Diocesan Assessment

Diocesan Assessment

Each parish contributes to the Diocese an assessment in accordance with the Statute. The assessment is to provide in part for the expenditure of Diocesan Council, for the expenses of the Synod, Provincial and General Synods, for such matters as may be authorised or required by statute, and for purposes incidental to any of the preceding matters.

The Diocesan assessment is calculated at different rates depending on whether the income is considered Ordinary or Commercial Income.

Ordinary Income

This is income of the Parish as defined under Section 66.3 of the Statute that is reported as follows, either:

1. net of related expenses:
   1. receipts from fetes, bazaars, all other special activities
   2. rental from rectories leased out by a parish an
   3. income from opportunity shops or similar
2. without deduction of expenses:
   1. offerings
   2. receipts from the hire of properties in use for normal purposes of a parish (e.g. hall, worship centre, courts)
   3. donations for buildings or any other purpose of the parish
   4. grain dividends and the like
   5. monies received from guilds and all other organisations in the parish
   6. legacies and bequests and
   7. income from all other sources (including all monies collected under the authority of the parish council) and
3. interest earned on all funds of the parish wherever invested or deposited.

Certain types of income are excluded from Ordinary Income, including Diocesan Grants, Loans, proceeds from the sale of assets, insurance proceeds, specifically exempted fund-raising purposes. If you wish to claim income as exempt, you should contact the Diocesan Office as the exemption in some situations is only available in limited circumstances or with prior approval from Diocesan Council.

Assessable Ordinary Income is arrived at after a standard deduction of $15,000 and deductions for specific items of approved expenditure including monies paid to approved missionary agencies, to Diocesan Council in support of other parishes, contributions to the Ordination Candidates Fund and support for Diocesan Council approved theological education and ministry formation programs.

Payments to approved missionary agencies must be made directly to those bodies. These agencies include the Anglican Board of Mission (ABM), Church Missionary Society (CMS), Bush Church Aid, SparkLit, Mission to Seafarers, Social Responsibilities Commission, Anglican EcoCare Commission.

The Ordinary Income is assessed at 15%.

Commercial Income

Commercial Income is defined under Section 66.6 of the Statute to include all rent and other income (net of operating expenses) from commercial properties (e.g. residential, industrial, office or retail) owned or held for the benefit of by the parish.

Parishes wishing to enter agreements with external parties that generate income for the Parish, for example lease agreements, should consult with the Diocesan Office to ensure that the classification of the income as Ordinary or Commercial Income is correctly evaluated.

Commercial Income is assessed at 35%.

Payment of Assessment

Each parish must pay monthly by direct debit one-twelfth of the annual budgeted ordinary income component and one-twelfth of the commercial income component of the assessment (if any). An adjusting payment is to be made at the end of the Diocesan accounting year where that is necessary, and any overpayment by a parish in a financial year shall be returned to the parish.

Diocesan Council has the power to vary or waive assessments in the event the parish has suffered a catastrophic event or is in another exceptional circumstance. If the parish believes they are in such a situation, this should be raised with your Archdeacon in the first instance

At the end of each year, following submission of the Parish’s annual financial returns, the actual contribution due for the year is calculated and any adjustment made by either payment of the balance due or crediting any overpayment to the following year’s contribution.

Interest is payable on overdue assessment payments at a rate equivalent to the then 90-day BBSW (bank bill swap rate) plus two percent (2%). This would be approximately 2.6% per annum based on rates current as at March 2020. Arrears are not determined until after receipt of the Parish Annual Financial Returns and interest will not apply till after 1 November of each year following notification to Parishes of their standing as regards assessments due to the diocese and allowing one month’s grace from the statutory date of 30 September.