Honoraria, payments to board of trustee members or local body members
Board of trustee and local board members are generally entitled to a meeting fee set by the board.
Inland Revenue have established a benchmark for these fees, known as commonly paid amounts.
Some boards pay more than this. Some members choose not to take any payment.
Generally the amounts paid are as follows:
Commonly paid amounts | Inland Revenue maximum amounts | |
Trustee or local body members | $55 per meeting | $605 per year (11 meetings) |
Chairperson | $75 per meeting | $825 per year (11 meetings) |
For Income Related Rent purposes, commonly paid amounts are excluded from the calculation. However payments are included as assessable income when:
- they are in addition to the commonly paid amount (for example, travel) or
- the amount paid is above the commonly paid amount (for example, additional meetings held)
Example
Edith is a trustee on her school's board; she is paid $55 for each meeting or $605 per year. In addition to this she is paid $20 for travel to the meetings or $220 per year.
Calculate the assessable income as follows:
Attendance at each meeting (disregard) | $605 |
Travel to the meetings | $220 = A |
Divide additional amount for travel amount by 52 weeks (divide A by 52) | $4.23 = weekly amount to include in assessable income |
