The latest government policy updates for NZ charities

Recent months have seen a large number of changes, in the regulatory sense, for NZ charities and non-profit organisations.

We recently used an AI programme to check whether we are missing any changes and updates. Here we reproduce the response (from Perplexity AI) in full noting, as always with AI, that any conclusions and information should be checked before being relied upon.

What are the latest government policy updates for NZ charities?

The latest New Zealand government policy updates for charities focus on paused tax reforms, new obligations from the Charities Amendment Act, changes to officer definitions, streamlined reporting, and current consultation on taxation settings.

Charity and Not-for-Profit Taxation Changes

• The Government recently consulted on the biggest potential overhaul of charity taxation in decades, initially proposing to tax income from commercial activities unrelated to charities’ core purposes, tighten rules for donor-controlled charities, and review exemptions for member-based bodies.^[1][2][3]
• After widespread submissions and sector objections about the complexity and broad impact, Finance Minister Nicola Willis announced in May 2025 that no tax changes would be included in Budget 2025.^[4][5][6]
• The draft operational statement from Inland Revenue (open for feedback until June 25, 2025) clarifies when member transactions (like subscriptions) could be taxable, but major legislative change remains under consideration pending further review and consultation.^[7][4]

Amendments to the Charities Act 2005

• Key changes from the Charities Amendment Act (effective July 2024) include:
  • Expanded definition of “officer” to cover anyone significantly influencing charity decisions, regardless of their role or title (including corporate bodies, trustees, and management team members).^[8][9]
  • Minimum age for officers lowered to 16 (with at least one officer required to be over 18).^[9][8]
  • Governance procedures must now be formally reviewed at least every three years, with a documented process.^[8][9]
  • Streamlined reporting for very small charities and tougher standards for larger ones based on expense tiers.^[10]
  • Serious wrongdoing by officers can result in officer disqualification without deregistration of the charity, with a narrower definition of “serious wrongdoing”.^[9][8]
  • Appeals process reformed: charities can now appeal decisions to the Taxation Review Authority, not solely the High Court, increasing access to justice and broadening scope for challenges. Representatives can now appear in person and timeframes for appeal are more generous.^[11][8]

Administrative and Compliance Updates

• From April 2025, charities with only exempt income do not need to file income tax returns.^[12]
• Recordkeeping requirements allow keeping records in te reo Māori as of March 2025, and clarify obligations around documenting the source and use of donations (retain for at least 7 years).^[12]
• New Zealand charities must now ensure reporting matches the proper “tier” based on their total expenses, with recent clarification on tier assignment.^[10]

These represent the critical current compliance, regulatory, and tax changes affecting NZ charities as of September 2025.^{[2][4][1][11][8][9][12][10]}

1. https://www.markhams.co.nz/news/march-2025/the-charity-tax-shake-up-what-nz-businesses-and-no 
2. https://www.beehive.govt.nz/release/consultation-charity-tax-settings-open 
3. https://www.minterellison.co.nz/insights/potential-tax-changes-for-the-not-for-profit-sector-not-exactly-charitable
4. https://www.clubsnz.org.nz/members-area/news/update-on-charities-and-not-for-profit-tax-issues  
5. https://lawnews.nz/tax/comprehensive-objections-force-government-to-rethink-charities-tax/
6. https://thespinoff.co.nz/the-bulletin/10-06-2025/what-happened-to-nicola-williss-plan-for-charities-tax-reform
7. https://www.taxpolicy.ird.govt.nz/news/2025/submissions-taxation-and-the-not-for-profit-sector
8. https://www.willislegal.co.nz/charities-and-the-law-are-you-up-to-date-with-the-2024-changes     
9. https://www.tompkinswake.com/insights/knowledge/changes-to-the-charities-act-2005-what-you-need-to-know/    
10. https://www.charities.govt.nz/reporting-standards/which-tier-will-i-use  
11. https://www.dia.govt.nz/charitiesact 
12. https://www.ird.govt.nz/updates/news-folder/2025/return-filing-and-record-keeping—update-for-charities-and-not-for-profits  
13. https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/consultation/2025/taxation-and-the-not-for-profit-sector.pdf
14. https://not-for-profit.org.nz/will-charities-be-taxed/
15. https://www.charities.govt.nz/news-and-events/webinars-and-videosnga-wananga-a-ipurangi-me-nga-ataata/past-webinars/benefits-and-obligations-of-being-a-registered-charity
16. https://www.communitywaikato.org.nz/blog/legislativeshchanges
17. https://www.deloitte.com/nz/en/services/tax/perspectives/snapshots-of-recent-developments-august-2025.html
18. https://www.deloitte.com/nz/en/services/tax/perspectives/march-2025-taxation-and-the-not-for-profit-sector.html
19. https://www.russellmcveagh.com/insights-news/watching-brief-september-2025/
20. https://not-for-profit.org.nz/2025-a-new-year/
21. https://ct-register.companiesoffice.govt.nz