Some community housing entities may qualify for a tax exemption on their income and be granted donee status if their beneficiaries or clients meet certain thresholds.
Beneficiaries or clients’ income entry threshold
Thresholds for the tax exemption are based on the applicant’s taxable income in the 12-month period before the date of the application.
- For a single person this threshold is $85,000.
- For a group of people this threshold is $130,000 combined income.
Beneficiaries or clients’ asset entry threshold
If an applicant has not held an estate in land before only the income cap applies. The total asset value is unlimited.
If an applicant has previously held an estate in land, there are asset caps depending on where they want to purchase a home.
|If the applicant buys a home in||then the asset value is|
|Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District or Queenstown Lakes District||$100,000|
|other areas in New Zealand||$80,000|
The 15% threshold
If more than 15% of beneficiaries or clients do not meet the entry threshold the entity will not qualify. This means they will not be granted an income tax exemption and donee status.