12/10/2026
Running a sports club, charity or community organisation? Some welcome tax changes are on the horizon.
Following Budget 2026, the Government has announced changes designed to simplify tax obligations and reduce administration for New Zealand's not-for-profit sector.
Here's what's coming:
A higher tax-free threshold
The amount of net income eligible not-for-profits can earn without paying income tax is increasing from $1,000 to $10,000. This could make a significant difference for smaller community organisations.
Membership fees remain tax-free
Membership subscriptions and levies will generally remain exempt from income tax, providing reassurance for clubs and societies.
Changes to donation tax credits
Donors will be able to access their tax credits sooner in certain circumstances, with a new option to gift those credits directly to charities.
Less paperwork for smaller organisations
Eligible taxable not-for-profits with net income of $10,000 or less will generally no longer need to file an annual income tax return.
These changes are expected to take effect from the 2027–28 income year, with some measures introduced at different times.
And did you know you could save 25% on Xero?
If you run a registered charity or not-for-profit organisation, you may be eligible for 25% off your Xero subscription fees.
The discount is available on eligible business plans, subject to verification of your organisation's not-for-profit status.
Already using Xero? You may still qualify!
As a Xero Gold Partner, CB & Associates can also help you make the most of Xero and keep your organisation's finances running smoothly.
At CB & Associates, we know how important community organisations are to our local communities. If you're involved in running one and aren't sure how the changes might affect you, we're happy to help.
