National announces charity tax policy
John Key has announced a massive change to tax on charitable donations. Currently the law only allows you to claim $1,890 of donations at a 33.3% rebate (ie net $630) as an individual and companies are restricted to a 5%.cap.
National is abolishing both caps so that donations up to a person’s total net income will be eligible for the 33.3% rebate, The company cap is also lifted, plus extended to non publicly listed companies.
And finally gift duty on donations to charitable organisations has been abolished.
It is estimated this policy change could lead to a doubling of donations to the voluntary sector.
“In my Burnside speech I said I wanted to turbo-charge the efforts of private and community groups making a difference. This policy shows I mean it.
“Following that speech, Labour’s Steve Maharey attacked National using the sneering term ‘Tory charity’.
“This is the view that the State is always best placed to improve society by taxing people and spending the money on government programmes. This is the view that private charity is simply patronising.
“National thinks these views are appalling. It’s a fundamental part of a civilised society that people do things for one another, and do them selflessly, without being compelled, and without the Government organising it.
I think this is a great policy. It will make a huge difference to many charities.