COMMUNITY CONTRIBUTIONS
Guide for CLUBS

Required community contributions
The Gaming Machine Act 2004external link (the Act) provides that the minimum total amount of community contributions required by all gaming machine licensed clubs is 7% of the licensee’s net revenue from gaming machines for the financial year, unless the Minister has determined a different percentage in respect of an individual club.
Any club that fails to meet the required minimum of 7% must pay a “Shortfall Tax” at the rate of 100% of the Community Contributions shortfall.

Records and Reporting
Each community contribution made by a licensee is to be recorded and a copy of the records, together with a financial report for the financial year, is to be submitted to the Commission by 31 July. (Refer Section 166 of the Gaming Machine Act 2004)external link

Multi-licence Corporations
Where a corporation has more than one licensed club, a record of community contributions must be maintained and reported in respect of each club. Where common expenditure is made on behalf of all the clubs of the corporation, the contribution must be allocated between the clubs in proportion to the number of gaming machines operated by each club.  (Refer Section 170 of the Gaming Machine Act 2004)external link

Corporations that have more than one club must submit an individual financial report for each club and may either:

  • submit an individual Community Contributions Report form for each club; or
  • submit one Community Contributions Report form provided that all the clubs are listed individually and any common expenditure is allocated proportionately.

Common expenditure DOES NOT mean expenditure specific to an individual club, for example, room hire or catering.  Only the relevant club may claim this expenditure as part of its community contributions.  This expenditure is NOT to be claimed as expenditure incurred by all the clubs in a group.  As a general rule, “In-kind” contributions are not common expenditure.

Common expenditure DOES mean a contribution made on behalf of all the clubs in the group, for example, $50,000 donated to the charity Canteen.  This expenditure may be allocated between the clubs in proportion to the number of machines operated by each club.

Sporting facility expenses may be claimed as a community contribution by the relevant club and is generally not a common expenditure for all clubs in a group.
An example of a single Community Contributions Report submitted for a group of clubs is provided below for illustrative purposes:


Date or period

Name of organisation receiving benefit

Monetary or In-Kind
(M or IK)

Specific purposes for which contribution used

 Amount or value $(Total) 
200 gaming machines

Club 1       (% of total contributed)
15%
30 gaming machines

Club 2       (% of total contributed)
35%
70 gaming machines

Club 3       (% of total contributed)
50%
100 gaming machines

1/12/06

RSPCA

M

Donation for food

500

75

175

250

5/3/07

Mission Australia

M

Problem Gambling

1500

225

525

750

6/4/07

Darts Club

IK

Room Hire for competition

$150

$150

Nil

Nil

3/5/07

Youth Choir

IK

Room Hire for practice

$100

Nil

$100

Nil

Financial Report
The financial report must specify:

Community Contributions Pro-formas
Licensees are to use the new Community Contributions Report form which is only available in Microsoft Excel format at the forms section of the Commission’s website. 
 
The new Community Contributions Report form must be completed and submitted in electronic form to the Commission (i.e. forms completed manually will no longer be accepted by the Commission). Simply complete the form using the Microsoft Excel application.

When and how must a Community Contributions Report be submitted?
All Community Contributions Reports (records of contributions retained under section 165 of the Act and the Financial Report as required by section 166 of the Act) MUST be submitted to reach the Commission no later than 31 July of the relevant financial year.

Licensees are to submit the electronic copy of their Community Contributions Report to the Commission on CD, USB-drive or via email.  The report is to be accompanied by a covering letter on the licensee’s letterhead (signed by an appropriately authorised person) formally submitting the report to the Commission.  Licensees submitting reports via email can attach a copy of the signed covering letter in PDF format to the email.  Community Contributions Reports may be submitted to the Commission by:

Email to :        gaming.operations@act.gov.au; or

Post to :          ACT Gambling & Racing Commission
                        PO Box 214
                        CIVIC SQUARE  ACT  2608


Contribution Guidelines
To assist licensees to determine the eligibility or category of a contribution the guidelines are provided at part 9 of the Gaming Machine Regulation 2004external link
In accordance with the “Guidelines for approving contributions” as community contributions, eligible contributions are those claimed under the following categories:

  • Charitable and Social Welfare;
  • Problem Gambling;
  • Sport and Recreation;
  • Women’s Sport;
  • Non-Profit; and
  • Community Infrastructure.

In order to encourage contributions to women’s sport and problem gambling issues the Minister has determined that contributions to these categories may be claimed as $4 for every $3 contributed.

Women's Sport
Women’s sport community contributions means community contributions that the Commission is satisfied will benefit or enhance women’s sport conducted in the ACT, or with participants mainly based in the ACT.

Claims can be made under this category for eligible expenditure that occurred at any time during the financial year.  Licensees can claim contributions as $4 for every $3 contributed. (Refer to section 171 of the Gaming Machine Act 2004) and section 65(3) of the Gaming Machine Regulation 2004)external link.

