National MP says there is ‘zero’ logic behind Budget tax change

Author: Ethan Griffiths,
Publish Date: Thu, 20 Aug 2026, 3:11pm

National MP Greg Fleming says he's advocating for a change to the donations rule. Photo / Marty Melville

A National MP has broken party ranks to criticise a tax change included in this year’s Budget, saying a measure to cap the amount of money people can donate while being eligible for tax credits had “zero” logic behind it.

Speaking at an event hosted by charities in Wellington, Maungakiekie MP Greg Fleming said there was “zero” logic to the move to cap the threshold.

The change will make donating money to charity less financially attractive and could see charities out of pocket.

Fleming said he was pushing to have the rules changed and revealed they were currently under review.

“I’m advocating really, really hard for this, and I can assure you that work is underway to fix that.

“I have no problems with being quoted publicly on saying I think it was an error,” Fleming said.

Finance Minister Nicola Willis has been approached for comment.

Fleming added that he understood why the change was introduced, citing Inland Revenue (IRD) advice that identified a “misuse of donor advised funds”, but said there were many ways that could be fixed, rather than introducing a cap.

These funds were a problem because in some cases donations were being made to charities that were controlled by the donor.

“It was a sledgehammer to crack a walnut,” he said.

Fleming said his party actually “wanted more philanthropy”, which might not be encouraged by this particular change.

Speaking to Newstalk ZB, Fleming said he had been talking to ministers and that the issue was being “reviewed”.

Fleming did not blame ministers for the issues he had with the tax change.

“[At the] end of the day, ministers rely on the advice of their officials. Officials aren’t omniscient,” he said.