The United Way charity says the biggest benefit to come out of a newly passed Taxation Bill is a change to rules on giving to charity via payroll.
Revenue Minister Peter Dunne says employees can now make regular contributions to charity from their pay and receive an immediate tax refund on their donations each pay day.
Previously donation receipts had to be collected so tax refunds could be claimed at the end of the year.
Under the new rules, United Way chief executive Don Oliver says if someone donates $10 they will instantly receive about $3 back.
He says the change will encourage more people to donate via the payroll system.
The bill passed its final stages in Parliament this week.
Revenue Minister Peter Dunne says it will make it easier for volunteers and community groups to meet their tax obligations and reduce associated costs.
The new legislation will also give tax breaks to companies who donate to charity.