Currently, charities are exempt from paying any Fringe Benefit Tax, but a tax policy issues paper released recently by Inland Revenue outlines a range of suggestions for broadening the tax rules around salary and wage packages that include both cash and non-cash benefits.

IRD wants to introduce these changes from 1 April 2014.

The paper, Recognising salary trade-offs as income, focuses on salary or wages traded off for a non-cash benefit, not taxable under current rules. This happens when, for example, someone gets less cash in their pay packet and in compensation receives an untaxed non-cash benefit, such as a free car park or childcare.

“Salaries in our sector are not equitable,” says Social Development Partners’ Executive Director, Tina Reid.  “This should be recognised by Inland Revenue as an arm of government.”

“We urge the Government not to introduce further costs and compliance issues for charities in New Zealand, especially at a time when many are struggling to manage within their resources,” she says.

In the light of the IRD paper, Social Development Partners are preparing a submission to meet the 31 May deadline and are considering two angles, on which they would appreciate your comment and suggestion.

Details are available on the Social Development Partners website.

Part 3 of the Crown Entities Reform Bill abolishes the Charities Act 2005 and disestablishes the New Zealand Charities Commission, moving its functions to the Department of Internal Affairs.

The bill has been through its committee stages and is likely to come back into Parliament for debate this week (possibly tomorrow, 22 May 2012).

ANGOA and Philanthropy New Zealand, amongst others, submitted to the Select Committee expressing concern about the proposed changes. Philanthropy New Zealand, Social Development Partners, and Bishop’s Action Foundation have also written to Ministers jointly expressing their concerns. That joint letter is attached (PDF; 410 KB).

Letters have also been written by Charities Conference keynote speakers Lindsay Driscoll (UK) and Bob Wyatt (Canada),who expressed their concern at the impact of this move, and the poor timing of it (ahead of the planned review of the Charities Act).

ANGOA also has put out a press statement (PDF; 440 KB) which argues that Cabinet’s decision is based on major mistakes in their understanding about the nature of charities.

ANGOA suggests that the meetings and phone calls they have had with Ministers have made it clear that the ramifications of timing the changes ahead of the Charities Act Review were not especially well thought through. ANGOA also argues that apart from cost savings, there doesn’t appear to be overwhelming evidence to support the move.

There is also no legislative impediment preventing the Charities section of the Crown Entities Reform Bill from being removed – should the Government be persuaded to do so.

Reportedly most Ministers have not heard from constituents about the Bill. If your organisation feels strongly about this and you want to act, then the most relevant Ministers to write to are:

1. Hon. Jonathan Coleman, Minister for State Services (he took this role over from Minister Ryall, who initiated the Bill); email j.coleman@ministers.govt.nz
2. Hon. Bill English, Deputy Prime Minister and Minister of Finance; email b.english@ministers.govt.nz
3. Hon. Peter Dunne, Minister of Revenue and leader of United Future; email p.dunne@ministers.govt.nz
4. Hon Ruth Dyson, Chair of the Parliamentary Select Committee that considered the Crown Entities Reform Bill; email ruth.dyson@parliament.govt.nz
5. NZ First leader Winston Peters; email winston.peters@parliament.govt.nz
6. Māori Party Co-leader Hon Tariana Turia; email t.turia@ministers.govt.nz

Contacting  your local MP also is a good idea! You may find they have no idea what Cabinet has planned, so you are welcome to give them a copy of the information attached.

ANGOA have been hearing a very consistent set of messages from various parliamentary people:

• “It’s not too late.”
• “Minister’s haven’t heard people’s concerns about this.”
• “MPs are open to hearing the message.”
• “We have less than one more week to act.”

If you are concerned about government’s plan to axe the Charities Commission, ANGOA encourages you to express that concern in a letter to one of the Ministers above, or by raising it with your MP.

New Zealand Council of Social Services has initiated a new information service called Transition Times.

This regular memo is designed to keep not-for-profit organisations informed of government-led funding and priority changes affecting the social sector. NZCOSS’ goal is to present clear, non-judgemental statements of fact.

From the first issue:

Remember that even though much of this change is generated by the Government in Wellington, it ends up affecting everyone in other cities and regional areas of New Zealand too.  We hope to hear things quickly in Wellington and by this means to share what we can with you as quickly as we can.

