lack clarity, risk eroding public trust, and could undermine the sector’s ability to deliver public benefit.
Charities are vital contributors to New Zealand’s social, cultural, and environmental well-being. Business income is not a profit-driven sideline, but a mechanism woven into “how we do things” to increase resilience, independence, and mission delivery of the sector. A blanket approach to taxation of the sector’s business income would severely risk weakening the entire sector and reducing outcomes for the very people and communities that government and society rely on charities to support.
This consultation is critical for New Zealand’s charitable sector, as the proposed changes could have far-reaching consequences for communities and the public services charities provide.
We will keep you informed of any updates as and when they become available.
About Us
We’re here to help our clients be in the very best position to do the most good.
For over 20 years, we’ve built genuine partnerships with 180+ for-purpose organisations, helping them to do the most good by providing specialised services in property, accounting and advisory.
We’re deeply motivated to help others protect and enhance people, land and culture, totally committed to delivering the best professional support, because we understand the ripple effect – when we help you, we help you to help others.
If you would like to discuss our proposal in more detail or learn how we can help, please contact us.
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