Submission to Inland Revenue on Taxation and the Not-for-Profit Sector

31 March 2025

Inland Revenue has been consulting on possible changes to how not-for-profit (NFP) organisations, including clubs, are taxed. Clubs New Zealand, together Ashton Wheelans, have made a joint submission.

The consultation document conveyed that the government is looking at simplifying tax rules for not-for-profit organisations. While this is a good idea in theory, some of the proposed changes could create significant financial and compliance burdens for clubs.

Read Clubs New Zealand and Ashton Wheelan's joint submission here

Our Position

Clubs New Zealand strongly believe:

• Clubs should not face new tax burdens: Most clubs do not generate commercial profits. Taxing them could make it unaffordable to operate.
  
• Tax rules should be simplified: Many clubs struggle to understand the current tax rules, and some are unintentionally misapplying them.
  
• All clubs should be treated the same: Whether structured as Incorporated Societies or Friendly Societies, the tax system should be consistent.
  
• A fair system is needed: If clubs must pay tax, a threshold should apply so only larger, commercially profitable clubs are affected.
  
• Clubs reinvest in their communities: Any money clubs make goes back into maintaining facilities, supporting members, and benefiting local communities.

Next Steps

Clubs New Zealand will continue advocating for fair tax treatment. We will keep you updated on any developments and what actions clubs may need to take.