We will attempt to ensure that anything we tell you will be absolutely accurate.  We are also unable at times to share information we know with you.  But rest assured as soon as we are able, we will pass what we can onto you all.

There have been very clear messages both from Deputy Prime Minister and Minister of finance Bill English, and also a lot of clarity from Minister Paul Bennett.  The issues and plans of this government have never been hidden from us.  Add to that the ongoing financial stresses on a global scale and everything this country spends is coming under review.  From now on, duplication of services and/or inability to provide results, will not be acceptable and in many cases, funding will be removed.  This means we all need to look around our communities and decide if our organisation is still relevant.  We need to consider if there are several services or organisations that provide similar work.  We need to consider if  joining up our back room services is something that will work for us, and we also need to consider where we can access funding other than from government.

There is no doubt however that government wants to move out of provision of services and for the community sector to step into that gap.  For this to work we need to be smarter, more professional and well-governed, with adequate checks and balances to ensure our services are beyond reproach.

Council of Social Services (Dunedin) will continue to monitor Transition Times, and pass on relevant information to our members via our website, email updates, and Newslink.

If you would like to receive our not-for-profit news updates, please subscribe via the sign-up form on the right of this page.

Take advantage of the opportunity to network with your social work colleagues and to discuss together key issues facing social work education in Aotearoa New Zealand.

Background

Open Polytechnic is coordinating industry consultation for the accreditation of their new four-year Bachelor of Social Work degree across Aotearoa New Zealand.

The intention is to provide a forum not only to receive your feedback on our programme – but to also provide valuable networking and a worthwhile knowledge opportunity for your time.

Agenda

• Welcome
• Open Polytechnic’s Bachelor of Social Work programme
• Snapshot – a presentation on recent findings in distance social work programmes (USA and UK) from Neil Ballantyne
• Small group discussion (group work using World Café Methodology)
• Full Delegate discussion

Facilitators

Karin Brown is the Open Polytechnic’s Social Work Programme Leader. Karin has a strong background in social work educational programmes and is an experienced practitioner.

Neil Ballantyne, consultant to the Bachelor of Social Work project at the Open Polytechnic and is also Visiting Senior Research Fellow at Glasgow School of Social Work. Neil is the Director of Learning Designs NZ.

Further details

This event is taking place in Dunedin on 13 June 2012. Further details are available on our training and events calendar.

In response to requests for copies of Green Paper submissions, Minister for Social Development Paula Bennett has explained why she is unable to make these publicly available:

Unfortunately we are unable to release submissions as we do not have express permission and as you can imagine some people have put very personal and private information in them. It is really important to me that I treat people’s submissions with the respect they deserve and with more than 9000 I don’t have the resources to contact everyone to get their permission or to make a judgement on what can and can’t be released.

If you have made a submission and are happy for it to be viewed by other parties, MP Jacinda Adern would appreciate receiving a copy.

Currently, 37% of schools in Otago participate in the Enviroschools programme. Following funding cuts in 2009, a funding increase has now been announced:

This morning Environment Minister Amy Adams and Māori Affairs Minister Pita Sharples announced this year’s budget would put $7.6m into the programme.

Sharples said the funding would enable Enviroschools and the Māori immersion approach – which teach children and their families to think and act sustainably – to continue.

“Because Enviroschools and Te Aho Tu Roa involve students, schools, whanau and communities, the results of this investment will be long-lasting.”

Source: TVNZ News

Otago Primary Principals’ Association president and Wakari School principal Brent Caldwell is enthused by the changes:

“It is encouraging to see that the Government has seen sense and acknowledged that to further enhance our country’s environmental sustainability practices, we need to focus on our children and work hard to develop their sense of place and strengthen respect for the environment.”

He said a quick tour around Otago schools would show that despite the 2009 cuts, many of them continued their mission unsupported, and had remained committed to ensuring the next generation was well-versed on their environmental responsibilities.

“This return of the funding will no doubt be a great relief to those involved in Enviroschools,” he said.

Source: Otago Daily Times

It is speculated that alcohol and tobacco taxes will be raised in the upcoming Budget:

“I think we will see some sin taxes rise – alcohol and cigarettes – these sorts of things,” said Cameron Bagrie, chief economist at ANZ National.

