The recent Budget 2026 has seen the following changes, which should be of immense benefit to clubs.
The $10,000 tax-free threshold for not-for-profits (replacing the current $1,000 threshold) applies from the 2027–28 income year. So for Rotary clubs, that means it kicks in from 1 July 2027.
Budget 2026 also proposes a legislative filing exemption for taxable NFPs with income of $10,000 or less, unless Inland Revenue specifically requests a tax return be filed. It is interesting to note that the announcement confirmed the exemption on filing a return is currently in place for income under $1000, confirming advice given to clubs at the recent PELS, (which changed advice given by District at previous PELS as more information came to light on the matter).
(source: PwC Tax Tips)
Any questions, please refer them to Graham Evans, the current 9940 treasurer.
Worth noting these are still at the Budget announcement stage — the legislation to implement them hasn't passed yet.