Should charities (including taxes) be taxed on business income?

Inland Revenue is currently conducting a review and public consultation about taxation of not-for-profits and charities (which include churches), and will then give advice to the Government. The consultation document contains 15 questions on which comment is sought. The consultation closes on 31 March 2025.

The review is not about singling out churches and Christian charities, and not about taxing donation income. An important issue is whether the ‘business’ income of charities should remain tax-exempt. That does have implications for many churches and Christian charities. Interestingly, the Inland Revenue paper argues against claims that charity-owned businesses have an unfair advantage by being tax-exempt.

It is important that Christian responses to the document are informed and well-reasoned, and that they emphasise how much good many churches and charities do for New Zealand society, and how some changes in tax policy could adversely undermine some of that beneficial work. For evidence of that work, see the Church Sector in this report from Faith In Action.

For more information on the tax review,see the InterChurch Bureau summary here and Steven Moe and the Parry Field Law video here and the Comments on Consultation Paper. Here is link to earlier paper on context and policy thinking as well as the video of first session held about that paper.

Papua New Guinea constitutionally declares itself a Christian country

A few days ago, the parliament of Papua New Guinea voted strongly for PNG to be officially a Christian country. Predictably, overseas secular commentators were unimpressed. However, PNG’s Prime Minister James Marape noted that, while his country respects religious freedom, it is Christian faith and values that hold his nation together.

The South Pacific Evangelical Alliance (part of the W.E.A)

Pray for next week’s inaugural General Assembly of the South Pacific Evangelical Alliance March 24-28, being held in Port Moresby, Papua New Guinea. NZCN’s Rachael Afeaki-Taumoepeau [SPEA General Secretary] and Esther Tredoux are key organisers, Stuart Lange is a speaker, and several other New Zealand people will be there, along with Gospel-minded people from across the Pacific. Pray that the witness of Gospel faith across the Pacific may be strengthened.

Author: Dr Stuart Lange

Dr Stuart Lange is the National Director of the NZCN and is a Senior Research Fellow at Laidlaw College, where he was formerly Vice Principal. Stuart wrote and presented the historical DVD documentary Te Rongopai: 200 years of the Gospel in New Zealand, 1814-2014.