support expenditure scheme (CDSE)
Community development and
support expenditure scheme (CDSE)
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Overview
The Community Development and Support Expenditure (CDSE) Scheme, provides registered clubs in NSW with tax rebates (up to 1.5% of their gaming machine profits over $1million) when they spend an equivalent amount on community development and support.
The CDSE Scheme was first introduced in 1998. Since then over $538 million has been provided by registered clubs participating in the Scheme to their local communities to support schools, charities, sporting groups, agencies working with the disadvantaged and health services.
The Gaming Machine Tax Act 2001 outlines the legislative arrangements for the granting of a rebate of gaming machine tax levied on registered clubs. Under the Act, a tax rebate is made available to registered clubs of up to 1.5% of their gaming machine profits over $1 million provided that the Casino, Liquor and Gaming Control Authority is satisfied that an equivalent amount has been applied to expenditure on community development and support.
In the Act, a distinction is made between two classes of expenditure:- Category 1 - expenditure on specific community welfare and social services, community development, community health services and employment assistance activities; and
- Category 2 - expenditure on other community development and support services.
To qualify for the gaming machine tax rebate of 1.5%, clubs must contribute at least 50% of those funds to Category 1 purposes, with the remainder allocated to Category 2 purposes. Category 1 expenditure in excess of 50% may be used to cover shortfalls in Category 2, but the reverse does not apply.
Schedule 1 to the Act outlines matters that must be provided for in the Guidelines for the CDSE Scheme. Those mandatory matters are:- the minimum proportion of profits to be expended on Category 1 projects and services;
- the community priorities identified by CDSE Local Committees in relation to Category 1 projects and services;
- the advertising in newspapers across the State by ClubsNSW indicating that registered clubs are seeking applications for CDSE projects; and
- the accountability steps to be taken by registered clubs when claiming gaming machine tax reduction on the basis of CDSE funding.
