A couple of years ago PPL started this innovative project, a first for New Zealand. It is a way that people in a community can share their skills.
However the Lyttelton Time Bank has been sitting in a position of “unrealised potential” – waiting to really take off. But now this has all changed!

Since the Time Bank principle is new to New Zealand, there have been some hurdles that have needed to be crossed before the project could fly.

• A ruling from Inland Revenue was required to clarify the tax position. Would people doing these “favours” for one another be liable for tax? PPL has received a favourable ruling from the IRD stating,

As long as the primary purposes of the organisation are not changed by the activity of the Time Bank, the Time Bank comes within the constitution of Project Port Lyttelton, and anyone using the Time Bank facility is not doing so as a part of their taxable activity or business, Project Port Lyttelton will retain their approval for tax exempt status under section CW 33(1)(a)(ii) of the Income Tax Act 2004 as a District Improvements Society.
So as long as the work you offer to do within the Time Bank is not your income generating work then there is no tax involved.

• Central to success of a Time Bank is the role of Time Broker – the person who organises the whole time bank system locally.

This person keeps the records, arranges the exchanges, promotes the concept, introduces people, enrols members, organises social gatherings so that members and prospective members can get to know one another.
The Time Broker is a busy person. In fairness this role needs to be a paid position rather than a voluntary one. So here was the next hurdle – getting funding bodies to understand a concept that had not been used in New Zealand before and provide funds for the role. Generally, funders tend to be risk averse, wanting to be 100% sure that any grant they give will provide the goods that the applicant suggests it will. And up till now without a tax exemption ruling, funders haven’t been willing to support the project. So there have been delays while waiting for funding round outcomes.

• The Tindall Foundation – the philanthropic body set up by Stephen Tindall of The Warehouse is excited about the Lyttelton Time Bank.

This Foundation funds projects that support families and social services; that encourage enterprise and employment; that care for our environment and the preserving of biodiversity; that strengthen the third sector and that promote generosity and giving. The Time Bank concept fits all these desires of the Tindall Foundation, so it is keen to support the PPL project.
The Tindall Foundation wants to see Time Banks take off in New Zealand. The Lyttelton Time Bank is a prototype for New Zealand. So funding is being made available for the part time broker’s salary for three years here in Lyttelton. This is a huge bonus for this community. This means the project can really start to move ahead. It will mean that the support team and the broker will be unencumbered by having to look for funding each year. By the time the three year period has passed, PPL’s income from the Farmers Market will be able to continue supporting the role.
So the outcomes the Tindall Foundation expects to see in three years are a well functioning Time Bank in Lyttelton and a growing awareness throughout New Zealand of Time Banking with its many advantages to all sorts of communities.

• Meanwhile another bonus. -The Post Carbon Institute has chosen PPL to trial the new Time Bank software developed by Time Banks US.

This means there will be two ways for Time Bankers to access help from the Time Bank – by a phone call and the broker arranges the details of the task, or those with internet connection can do it that way.

This Lyttelton Project is being watched by many people in many different places. We are thankful to all the support we have recieved and excited to boost our trading in Time Dollars to strengthen our community!