Full Breakdown
National MP Challenges Budget Cap on Charitable Donation Tax Credits
8/20/2026, 6:36:21 AM
Budget Change to Charitable Donation Credits
The 2024 New Zealand Budget introduced a rule that caps the amount of money individuals can donate while still qualifying for tax credits. Under the new measure, donations above the set threshold would no longer receive the tax-credit benefit, reducing the financial incentive for larger contributions to charities.
Greg Fleming’s Opposition
National Party MP for Maungakiekie, Greg Fleming, broke with his party to criticize the cap. Speaking at a charity-hosted event in Wellington, Fleming described the policy as having “zero logic,” arguing that it would make charitable giving less attractive and could leave charities financially strained. He said he is “advocating really, really hard” for a reversal of the rule and indicated that the government is already reviewing the change.
Potential Impact on Charities
According to Fleming, the cap could lead to reduced donation amounts, especially from high-net-worth donors who currently benefit from tax credits on larger gifts. Charities may face short-term cash-flow challenges if donors adjust their giving behavior to stay within the capped limit. The MP warned that the measure could result in charities being “out of pocket,” potentially affecting the delivery of services that rely on charitable funding.
Status of the Review
Fleming confirmed that the donation rule is under review and that work is underway to amend the policy. While no specific timeline was provided, the MP emphasized that the government is actively considering adjustments to address the concerns raised by the charitable sector.