“Generally speaking the Government is keen on tax systems that drive economic incentives.”

A Ministry of Health discussion paper released last month modelled the impact on smokers’ behaviour if the price of a packet of 20 cigarettes rose to $100 over the next eight years from around $16 today, to help achieve the goal of a ‘smokefree New Zealand’ by 2025.

Source: TVNZ News

Public submissions have been invited on the following items of business. Copies of bills are available online at www.legislation.govt.nz.

The closing date for submissions is listed below:

• Administration of Community Sentences and Orders Bill
  Law and Order Committee, Friday 22 June 2012
• Child Support Amendment Bill
  Social Services Committee, Wednesday 20 June 2012

Please forward submissions by the due dates, either online – at www.parliament.govt.nz – or in writing to the address below. If you wish to appear before the committee, state this clearly in your submission and provide a name, daytime contact phone number, and email address.

Submissions generally become public and are published online. FOr further guidance on making a submission, read the publication Making a submission to a Parliamentary Select Commitee (PDF; 125 KB) or phone 04 817 9520.

Address for correspondence:

{Committee Name}
Parliament Buildings
Wellington 6160

To help celebrate their 25th anniversary, Volunteering Otago, in conjunction with the Star newspaper, is profiling different volunteers each month.

If you would like to nominate a volunteer, or group of volunteers to be profiled in one of the feature stores, please contact Anna Clere at Volunteering Otago:

Phone 03 471 6206
Email volunteerotago@gmail.com

The aim of this monthly feature is to bring awareness to volunteering in the community and to hightlight that volunteers come in all shapes and sizes and do many different things!

Volunteers with diversity in age, gender, ability, type of volunteering done, and length of time volunteering are being sought.

The feature stories will be written by one of the staff at the Star (and later in the year, students from Aoraki polytech will also be helping). It’s a great opportunity to get some free publicity for your organisation as well!

This week’s edition of TV3′s The Nation investigated Otorohanga’s approach to successfully reducing youth unemployment over the past seven years.

Nationally, youth unemployment is approximately 6.7%. Following recent initiatives, youth unemployment in Otorohanga has dropped from six to nine percent to effectively zero. The full story from The Nation is available to view on-demand.

A 2009 New Zealand Herald story also covered Otorohanga’s success story, observing:

The small King Country district (population 9500) has maintained zero registered unemployment of people under age 25 since November 2006.

Thanks to a unique apprentice support system and 10 other youth initiatives, it also claims a 75 per cent reduction in the number of youths caught by police in the two years after the new initiatives began in 2005.

Otorohanga’s website lists the following additional achievements:

• All Age Group unemployment benefits have been reduced by 35% from December 2007 to December 2008, and by 93% overall since 2005.
• Otorohanga now has strong businesses with access to local skilled young people.
• Otorohanga has become a tidy, vibrant community with minimal graffiti, vandalism or crime.
• There are minimal problems with frustrated, unemployed, and under-appreciated young people.

The full episode of this week’s The Nation also includes a panel discussion on the Otorohanga story, and its relevance to other centres in New Zealand.

Volunteering New Zealand (VNZ) leads the Managers of Volunteers Programme, a national initiative promoting the recognition and professional development of managers of volunteers. A key aim of the programme is to raise awareness amongst those who influence the delivery of volunteer services about the need for good management of them, and the critical role of managers of volunteers in achieving this.

One of the ways they are seeking to achieve this is through the development of best practice guidelines for volunteer-involving organisations.

For many organisations, the involvement of volunteers makes the difference between being able to achieve mission and objectives, and not achieving them. Volunteers, therefore, are a very precious resource. Behind every great volunteer programme, there is a manager / leader / coordinator of volunteers; someone who makes sure the right people are in the right roles doing the right thing, at the right time. Where would your organisation be without them?

Best practice guidelines will provide organisations with an aspirational set of targets and pointers on how to support managers of volunteers, get the best out of the volunteer programme and enhance your organisation’s attractiveness to volunteers and paid staff alike.

Volunteering New Zealand is keen to talk to organisations interested in piloting the best practice guidelines. Working with VNZ as a pilot organisation will give you the opportunity to demonstrate your commitment to being an organisation of choice for paid staff and volunteers alike.

