Frequently asked questions on ClubGrants expenditure.
Can a club claim a gaming machine tax rebate for funds provided under Category 3 to the ClubGRANTS Funds?
No. Club contributions to the Category 3 ClubGRANTS Fund are automatically allocated by the Government from the gaming machine tax that a club pays each year.
Can a club claim a gaming machine tax rebate for wages paid to carry out maintenance?
Yes. For example, if an employee is carrying out work on a facility which is associated with a club's core activity (such as work carried out on a club's bowling green or golf course), a club can claim a tax rebate under Category 2 for the wages paid to carry out the maintenance (paragraph 2.2 of the ClubGRANTS guidelines (PDF, 129KB)).
Can a club that is not a sports club or a leagues club allocate expenditure for professional sport purposes including National Rugby League?
Yes. All clubs can allocate Category 2 expenditure for professional sport purposes including the National Rugby League. However, monetary payments to professional or semi-professional sports persons and their coaches and managers are not claimable (paragraph 2.2 of the ClubGRANTS guidelines (PDF, 129KB)).
Clubs can provide funding for community sport.
Gaming Machines Act 2001 requires a club to enter into arrangements for problem gambling counselling services to be made available to club patrons.
As this is a mandatory requirement, clubs should not be able to claim a tax rebate for funds provided to services that provide problem gambling counselling services to its patrons.
Previously, clubs were able to claim tax rebates, however these tax rebates for funds provided to problem gambling counselling services are gradually being phased out (please see paragraph 2.3.3 of the ClubGrants Guidelines (PDF, 129KB)).
Expenditure cannot be provided for the conduct of club bingo (paragraph 2.3.5 of the ClubGRANTS guidelines (PDF, 129KB)) because it is conducted for the purpose of promoting a club's services.
For Charity Housie, the market value of a club providing a venue, equipment or a staff member for the conduct of Charity Housie is allowable in-kind expenditure under Category 1 or Category 2 provided the funds raised through the Charity Housie are expended on activities covered by the respective category (paragraph 2.3.5 of the ClubGRANTS guidelines (PDF, 129KB)). For example, if the expenditure is claimed under Category 1, then the funds raised through Charity Housie must be expended on activities or services covered by Category 1.
However, where a promoter of Charity Housie provides a club with an in-kind benefit to conduct Club Bingo, such as supplying staff, the club must deduct the market value of this in-kind benefit from any in-kind benefit that the club provides to the charity.
A tax rebate can be claimed under Category 2 for funding provided for upgrading buildings, improving access to buildings, or upgrading communications technology or connections to utilities for club facilities, provided that the building or facility is not primarily commercial in nature, is not related to gaming and is not operated on a for-profit basis (paragraph 2.2 of the ClubGRANTS guidelines (PDF, 129KB)).
The guidelines also permit expenditure under Category 2 on work which is carried out on facilities associated with a club's core activities (paragraph 2.2). such as a golf club's golf course and a bowling club's bowling green, including wages paid to staff to work on maintenance of the club's facilities.
In-kind expenditure is to be calculated at market value (paragraphs 2.1.5 and 2.2.2 of the ClubGRANTS guidelines (PDF, 129KB)).
This was a recommendation of the Independent Pricing and Regulatory Tribunal in June 2008. The Tribunal considered that the market value approach is best suited to measuring clubs' in-kind provision of goods and services as it assigns a commercial or market value to the good provided in-kind.
Local committees must adopt a rule that they must meet at least twice per year. A local committee may, if the Chairperson thinks fit, transact any of its business at a meeting at which members (or some members) participate by telephone, teleconferencing, email or other means (paragraph 6.4 of the ClubGRANTS guidelines (PDF, 129KB)).
Clubs are required to keep reports from benefiting organisations for five years (paragraph 4.7 of the ClubGRANTS guidelines (PDF, 129KB)). This is consistent with taxation law.
Clubs should make every attempt to maintain, on a publicly-accessible website, a list of programs, projects or services for which funding has been provided under Category 1 and Category 2. The list should be updated every six months (paragraph 4.10).
Clubs should advise their local committee of the URL of the webpage which contains the list (paragraph 6.3.1 of the ClubGRANTS guidelines (PDF, 129KB)).
Advice to potential applicants and qualifying clubs as to whether proposed projects or activities would be eligible Category 1 expenditure under the guidelines is available from Liquor & Gaming NSW.
Requests for such advice should be made in writing and sent to:
The Manager Gaming Systems PO Box 8325 Parramatta Westfield NSW 2150
Phone: 02 9842 8389 or 02 9842 8384 Fax: 02 9842 8675
ClubGRANTS Category 1 and 2 (tax deductions)