Taxation (Budget Measures) Bill (No 3)
This bill makes several tax changes announced in Budget 2026. It caps the donation tax credit at $100,000 of gifts per year. It simplifies Working for Families payments by removing some complicated income calculations and updating the rules about who qualifies when they travel overseas. It also closes a tax loophole where company loans to shareholders could go untaxed if the company was shut down, and removes a tax charge on overseas aircraft rental deals that was making it more expensive for NZ businesses to lease planes.
What this affects
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The bill caps the tax credit people can claim for charitable donations at $100,000 of gifts per year, and removes a tax cost on overseas aircraft rentals that was being passed on to NZ businesses.
This Bill introduces a maximum threshold of $100,000 of gifts qualifying for the donation tax credit (resulting in a maximum annual tax credit of $33,333.33).
In the context of a constrained global market for aircraft and aircraft parts, this presents a barrier to the leasing of these capital assets by New Zealand businesses.
non-resident contractors' tax is no longer payable in relation to dry leases of aircraft or aircraft parts
Progress through Parliament
Have your say
Submissions open once a bill reaches the select committee stage and the committee calls for them. In the meantime, you can write to your local MP about it.
Bill text sourced from legislation.govt.nz (Parliamentary Counsel Office). Arapono’s summary and breakdown are drafted with AI grounded in that official text and reviewed by an Arapono editor for accuracy and neutrality before publishing. Arapono is non-partisan and takes no position on this bill.