Information Leaflet

Reimbursing allowances have also changed. It is now $3,932.85 for the year (see Standard Reimbursing Allowances).

From 1 July 2010 the stipend “package” to Presbyters includes an additional amount for medical insurance. The premium will increase from 1 July 2023 from $189.63 to $215.74 per month giving a total premium of $2,588.88 for the 2023-2024 financial year. This applies to all stationed presbyters, including part time and non-stipendiary presbyters unless the Presbyter has opted not to be part of the scheme. For any person who opts not to be part of the scheme there is no payment in lieu.

The Parish is responsible for the payment of the premium of the basic policy provided by the Church as provided in the previous paragraph.

Any costs for policy enhancements beyond the basic policy provided by the Church are at the Presbyter’s expense and will be deducted from the gross stipend payment.

This was a Decision of Conference 2007.

In the Auckland City Council area, and some others, water rates are charged separately. The owner of the property, be it parish or Presbyter or other landlord is responsible for the water rates. Any dispute over excessive water rates should in the first instance be discussed with the Synod Superintendent, who may in turn seek advice from the General Secretary.

The Stipend Review Committee wish to reiterate that the book and resourcing allowance is not a discretionary fund and parishes must reimburse up to the maximum amount stipulated (on production of receipts) which for the year commencing 1 July 2023 is $1,500.

Part time presbyters receive a pro rata payment of the full Book Allowance e.g., a half time Presbyter receives $750 and quarter time Presbyters the amount is $375.

The allowance MUST NOT be paid as a cash allowance through payroll or paid out in cash as a standard monthly allowance. It is a reimbursing allowance based upon receipts provided on actual expenditure incurred.

The details of how the allowance is to be paid and what type of material it covers can be found on under Other Allowances.

All stationed full time itinerant Presbyters are entitled to have a house provided for them.

Parishes are encouraged to house a stationed part time Presbyter in the Parsonage or if the parsonage is not available to pay a pro rata share of a full time rental payment for the use of the presbyter’s own home (see Leaflet No. 26 and also Bricks and Mortar).

The Inland Revenue Department recognises housing as a taxable entitlement and therefore requires it to be taxed as part of the monetary remuneration received by the Presbyter. This tax calculation is for the Church supplying a parsonage (whether Church owned or rented).

The notional value of housing supplied is calculated at one tenth of stipend, this is added onto the standard stipend salary to calculate the tax payable. Once the tax is calculated the “notional value” amount is then deducted to balance back to the basic stipend. Please note that no ‘cash’ changes hands, it is purely done this way to ensure the correct tax is paid. No accounting entries are required either. It is an “in” and an “out”.

Please refer to Information Leaflet No. 26 and Bricks and Mortar for further information regarding the application of notional value of housing and housing allowances especially when two or more Presbyters share the same accommodation.

[Note: This is a summary only. The full requirements are in Information Leaflet No. 26 and Bricks and Mortar]

In 2008 Conference resolved:

1. To adopt provisions to allow Parishes and Boards to choose to rent the presbyters own home to meet their requirement to provide suitable accommodation for a full time stationed Presbyter.

Note: For part time stationed presbyters, a pro rata payment applies.

The guidelines are to be as follows:

Options:

1. Presbyter lives in parsonage.
2. Parish leases house from Presbyter [if appropriate].
3. Parish leases house on the open market.

In each case Bricks and Mortar gives guidance to the standard of housing required for Church provided accommodation. The tax effect of each of these options is also different.

This process assumes that the Parish, Presbyter and Synod Superintendent have agreed that the presbyters home is to be leased by the Parish and therefore the home meets the requirements of presbyters housing as required by the Church as set out in Bricks and Mortar. The Law Book at section 2: 23.4.1 provides:

Where a Minister does not wish to live in accommodation provided by the Church, such Minister shall apply to the Synod Superintendent for permission to live in other accommodation. Before granting such permission, the Superintendent must be satisfied that availability for stationing and ministerial effectiveness will not be diminished by such Minister residing in other accommodation.

The lease payable to the Presbyter will be the median of the market rental of appropriate accommodation that is available within a reasonable radius of the worship centre or within a location determined by the congregation and the Synod. What is a ‘reasonable radius of the worship centre’ will need to be determined on a case by case basis as it is dependent upon the situation and region (urban versus rural setting) that the Presbyter is appointed to.

In setting the house lease payment the median of the market rental for an appropriate house as determined by the Department of Building and Housing should be used. [See www.tenancy.govt.nz/rent-bond-and-bills/market-rent/].

The house lease payment needs to also ensure that the market rental is reasonably commensurate with the duties of the Presbyter and for the location in which they perform their duties.

1. A lease agreement MUST be signed between the Parish and the Presbyter. A Parish Steward and the Synod Superintendent are the authorised representatives of the Church who should sign the lease agreement on behalf of the Church.
2. A sub lease agreement needs to be put into place between the Parish and the Presbyter in their relation as a ‘tenant’ and ‘subtenant’.
3. The parish is responsible for advising the Connexional Office whether they will be paying the Presbyter the own home allowance or the rental lease option. This must be advised to the Connexional Office no later than the 3rd of the month. Failure to advise the Connexional office may disrupt the Presbyter’s stipend payment through Connexional Payroll as adjustments need to be made to the Housing Allowances paid to Presbyters.

1. Once the rental aspects of the housing have been dealt with, the house is to be treated as a parsonage for Income Tax purposes. That is on the same basis as if the Minister was living in the Parsonage.
2. When a change to the housing situation of a Presbyter occurs, the Parish should complete the “PRESBYTER FORM”, available from the Connexional Office, and tick the box marked “Living in a Church provided Parsonage” as “Yes” or “No” as is appropriate.
3. Lease payments are not part of the stipend and should be paid by way of an automatic payment from the parish to the presbyter. These will come through accounts payable.

As a rental payment, rather than an allowance the payment of tax on money received will be the Presbyters responsibility. We would strongly advise presbyters to seek professional advice.

The Inland Revenue Department has a publication which deals with rental properties. It is available on the IRD’s website and is called Rental Income (IR264). It is strongly suggested that parishes and presbyters have a copy of this document.

The following are offered as information for Treasurers and Presbyters.

Please Note: Each Presbyter must complete an IR330 tax declaration form when a change is made to the tax code. The sample calculation is only applicable for those people with an ‘M’ tax code with PAYE taken from the IRD online PAYE calculator. For other tax codes, such as ‘S’ or ‘M SL’, ‘ME’, refer to the online PAYE Calculator.
(https://www.ird.govt.nz/employing-staff/deductions-from-income/deductions-from-salary-and-wages)

In addition, Presbyters are entitled to be reimbursed for:

• Travel 
• Book and Resourcing Allowance
• Supervision 

The following are offered as information for Treasurers and Presbyters and is applicable should the minister choose not to utilise new housing payment or if the house is provided by a third party, e.g., house provided by spouse’s employer. 

Please Note: Each Presbyter must complete an IR330 tax declaration form when a change is made to the tax code. The sample calculation is only applicable for those people with an ‘M’ tax code with PAYE taken from the IRD online PAYE calculator. For other tax codes, such as ‘S’ or ‘M SL’, ‘ME’, refer to the online and check out the PAYE Calculator.

(https://www.ird.govt.nz/employing-staff/deductions-from-income/deductions-from-salary-and-wages)

In addition, Presbyters are entitled to be reimbursed for:

• Travel 
• Book and Resourcing Allowance
• Supervision