We are seeking feedback on our draft operational statement on mutual associations (including clubs and societies). This consultation closes on 11 December 2026.
The draft statement explains how income received from members of societies, clubs and other not-for-profit associations is taxed.
Payments from selling trading stock or services to members are treated the same way as payments from non-members. If the organisation’s net income is over $10,000, the payments should be included in a tax return.
Membership subscriptions, fees and levies are treated as exempt income except in limited circumstances.
The operational statement follows legislative changes proposed in the Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill. The approach in the statement would apply from 1 April 2027.
The draft statement is on our tax technical website, with details of how to give feedback.
Mutual associations (including clubs and societies) (taxtechnical.ird.govt.nz)
There's more information about the Bill on our tax policy website.