For a time commitment of around five hours, you will have the chance to:

• Contribute in a meaningful way to a world-leading piece of development work for volunteer-involving organisations.
• Undertake an organisational health-check, at no cost to you.
• Become one of VNZ’s first champion organisations (volunteer-involving organisations that are innovative and committed to being the best they can be).

If  interested, please email VNZ at projects@volunteeringnz.org.nz or phone 04 384 3636.

Council of Social Services (Dunedin) Executive Officer Sue Russell presented an oral submission at the Dunedin City Council annual plan hearings, which was reported in today’s Otago Daily Times:

While Dunedin Council of Social Services executive officer Sue Russell said she had “nothing official”, the word was the Government would announce a major shakeup in the next two weeks.

“What I am hearing is this will turn the sector upside down.”

Speaking at the recent Dunedin City Council annual plan hearings, Ms Russell said she estimated about 200 community organisations in the city got all or part of their income from government grants or through service contract agreements.

They worked in the health, youth services, elderly services and disability services fields, but her tally excluded government departments, the Southern District Health Board, the University of Otago and Otago Polytechnic.

Ms Russell said from open data available on the Charities Commission website, the 200 organisations received about $351 million of government money annually.

Their total annual expenditure was $725 million – about 15% of Dunedin’s gross domestic product – and they collectively employed several thousands of full and part-time staff.

The community organisation sector was a “vibrant and important sector” and any funding changes or cuts would impact on the city, she said.

The full article is available on the Otago Daily Times website.

Council of Social Services (Dunedin) is continuing to monitor the effects of 2012 Budget announcements on the not-for-profit sector in Dunedin. The Budget 2012 section of our website is being frequently updated with relevant news as it comes to hand.

Education Minister Hekia Parata has announced that teacher-student ratios will change, to free up funds for initiatives designed to increase the quality of teaching:

Teachers would now be required to have a minimum post-graduate qualification to train. A qualification for prospective principals was also announced.

Ms Parata said that given the current economic climate, the “trade-off” in this Budget would see teacher-student ratios increased.

The ratio in Years 2 to 10 would be increased from a range of 1:23-1:29 to a fixed ratio of 1:27.5.

Students sitting NCEA exams in the last three years of secondary school would have fixed ratios of 1:17.3 instead of 1:17 and 1:23.

New entrant ratios would remain at 1:15.

She said the changes in student teacher ratios would free up an average $43m each year over the next four years.

Source: New Zealand Herald

Two of those who work with the disabled in Dunedin are welcoming additional government funding for services:

The extra money will be spent as follows:

• $54.7 million for home and community support services such as help with showering, getting dressed, preparing meals, and housework.
• $1.3 million one-off funding for additional cochlear implants and follow-up services from July.
• $20.7 million for supports such as hearing aids, hoists and wheelchair access.
• $57.6 million for those using residential support services.
• $9.4 million to give more people greater choice and control of the services they receive.

Any new funding was welcome, CCS Disability Action southern region manager Joy Gunn said.

“The area of disabilities is a growing one because of the ageing population and because young people with disabilities are living longer, productive lives … It looks like this funding will support those with disabilities living in the community of their choice, whether at home or in residential care.”

Dunedin Disabled Persons Assembly president Emma-Kate Lamb said extra funding was a “positive development” for the consumers of services.

“We are waiting to see how the details break down… but on the face of it, it is positive.”

Source: Otago Daily Times

A University of Otago public health expert has spoken out against the Government’s announcement that it will increase prescription charges from $3 to $5 per item:

Professor Tony Blakely, Director of the Burden of Disease Equity and Cost Effectiveness (BODE3) programme at the University of Otago, Wellington, says the trade-off is that activities such as care coordination in cancer services and IT systems to support delivery of care will be increased.

“First, will increasing funding on care coordination – things like patient navigators – increase survival among cancer patients? Yes – and probably reduce inequalities too.

“Second, will increasing prescription part charges worsen health? Yes – and definitely widen inequalities in health by impacting more on the disadvantaged.

“Third; is the trade-off between these two policies worth it? Probably not – other trade-offs and prioritisation decisions could have been considered with a better net outcome.”

