Page 581 - Week 02 - Thursday, 20 February 2020

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contains a range of reforms that continue to meet this objective, including two transitional provisions to assist clubs in adapting to the new requirements of the scheme.

The bill also simplifies community contributions and reporting by clubs that operate at more than one venue. Currently, a club that operates more than one venue is required to make community contributions for each individual venue, to a minimum total of eight per cent of that venue’s net gaming machine revenue each reporting year. A contribution made by the club on behalf of all of its venues must be apportioned between each venue according to the number of gaming machines at each venue. Under the changes introduced by this bill, clubs will now be able to make community purpose contributions for all of their venues, without those restrictions.

Clubs will still need to make community purpose contributions of at least eight per cent of their net gaming machine revenue. This bill does not change that. But these amendments provide clubs with greater flexibility in making their minimum required contribution and reduce regulatory burdens associated with reporting community purpose contributions for clubs with multiple venues.

The government’s previous reforms to the community contributions scheme introduced a requirement for large clubs to make minimum community purpose contributions of money, rather than in-kind contributions, of at least six per cent of their net gaming revenue each reporting year. This change was made to maximise monetary support for community purposes.

Previous reforms also increased the community contributions shortfall tax from 100 per cent to 150 per cent, to emphasise the community’s expectation of that ongoing support. This tax was and is payable by any club that does not reach its minimum contribution amount.

The transitional provisions that are included in this bill will temporarily reduce large clubs’ minimum monetary contribution from six per cent to five per cent, and temporarily reduce the shortfall tax rate from 150 per cent to 100 per cent. These provisions will apply to clubs’ reporting years ending after 30 June 2019 and before 1 July 2021, to ensure that they are supported throughout the entire transition period. These changes are being made in direct response to feedback from clubs, including through a series of management round tables and presidents forums that I have hosted.

Finally, the bill contains a further review mechanism that will need to be completed before 30 November 2022, which will again consider whether the rebate is continuing to support clubs in their efforts to move to alternative revenue streams.

The changes in this bill demonstrate our commitment to listening to stakeholders and to implementing responsible measures tailored to the needs of the community.

Through these initiatives, the bill will continue to support clubs in their journey to adapt to the new requirements of the community contributions scheme. The bill retains the scheme’s integrity and provides a safe space for clubs to implement the new reporting and compliance requirements.


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