KEY POINTS:
New Zealand's richest woman is bringing her charity home from Australia after a Budget surprise which means donors will be able to claim back far higher tax rebates.
Philanthropist Jan Cameron, founder of the Kathmandu clothing business, crossed the Tasman after selling her share of the company for $200 million. She gave generously to Australian causes and challenged the New Zealand Government to change the rules on charitable donations.
Yesterday, in a move mirroring National's charities policy, Revenue Minister Peter Dunne announced the Government would remove the $1890 cap on rebates for charitable donations from April next year.
Under the changes, donations of any amount, up to an individual's total net income, would be eligible for a 33.3 per cent rebate.
Jan Cameron said from Australia: "It's great what the Government has done to encourage philanthropy by removing the tax obstacles.
"Hopefully it will encourage wealthy families and individuals to set up foundations, as has been occurring in Australia for a long time."
Ms Cameron said her cash and investments would come back to New Zealand, and all income and profits would go to New Zealand charities.
She already has given $2.5 million to the Hillary Institute, a charitable foundation that will give a $1 million prize every four years to outstanding mid-career leaders.
Mr Dunne said the moves would make it easier for people to give their time and money to charity.
"If you look at groups like Plunket and Red Cross, those sorts of bodies, there has been a long-standing tradition in New Zealand of support for those. We want to encourage people to donate more."
Further moves to encourage giving, most notably payroll giving - where employees have regular charitable donations taken from their pay - are to be considered by the Government this year.
National Party leader John Key was quick to claim his proposals had been usurped by the Government.
"When I announced this, Steve Maharey said it was Tory charity.
"When I announced it, Helen Clark said, 'Tax cuts for the rich'. And Michael Cullen gave a speech and said that the only thing that will work is the redemptive power of the state.
"It wasn't in the discussion document, National put it up, and when you're imploding in the polls you will steal anything you can from this side of the House because we're the only people making sense."
Charities welcomed the tax changes, which they called a welcome Budget surprise.
Salvation Army social services director Major Campbell Roberts said it was "a very significant thing".
Red Cross chief executive John Ware welcomed the change and especially the removal of the tax refund threshold.