The Dunedin City Council has launched a website to provide information and solicit feedback on the Draft Dunedin Economic Development Strategy: www.dunedineconomy.co.nz.

The website also includes a link to an online survey, which we encourage you to complete.

The complete Draft Economic Development Strategy can be downloaded in PDF format (1.3 MB).

Like other organisations, the Salvation Army says many of its welfare services are “approaching breaking point”.

Since 2008:

• Demand for food banks has risen by 70%.
• Demand for budget counselling is up 189%.
• Case loads of Salvation Army social workers rose by 94% nationwide.
• Case loads of Salvation Army social workers in the South Island division rose by over 270%.
• The number of problem gamblers using SkyCity Casino has increased by 300%.

Things are likely to get even busier with government changes in welfare and housing policies and SkyCity busily negotiating to get more pokie machines.

Planned harm minimisation technology might help, but “cuts to the number of pokie venues are needed if we’re serious about reducing problem gambling” says Professor Max Abbott, Director of AUT University’s Gambling and Addictions Research Centre.

Source: New Zealand Council of Christian Social Services

There has been a mixed response to the Court of Appeal’s ruling that parents of disabled children are entitled to be paid:

Government may appeal family caregivers victory

Parents who act as carers for their disabled children have welcomed a landmark victory in the Court of Appeal, but some fear the Government may appeal the decision.

The Court of Appeal today found that parents of disabled children are being unreasonably discriminated against by not being allowed to be paid carers.

The Government’s lawyers are reviewing the decision and have not ruled out the possibility of an appeal.

Source: TVNZ News

Carer parents could face tough choice after ruling

Parents who have been looking after their disabled children for free up until now have welcomed the decision, but the Head of the Disability Support Network, Claire Teague, said it may present other parents with tough decisions.

“It seems to me if you have family members paid, where care has traditionally been provided by trained people, then you are producing a conflict of interest for those families,” she said.

“There’s another motivation to care for them and keep them at home when independent supported living would be a better option for them.”

Source: TVNZ News

A new study by the University of Otago, Wellington shows how the problem of chronic low income for a significant number of New Zealand households co-exists with high income mobility for the rest.

The Dynamics of Income and Deprivation study details that 21% of respondents had an average (before tax) household income below $27,000 over the seven year period between 2002 and 2009. These chronic low income rates are higher for Māori, households where there are children and people aged over 65 years.

The research shows New Zealand is characterized by high annual income mobility, both up and down the scale. Gross household income can fluctuate markedly over a number of years, with 50% of families and households in the middle income group moving up or down income groups (quintiles) each year.

The study is based on an analysis of data on 18,000 people from the annual Survey of Family, Income and Employment (SoFIE) administered by Statistics New Zealand.

The report and summary can be accessed at
http://www.otago.ac.nz/wellington/research/hirp/projects/otago020394.html.

Informed is the weekly Council of Social Services (Dunedin) radio show, hosted by Alan Shanks.

Today Alan talked with Karen Ludwig from the North East Valley Community Garden.

This episode will soon be available via the Informed page, or you can download it by subscribing to the Informed podcast feed.

Council of Social Services warmly congratulates the Otago Excursion Train Trust on winning the Supreme Award at the TrustPower Dunedin Community Awards, which were held on Monday 7 May 2012.

The Otago Excursion Train Trust is the founder and joint owner of the Taieri Gorge Railway. The Trust is an active participant in the operation of the Railway, with its volunteer members staffing trains and assisting with railway maintenance.

The Christchurch Embassy won the Health and Wellbeing category. Council of Social Services (Dunedin) is proud to have been involved with this collaborative effort following the February 2011 earthquake. In addition to the dozens of individuals and local businesses who lent their support, other organisations involved with the Christchurch Embassy included:

• Dunedin City Council
• Ministry of Economic Development
• Neighbourhood Support
• Otago University Students’ Association (OUSA)
• St John

In total there were 102 outstanding entries in this year’s Dunedin Community Awards. A full list of winners follows:

Heritage and Environment

Winner: Otago Excursion Train Trust
Runner-up: Keep Dunedin Beautiful
Commendation: Orokonui Ecosanctuary

Health and Wellbeing

Winner: Christchurch Embassy
Runner-Up: St John
Commendation: Plunket Car Seat Rentals
Commendation: Women Across Cultures

