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Inland Revenue

Tax Policy

Minimum payroll donation amount


(35 – PricewaterhouseCoopers, 37 – Inter-Church Working Group on Taxation)

There should be a minimum donation amount to any one recipient before the payroll-giving tax credit is available.


No minimum payroll donation amount was specified under the payroll-giving scheme. In line with the non-prescriptive nature of the proposed payroll giving scheme, it was decided that this would be left to the employer and employee to determine any minimum threshold.

Submissions noted that a minimum donation amount would be consistent with the current donation tax credit system. Under that system individuals must make a cash donation of at least $5 to a single donee organisation before the tax credit can be claimed at the end of the year.

Officials do not support prescribing a minimum payroll donation amount in legislation as we consider that this could deter employees from participating in payroll giving.


That the submission be declined.