Kiwis to give more, now the taxman gives more back

Charities and philanthropists alike are set to benefit from recent changes to tax laws that some say could make New Zealand a more giving nation.

A tax change that came into effect yesterday means the tax rebate cap for individuals, companies and Maori authorities has been removed.

Philanthropy New Zealand's Executive Director Robyn Scott says removing the cap means New Zealanders have a greater opportunity to be more generous, as they receive a larger rebate.

"For example a $5,000 personal donation will receive a $1665 tax rebate instead of the previous $630 or if you give $200,000 you will receive a $66,600 rebate, that was previously $630," she said.

Research released last year by Philanthropy New Zealand showed there was room for improving our generosity as a nation said Ms Scott.

According to Philanthropy New Zealand, approximately $1.3 billion was given away in 2005/2006 but only one third of that came from personal donations.

The rest was made up from statutory trusts and foundations.

Ms Scott says businesses have a lot to gain from this as well.

"They no longer need to be tied to sponsorship arrangements.

"Businesses can now give up to the limit of their income bringing them into line with individual giving," she said.

According to Ms Scott only seven per cent of businesses gave in 2005/2006.

"There is room for improvement there," she said.

- © Fairfax NZ News