The ban by NSW RSL began in August 2017 amid concerns compliance failures could expose potentially hundreds of volunteers to penalties under the law.

"When it became clear during the Bergin Inquiry that we had an issue with fundraising compliance, there was very little data available to the new RSL leadership that showed the extent or nature of fundraising at a local level - it took nearly a year to collect that information from our sub-Branches," RSL NSW President James Brown said.

President of the Port Macquarie RSL Sub-branch Greg Laird never supported the ban.

"We have always complied, our audits are done every year by a qualified auditor and he said we comply in every way for the requirements for fundraising," Mr Laird said.

Mr Laird said the the RSL Women's Auxiliary had been particularly affected by the ban.

"They felt so let down by the fact that they couldn't fundraise because that is one of their main purposes," he said.

"I think they will now be dancing in the streets."

Mr Laird said RSL Sub-branches have many expenses.

"It costs $25, 000 to put on ANZAC day commemorations alone."

President of the Port Macquarie RSL Women's Auxiliary Lee Tet Fong said it was "very good news".

"Fundraising is the reason people join the Auxiliary," she said.

The fundraising goes towards veterans' welfare such as funding hospital visits, funerals and so forth.

Ms Tet Fong said the ban had a terrible impact on some Auxiliaries in NSW.

"It certainly dirtied our image in the public," she said.

"A couple of people can ruin a lot of people's lives.

"Some of the Auxiliaries collapsed."