This bill is currently before Parliament.
Budget, tax & economy
The bill removes the $2 minimum before donations to deductible gift recipients can be claimed as tax deductions.
The bill packages several Treasury tax-administration changes: making very small charitable donations deductible, reducing duplicated trust reporting, tidying Treasury laws and redirecting R&D tax support away from gambling and tobacco-related activity. Ministers presented it as a way to modernise the tax system while improving integrity and supporting the government’s philanthropy and MYEFO commitments.
The bill sits at the intersection of two policy threads: modernising tax administration and deciding what kinds of activity should receive public tax support. Its philanthropy measure responds to modern micro-donation habits and the goal of doubling giving by 2030, while its R&D measure follows concern that gambling and tobacco-related research can deepen public health and addiction harms.
The main criticism was not that the bill should fail, but that the R&D exclusion might be either too broad or not broad enough. Coalition speakers wanted committee scrutiny of how gambling is defined and whether excluding disfavoured sectors from the R&D incentive sets a precedent; crossbench critics wanted the gambling and tobacco exclusion to go further and remove the harm-minimisation carve-out for companies or entities funded by those industries.
Hon Dr Daniel Mulino MP introduced this bill. Supportive speeches so far have come from Labor.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
77 days
Updated 10 June 2026.
Meaning
The bill removes the $2 minimum before donations to deductible gift recipients can be claimed as tax deductions. This is aimed at small gifts such as checkout round-ups and applies to gifts or contributions made from 1 July 2024.
Trustees of closely held trusts would report quoted beneficiary tax file numbers in the trust tax return, instead of lodging a separate quarterly report. The change is intended to reduce compliance work and help the ATO pre-fill beneficiary returns.
The trust tax file numberA personal or entity identifier used by the ATO. Beneficiaries may quote it to a trustee, and the bill changes how trustees report it. changes apply to income years starting on or after 1 July 2026, while the R&D tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. exclusions apply to income years starting on or after 1 July 2025.
The bill excludes gambling, gambling-like, tobacco, nicotine and vaping-related activities from the research and development tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation., unless the activity is solely for harm minimisationResearch aimed solely at reducing harm, such as gambling harm or nicotine use. Under the bill, this narrow category can remain eligible for R&D support..
It also makes minor Treasury law maintenance changes, including corrections to competition law references, self-managed super fund public trustee arrangements, and wording in the ASIC Act.
The purpose of Schedule 1 to the Bill is to amend the Income Tax Assessment Act 1997 (ITAA 1997) to allow donors to claim a tax deduction on donations to Deductible Gift Recipients (DGRs) even if they are valued less than two dollars.Explanatory memorandum
Beneficiary TFNs will be required to be reported at the same time as the trust tax return is lodged for income years that the beneficiary is presently entitled to a share of income of the trust.Explanatory memorandum
section 202DP of the ITAA 1936 (about TFN reporting by trustees) apply to income years starting on or after 1 July 2026; and ... Schedule 4 to the Bill applies to income years starting on or after 1 July 2025.Explanatory memorandum
Schedule 4 to the Bill amends the ITAA 1997 to exclude R&D activities related to tobacco and gambling from the R&D Tax Incentive for income years starting on or after 1 July 2025, with the exception of activities conducted for the sole purpose of harm minimisation.Explanatory memorandum
Schedule 3 of the Bill makes minor and technical amendments across several pieces of legislation with the Treasury portfolio. These changes help keep the laws up to date and working as intended.Explanatory memorandum
Context
The bill sits at the intersection of two policy threads: modernising tax administration and deciding what kinds of activity should receive public tax support. Its philanthropy measure responds to modern micro-donation habits and the goal of doubling giving by 2030, while its R&D measure follows concern that gambling and tobacco-related research can deepen public health and addiction harms.
Productivity Commission report backed easier giving
The explanatory memorandum says the philanthropy schedule implements one recommendation from the Productivity Commission review connected to the government’s goal of doubling philanthropic giving by 2030.
Explanatory memorandum ↗ATO transparency report highlighted R&D tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. claims
The EM says the gambling and tobacco R&D measure followed the ATO’s first annual R&D Tax IncentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. Transparency Report, published in October 2024.
Explanatory memorandum ↗Government announced trust reporting and R&D eligibility measures
The EM links the trust reporting changes and the exclusion of gambling and tobacco-related R&D activities to measures announced in the 2024-25 Mid-Year Economic and Fiscal Outlook.
Explanatory memorandum ↗Bill introduced in the House
The bill was introduced with four schedules covering small charitable donations, closely held trustA trust with a small or controlled group of beneficiaries. The bill changes how trustees report quoted beneficiary tax file numbers to the ATO. TFNA personal or entity identifier used by the ATO. Beneficiaries may quote it to a trustee, and the bill changes how trustees report it. reporting, minor Treasury law maintenance and R&D tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. exclusions.