Arts and Culture

Winner: Dunedin Fringe Arts Trust
Runner-Up: City of Dunedin Choir

Sport and Leisure

Winner: Otago Mountain Biking Club
Joint Runner-Up: Waikouaiti Rodeo Club
Joint Runner-Up: St Clair Surf Life Saving Club

Educational and Child/Youth Development

Winner: Koputai Kids After School Programme
Joint Runner-Up: Taieri Parents Centre
Joint Runner-Up: Ignite Consultants

Supreme Winner

Otago Excursion Train Trust

Update 18/05/2012: Minister Bennett has stated that she is unable to make the submissions publicly available.

Labour MP Jacinda Adern is struggling to get hold of submissions on the Green Paper for Vulnerable Children, and asked whether we could pass on a request to those who submitted earlier this year to send a copy of their submission to her directly.

Her aim is to form an idea of some of the wider concerns and suggestions that were made during the consultation; for example, issues around child poverty.

If you would like, please email a copy of your submission to Jacinda’s EA: clare-louise.chapman@parliament.govt.nz

Yesterday, 7 May 2012, the Dunedin City Council released the Draft Dunedin Economic Development Strategy (PDF; 1.3 MB).

Background

In 2010, the Dunedin City Council pulled together a small group of key economic partners – including representatives from the Otago Chamber of Commerce, Otago Southland Employers’ Association, Otago Polytechnic, University of Otago, Ngāi Tahu and central government – to help guide Dunedin’s economic future over the next 10 years.

Purpose

The Strategy recognises that, all things being equal, Dunedin faces the risk of losing business and people to other cities. Ultimately, the Strategy has been developed to increase incomes and job opportunities for Dunedin’s residents. The Steering Group researched the city’s current economic situation, reviewed strategies of similar cities, listened to locals, and talked with both national and international experts. Its members agreed on a shared vision and economic goals. Then – based on Dunedin’s strengths and challenges – they identified five Strategic Themes for the city to focus on during the next 10 years.

Vision

Dunedin will be one of the world’s great small cities. It will be known as a confident, competitive knowledge centre, where enterprise and creativity support a productive and sustainable city.

Economic Goals

There are two specific economic goals:

1. 10,000 extra jobs over 10 years (requiring employment growth of approximately 2 per cent per annum); and
2. An average $10,000 extra income for each person (requiring real GDP per capita to rise by around 2.5 per cent per annum).

Strategic Themes

The Strategy is built around five themes:

1. Increase business vitality
2. Encourage alliances for innovation
3. Position Dunedin as a magnet for skills and talent
4. Establish linkages beyond our borders
5. Showcase Dunedin as a compelling destination.

Priority Actions

Within each Strategic Theme, specific Actions have been identified. While there are a total of 13 Actions, five are flagged for immediate attention. These are:

1. Better support for exporting
2. Business and investment attraction plan
3. Dunedin ambassadors
4. Talent attraction programme
5. Project Shanghai.

What Happens Next?

For each of the five Strategic Themes, project teams will be formed to develop plans to achieve each theme’s set of Actions. The Steering Group will continue to oversee the Strategy and report progress to Council. This Strategy should inspire confidence in Dunedin’s economic future and galvanise efforts to see Dunedin become one of the world’s truly great small cities.

At 9.26am on Wednesday 26 September (9:26-26:9), Civil Defence aims to have one million participants in the New Zealand ShakeOut earthquake drill, the first ShakeOut drill held nationwide in any country!

Participants at home, work and school will be encouraged to practice “Drop, Cover and Hold”—the right action to take in an earthquake.

You can be kept informed about news relating to this event by regularly referring to the ShakeOut website. Further information about the ShakeOut will also be published on the Council of Social Services (Dunedin) website closer to the time.

General information about how to prepare for emergencies is available on the Civil Defence website.

The Young Foundation (UK) has developed a Community Action Tool Kit which seeks to answer the following questions:

• What makes people want to get involved in location action?
• What stops them from taking part?
• How do you devolve power and money to communities?
• How can communities work effectively with local authorities and public agencies?
• What makes people feel like they belong in a place?

The kit is available on the Young Foundation website.

Source: Christchurch COSS Bulletin