Grants and subsidies

What is a grant or subsidy?

A grant or subsidy can be a payment made to an individual or organisation to meet some of the expenses in carrying out business activities or in starting up a new business. It can also be a payment made to lower income families to help make childcare more affordable.

Some examples are:

• job creation incentives such as Job Plus or Taskforce Green
• new business opportunities such as Enterprise Allowance
• research grants to determine the feasibility of a new type of business
• one-off grants for purchasing assets
• grant-related suspensory loans - these are interest-free for a specified period, and are then converted to grants if and when the loan conditions are fulfilled
• childcare or Out of School Care and Recreation (OSCAR) subsidies.

Who pays a grant or subsidy?

Grants and subsidies can be paid out by government departments and local authorities. They can also be paid out by private organisations.

Some government departments that provide grants are:

• Work and Income
• Lottery Grants Board (New Zealand)
• Sport and Recreation New Zealand (SPARC)
• New Zealand Community Funding Agency
• Regional development boards
• Te Puni Kokiri
• Department of Labour
• Community employment groups
• Creative NZ.

Some non-government sources that provide grants are:

• Power board charitable trusts
• Local community trusts
• Pub charity
• Local hotel charitable trusts
• Private charitable trusts.

Date published: 23 Nov 2004

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