Pitched as protecting charities that rely on large gifts, TOP's policy would undo the Budget 2026 cap on donations that qualify for the donation tax credit and instead order a full review of charity regulation.

📋 TOP: Charitable giving tax credit cap, June 2026 →

What it does

• Repeals the $100,000 annual cap on donations eligible for the 33% donation tax credit, introduced in Budget 2026. Before the cap, the credit was limited only by a donor's taxable income.
• Refers charity regulation to the Law Commission for a comprehensive, independent review, including clear definitions of charitable status and public benefit, tighter rules on donor control and related-party dealings, and minimum distribution requirements.
• TOP calls the cap a blunt instrument that could put services such as food banks and health research at risk, and says the Government projected it would save $51.8 million over three years.
• The party restated the pledge in its October 2026 arts and culture statement.

The debate

• Revenue Minister Simon Watts said the cap would keep the donation tax credit scheme financially sustainable and limit tax planning risks when donors give to charities they control. Finance Minister Nicola Willis said people making large donations were doing it because they believed in the cause, not for a tax break.