Taxation changes could impact your organisation

There’s a government consultation that could reshape how for-purpose organisations operate. The IRD’s proposed tax changes for charities risk driving up compliance costs and undermining financial sustainability. It’s critical we speak up — every voice matters in shaping policy that affects our sector’s ability to serve our communities. Here is some help to do that. Submissions close 31 March 2025.

There’s an important consultation underway that could significantly affect our for-purpose sector. The IRD is proposing new tax measures for charities, and if introduced in their current form, they may lead to increased compliance costs, impact financial sustainability and innovation, and necessitate changes in the way we operate – by complicating the simple tax system for-purpose organisations currently operate under.

Understanding the proposed changes is important (resources to help below).

Although tax matters can seem complicated, it’s important to remember that every submission, no matter how brief, holds weight. If your organisation would struggle to maintain its work under more stringent tax rules, say so. If you foresee the proposals limiting the range or frequency of services you can provide, let IRD know. They are wanting to understand the impact these proposed changes might have. It doesn’t have to be long: a short statement, detailing your concerns in plain language, can add vital perspectives that policymakers need to hear.

There are a number of advocates who are working on our behalf to make the proposed tax changes easier to understand and to support making a submission easier for us all.

If time is tight or your capacity to comment directly is limited, you can still play an important role by joining the sector-wide submission led by Community Network Aotearoa. Adding your organisation’s name to a collective advocacy effort not only strengthens our shared voice but also signals broad support for ensuring that legislation supports, rather than impedes, our important work.
AND/OR you could share your views through a Hui E! & Volunteering NZ survey -all survey responses will be collated and sent to IRD.

Resources to support your submission:
Full consultation paper from IRD
Government’s Q&A on proposed changes
Briefing on Consultation Paper with Craig Fisher, Jenny Gill and Steven Moe – Youtube video
Charities and Tax Briefing Paper – Parry Field Lawyers
Steven Moe’s additional written insights

Submissions close 31 March 2025

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