Changes to Donation Tax Credit

What is the proposed changed?

• Maximum entitlement of donations for donation tax credit the lower of $100,000 or the donor’s taxable income

• With the current tax credit rate of 33%

• Maximum annual credit of $33,333.33

• Changes will apply on 1 April 2027

Why is this change needed?

• Encourage and reinforce charitable giving.

• Improve:

  • Value for money

  • Integrity of the tax system

  • Fiscal sustainability

Who would this affect?

• Roughly 350 donor entitlements

• 0.1% of donors