Charity rebate limit to increase

The maximum rebate individuals can claim for donations to charity is to increase from $500 to $630 a year.

Finance Minister Michael Cullen also confirmed yesterday the Government's intention to create a Charities Commission to act both as a watchdog and supporter of the charitable sector.

Dr Cullen said the 26 per cent increase in the charitable donation rebate reflected the shift in inflation since 1990, when the rate was last adjusted.

Corporate deductions rules would also be liberalised so a wider range of companies could deduct for tax donations of up to 5 per cent of net income.