Page last updated:
Thursday, March 06, 2014
The ClubGRANTS scheme provides registered clubs in NSW with tax rebates of up to 1.85% of their gaming machine profits over $1 million when they spend an equivalent amount on community development and support.
The Gaming Machine Tax Act 2001 allows the granting of a rebate of gaming machine tax payable by registered clubs. Under the Act, a tax rebate is made available to registered clubs provided the Independent Liquor & Gaming Authority is satisfied that an equivalent amount has been applied to expenditure on community development and support.
There are three classes of expenditure:
- Category 1 - expenditure on specific community welfare and social services, community development, community health services and employment assistance activities;
- Category 2 - expenditure on other community development and support services;
- Category 3 - contributions made to the ClubGRANTS Fund which are used to fund Category 3 infrastructure projects.
To qualify for the gaming machine tax rebate of 1.85%, clubs must contribute at least 0.75% to Category 1 purposes, with the remainder allocated to Category 2 purposes. Category 1 expenditure in excess of 0.75% may be used to cover shortfalls in Category 2, but the reverse does not apply.
In addition, a minimum of 0.4% of a club's gaming machine profits in excess of $1 million is allocated to the ClubGRANTS Fund each tax year. These amounts are automatically taken from the tax paid by clubs and transferred by the Government on behalf of clubs into the Fund at the end of each taxation year.
NOTE – Clubs are not required to make separate funding payments into the Category 3 ClubGRANTS Fund.
The ClubGRANTS Fund is a Statewide funding pool for large scale projects associated with sport, health and community infrastructure.
The guidelines for the ClubGRANTS scheme specify:
- the minimum proportion of profits to be expended on Category 1 projects and services;
- the community priorities identified by ClubGRANTS 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 Category 1 ClubGRANTS projects; and
- the accountability steps to be taken by registered clubs when claiming a gaming machine tax rebate on the basis of ClubGRANTS funding.
Complaints in regards to the ClubGRANTS scheme can be made to the Compliance Branch using the online complaints form - http://www.olgr.nsw.gov.au/website_complaints.asp. All details including the possible breach of the ClubGRANTS guidelines should be included when completing the online complaints form.