PM Encourage Tax Cut Donations

March 20, 2009 New Zealand Taxation  No comments

New Zealand Prime Minister John Key has suggested that if people are in a position to, that they donate their upcoming tax cuts to charity.

In an effort to foster what he calls an “American giving culture”, Prime Minister John Key has said that those who could not bring themselves to spend the new tax cuts, or are otherwise unlikely to need it survive, should consider donating it to charity. He also pointed to a figure claiming that almost 60% of those donating in any given year are likely to not know about the tax rebate that they are automatically entitled to.

While at the moment only a third of what you donate to charity can be claimed as a tax rebate, there have been other suggestions surfacing in regards to possible new rebates. Key amongst these was revealed by Revenue Minister Peter Dunne recently. Other than just donating money, “gifts in kind” such as items, artwork or even professional time could be claimed under a rebate. Though no official word on this has been given, and will not be likely until after the release of the budget.