Do volunteers pay tax on reimbursements?

Question

Accepted Answer

Organisations often refund volunteers’ expenses like the cost of public transport or vehicle mileage, or give a meal allowance. Mileage can be calculated with the AA or IRD rates. A volunteer doesn’t pay tax on *reimbursements* provided they are for actual expenses or a reasonable estimate. ‘Honorarium’ payments are taxable income.
*immigration* - A visitor to New Zealand who receives ‘gain or reward’ must hold a work visa. If their reimbursements are not ‘actual and reasonable’ they may be considered gain or reward.
*driver licencing* - if you are carrying passengers in your own car, are reimbursed for expenses, and aren’t doing it for an area health board, local council or incorporated charitable organisation, then you need a passenger service licence and P endorsement on your licence.
If a volunteer is on a *benefit*, Work and Income may treat reimbursements that aren’t ‘actual and reasonable’ as income.
[Source: NZ Transport Agency’s Factsheet 18, “Volunteer Drivers and Exempt Passenger Services”, available from: www.nzta.govt.nz)

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