National MP Greg Fleming breaks ranks, criticises Budget tax change
Maungakiekie MP Greg Fleming insists the mistake is being fixed, but his revenue minister denies that claim.
National MP Greg Fleming has criticised the government's decision to cap charitable donation tax credits at $100,000, calling it "zero logic". Fleming, speaking at a charity sector political hui in Wellington, said work was underway to fix the cap but the minister responsible, Simon Watts, said the government's position had not changed.
The cap, introduced in the Budget, will affect around 350 donors when it comes into effect in April 2027, representing about 10% of donations claimed or $103 million. The Inland Revenue Department (IRD) argued that there was no conclusive evidence tax credits led to more giving and that there was a risk of misuse, such as claiming credits in advance of funds being applied to charitable purposes.
Fleming agreed that the cap could deter potential donors, especially at a time when the charity sector is struggling. He suggested there were other ways to address misuse, calling the cap a "sledgehammer to crack a walnut". Watts dismissed Fleming's comments, stating the government's position had not changed and that the change was necessary to tackle misuse for tax planning purposes.
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