Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026; Second Reading

Summary

Currently, people can only claim a tax deduction when they donate to approved charities and community organisations (called Deductible Gift Recipients) if the donation is worth two dollars or more. This change amends the Income Tax Assessment Act 1997 to allow tax deductions for smaller donations — even those worth less than two dollars. This matters because it removes a barrier that discourages people from making small charitable gifts, and recognises that frequent small donations from many people can add up to meaningful support for charities, community groups, and other approved recipients.

What happens at this stage

The main debate on whether the chamber supports the broad purpose of the bill. Members speak to its overall merits and concerns rather than the fine print. The government outlines its policy intentions; the opposition and crossbench put their case. This is the stage that determines whether the bill proceeds at all.

Next: Consideration in Detail (House) or Committee of the Whole (Senate), where the bill is examined clause by clause