Charities get $1.4m from payroll donations

Revenue Minister Peter Dunne. Photo / Mark Mitchell

Charities have received $1.4 million in the first year of a payroll giving scheme.

The scheme, promoted by Revenue Minister Peter Dunne's United Future Party, enables employers to deduct donations from workers' pay, with the donor getting an immediate tax credit instead of having to wait until the end of the tax year to claim it. The money is sent directly to the chosen charity.

Since the programme came into effect in January last year $1.4 million had been donated, Mr Dunne said today.

"In the first 12 months, we've seen support for payroll giving grow and it is only going to build further as more people learn more about it."

Mr Dunne said the numbers varied from month to month, and were particularly pleasing in December when people appeared to get into the Christmas spirit.

"In that month alone, more than 1400 workers donated nearly $200,000 to charities and in return got immediate tax credits back of about $66,000," he said.

"This scheme is a win-win for all concerned, and after I pushed for it for years, it is really gratifying to see it taking off now."

- NZPA