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Budget 2022: The Government has announced Budget 2022, which includes changes to child support payments. Find out more on our Tax Policy website

Budget 2022: The Government has announced a Cost of Living Payment, which will be paid from 1 August 2022. You do not need to apply for this payment. If you are eligible, we’ll pay it into your bank account. Find out more

Special income tax rules apply to local authorities.

Taxable income

A local authority must pay income tax on non-dividend income (for example, rent and management fees) received from a:

  • council-controlled organisation (CCO)
  • port company
  • energy company.

Exempt income

For local authorities, this income is exempt:

  • rates received from ratepayers
  • income from core services (like parking fees)
  • dividends received from a CCO, port company or energy company.

Limitations on income tax deductions 

Gifts

Local authorities cannot claim a deduction for charitable or other public-benefit gifts made to donee organisations.

Imputation

Local authorities cannot convert unused imputation credits to a tax loss.

Last updated: 08 Mar 2022
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