Parliament of Australia ↗House debate focused on gambling and tobacco R&D
Speakers generally did not oppose the bill, but several sought stronger scrutiny or a broader exclusion for gambling and tobacco-linked research.
House second reading debate ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Members debated the bill in principle before the chamber decided whether to keep considering it.
The House referred the bill to the Federation Chamber, where detailed second-reading debate can continue.
Referred to Federation Chamber
Members debated the bill in principle before the chamber decided whether to keep considering it.
Second reading debate
The APH bill page records referral to the Senate Economics Legislation Committee, with a committee report date of 30 April 2026. The local bundle does not include the report’s conclusions.
Referred to committee
APH bill page notesKey criticism
The main criticism was not that the bill should fail, but that the R&D exclusion might be either too broad or not broad enough. Coalition speakers wanted committee scrutiny of how gambling is defined and whether excluding disfavoured sectors from the R&D incentive sets a precedent; crossbench critics wanted the gambling and tobacco exclusion to go further and remove the harm-minimisation carve-out for companies or entities funded by those industries.
The available speeches show broad support or non-opposition, with criticism focused on the design and scope of Schedule 4.
Too much discretion over excluded sectors
The Coalition wanted Senate committee scrutiny of whether the government was setting a precedent by deciding that particular sectors should lose R&D tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. eligibility and how gambling-related activity would be defined.
Harm-minimisation carve-out too generous
Some crossbench speakers supported the bill but argued gambling and tobacco companies should not be able to receive R&D tax support even where the work is framed as harm minimisationResearch aimed solely at reducing harm, such as gambling harm or nicotine use. Under the bill, this narrow category can remain eligible for R&D support..
Gambling reform still too limited
Critics said excluding R&D subsidies did not answer broader gambling harm concerns, including delayed action on gambling advertising and the Murphy report recommendations.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Daniel Mulino introduced the bill as a Treasury package to support small donations, streamline trust tax file numberA personal or entity identifier used by the ATO. Beneficiaries may quote it to a trustee, and the bill changes how trustees report it. reporting, maintain Treasury laws and stop public R&D support going to gambling and tobacco-related work except for harm-minimisation research.
Read in Hansard ↗Rebekha Sharkie supported the bill but moved a second-reading amendment seeking a complete exclusion from R&D tax incentiveA tax offset program that supports eligible company research and development spending. This bill removes eligibility for gambling and tobacco-related work unless it is solely for harm minimisation. eligibility for gambling and tobacco companies and organisations funded by them.
Read in Hansard ↗Renee Coffey supported the bill, focusing on the social value of charities and the practical effect of removing the $2 threshold for small modern donations.
Read in Hansard ↗Jo Briskey supported the bill as practical tax system reform, saying it reduces everyday friction for charities, small businesses and taxpayers while keeping integrity measures in place.
Read in Hansard ↗All speeches by bloc
5 speakers · 5 support
“One of the strengths of our national life is the quiet, steady work done every day by charities and not-for-profits in communities right across Australia.”Read the full speech in Hansard ↗
“This legislation is about productivity—not productivity as a slogan but productivity as Australians experience it every day in how easy it is to comply with the tax system, to run a small business, to support a local charity or to innovate and invest for the future.”Read the full speech in Hansard ↗
“By encouraging microdonations, we're helping to achieve the government's goal of making it easier to give.”Read the full speech in Hansard ↗
“This legislation provides practical support to the government's goal of doubling that giving amount by the year 2030.”Read the full speech in Hansard ↗
“This bill amends the Treasury legislation to support philanthropic giving and strengthen the integrity of tax administration systems.”Read the full speech in Hansard ↗
2 speakers · 1 mixed · 1 unclear
“When you look at this legislation, the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026—Orwellian as it is called—it's about whether or not there are tax incentives that can be taken advantage of by tobacco and gambling companies.”Read the full speech in Hansard ↗
“The coalition is not opposing this bill—the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026—in this chamber, but in the Senate we are looking to refer it to the economics committee for further scrutiny.”Read the full speech in Hansard ↗
2 speakers · 2 mixed
“I support this bill and my amendment.”Read the full speech in Hansard ↗
“It is my position that this exemption should be removed.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
Members debated the bill in principle before the chamber decided whether to keep considering it.
House · Referred to Federation Chamber
Referred to Federation Chamber
The House referred the bill to the Federation Chamber, where detailed second-reading debate can continue.
House · Second reading debate
Second reading debate
Members debated the bill in principle before the chamber decided whether to keep considering it.
Senate Economics Legislation Committee
Referred to committee
The APH bill page records referral to the Senate Economics Legislation Committee, with a committee report date of 30 April 2026. The local bundle does not include the report’s conclusions.
Referred to Committee (1 Apr 2026): Senate Economics Legislation Committee; Committee report (30 Apr 2026)
APH bill page notes
