Second-class certainty: sticky plaster tax policy?

Thursday, 2 July 2015, 4:27 pm
Press Release: Community Housing Aotearoa

Second-class certainty: sticky plaster tax policy?

The Government’s announcement about tax provisions to remedy issues over the charitable status of community housing providers is causing concern in the sector, according to Scott Figenshow, Director of Community Housing Aotearoa, the umbrella organisation for the sector.

“Housing is the number one issue in New Zealand and the Government continues to struggle with it.”

He says the Government solution creates a new regulatory regime and doesn’t resolve the fundamental issues around housing and the work of the modern NGO charitable sector.

“We have met with Minister Bennett and MBIE officials, and are confident they understood that the best solution was to amend the Charities Act as the place where the certainty should be confirmed. Why the rest of cabinet didn’t see it this way when they had evidence to support it as the right approach is very frustrating.”

“We are worried that implementation of this decision, once it goes through the parliamentary process, may lead to more upheaval within the sector at the very time that we need to be focused on building more housing for those in need. Instead, trustees will need to spend money and time navigating this new regime of tax exemption outside of the Charities Act. That may well require new trust deeds and consulting advice on how the transfer of assets is managed. That money would be better spent on meeting urgent housing need,” Mr Figenshow says.

“That Minister Bennett has finally gotten the government to a decision is an achievement, as the confusion around tax exemption and charitable status has been a festering sore for over four years and should have been fixed at the beginning of the reform programme,” Mr Figenshow says.

“We consider this announcement a first step but will continue to lobby for changes in the Charities Act. While we are pleased that they have chosen to use the Homestart levels rather than lower quartile levels, they have used a substandard policy approach to implement this.”

Mr Figenshow says the Government has got it wrong in saying that home ownership programmes are by definition non-charitable.

“If Ministers want to form a view on what is meant to be charitable then the proper democratic practice they should use is a formal review of the Charities Act.

“Although we have not seen any policy papers we look forward to being consulted on them as the body which represents the sector the Government wishes to work with. All New Zealanders understand the need to grow the number of homes available for the working poor, whether to rent or own.”

ENDS

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Community Housing Aotearoa

Nga Wharerau o Aotearoa

Community Housing Aotearoa is the peak body for New Zealand's community housing sector. Our 110 members build and manage affordable and social housing.

Our Vision is to make sure every New Zealander is well-housed in a warm, safe, dry and affordable home. This is a basic human right.

We work to support the growth and development of community housing providers to enable them to provide affordable and social housing.

We want to demonstrate that community housing is a critical element alongside private and government owned housing. No one can do it alone.

Community Housing Aotearoa aims to:

1. be the voice of the community housing sector
2. build capacity and foster collaboration
3. promote best practice in housing policy
4. champion quality and excellence.

Contact Community Housing Aotearoa

• Website - communityhousing.org.nz/
• Our Place - Learn how we think this can be achieved
• Phone - +64 4 385 8722
• About us - Our 2021 annual report is online here
• Email - support@communityhousing.org.nz
• Link - Members directory
• Physical Address - Level 11, Ranchhod Tower, 39 The Terrace/102-112 Lambton Quay, Wellington