Submission on taxation of the not-for-profit sector

Cooperative Business NZ made this submission to the Inland Revenue Department as part of its consultation on the taxation of the not-for-profit sector. The submission focused on issues most relevant to member-owned organisations, particularly friendly societies and credit unions.

The submission set out the distinctive role these entities play in supporting financial inclusion, community wellbeing, and mutual support, and highlighted the potential impacts of changes to existing tax concessions.

Submission at a glance

• Submitted by: Cooperative Business NZ 

• Date: March 2025 

• Submitted to: Inland Revenue Department 

• Policy area: Taxation of the not-for-profit sector 

• Format: Written submission (PDF) 

CBNZ position

The submission outlined the view that existing tax concessions for friendly societies and credit unions recognise their unique structure and purpose, and support their ability to reinvest surpluses for the benefit of members and communities. It noted that removing these concessions could increase costs, reduce accessibility, and undermine the social and economic role these organisations play.

Key issues addressed

• The role of friendly societies and credit unions as member-owned, not-for-profit organisations

• The importance of existing tax concessions in supporting financial inclusion

• Potential impacts of removing tax exemptions on member services and affordability

• Broader implications for community wellbeing and social resilience

Read more submissions