The worksheet in the Community Contributions Report form for ‘Women’s Sport’ will adjust all claims so that the amount claimed is $4.00 for every $3.00 contributed.

Problem Gambling
Problem gambling community contributions means community contributions that the Commission is satisfied will assist in:

  • alleviating problem gambling; or
  • alleviating the disadvantages that arise from problem gambling; or
  • providing information about problem gambling.

Claims can be made under this category for eligible expenditure that occurred at any time during the financial year.  Licensees can claim contributions as $4 for every $3 contributed. (Refer to section 171A of the Gaming Machine Act 2004 and section 64A of the Gaming Machine Regulation 2004).

The worksheet in the Community Contributions Report form for ‘Problem Gambling’ will adjust all claims so that the amount claimed is $4.00 for every $3.00 contributed.

Determining the eligibility of recipient organisations
The following web sites provide information that may assist a licensee to determine whether or not an organisation is not for profit or a charity:

Record Keeping Requirements for audit purposes
Licensees need to be aware that they are required to provide evidence of community contribution claims made in their Community Contribution Reports.  To assist licensees meet the minimum accountability requirements and to enable the verification of a community contribution claim, it is suggested that licensees keep the following information:

  • receipts of contributions forwarded by recipients;
  • invoices received for relevant expenditure;
  • evidence of journal entries for all expenditure;
  • bank statements and fully completed cheque stubs; and
  • any other evidence within the licensee’s accounting system that all monies claimed as contributions have been paid and accurately recorded.

In-kind contributions
A licensee may claim a contribution other than a monetary contribution as a community contribution only if the licensee has records that:
a)   set out how the value of the contribution was worked out; and
b)   provides evidence that the value worked out is based on the cost of providing the contribution or the market value of the contribution.


Late submissions
If a licensee fails to lodge a copy of their Community Contributions Report (including contribution records and the Financial Report) for the financial year by 31 July, section 166 of the Act provides for a penalty of up to $10,000 or disciplinary action may be taken against the licensee.

Frequently Asked Questions

Who must submit a Community Contributions Report?
All gaming machine licensees must submit a copy of the records of all community contributions made in the financial year, together with a Financial Report for the financial year. 
This also applies to licensees that either did not operate during the financial year or that did not make any contributions during the financial year.  These licensees MUST submit nil reports prior to the deadline of 31 July.

What is Gross Gaming Machine Revenue (GGMR)?

  • the amount of winnings for playing the machines paid or payable in accordance with the machine’s indicated prize scales (excluding linked jackpots); and
  • any amount set aside under a linked jackpot arrangement for payment of linked jackpots.

(In simple terms GGMR is the total of a venue’s gaming machine revenue from the monthly Gaming Machine Tax Return forms for the financial year plus or minus any adjustments made throughout the year).

What is Net Gaming Machine Revenue (NGMR)?
NGMR is GGMR LESS:

  • any amount of gaming machine tax payable on that revenue (before GST is deducted); and
  • 24% of the GGMR.

What is Common Expenditure?
Common expenditure can be defined as “group expenses not paid directly by individual venues but by the group’s head office”.
The following are some examples of the types of contribution that can be made on behalf of the group of venues i.e. common expenditure:

  • lump sum donations to a welfare organisation;
  • sporting sponsorship;
  • community festivals or events.

Do contributions to Registered Political Parties and their Associated Political Entities need to be declared?
The Community Contributions Report requires licensees to report any contributions made to Registered Political Parties and their Associated Political Entities on the worksheet titled ‘Political’.

Associated Entities is defined in the Electoral Act 1992external link as an entity that:

(a)    is controlled by 1 or more parties or MLAs; or
(b)   operates, completely or to a significant extent, for the benefit of more registered parties or MLAs.

This information refers to contributions made to any registered political parties or their associated political entities.  This does NOT refer to associate organisations of the licensee.

Can I claim the costs of maintaining the club’s oval?
Yes, you can claim the costs of maintaining a recreational or sporting facility provided:

  • the facility is available to the public, whether generally or only for limited periods; and
  • all revenue generated from the facility is deducted.

If a licensee intends to claim maintenance costs for either a recreational or sporting facility then the licensee needs to include information detailing the expenses derived and the revenue deducted.  This may be included as an attachment where necessary.

Can I claim room hire provided free of charge?
Yes, room hire provided to an eligible entity free of charge may be claimed as an
in-kind contribution however, the licensee must have records that –
(a)    set out how the value of the contribution was worked out; and
(b)   provides evidence that the value worked out is based on the cost of providing the contribution or the market value of the contribution.

Can I provide alcohol as a contribution?
No, you cannot claim the provision of alcoholic beverages either directly or indirectly through the provision of gifts, donations or prizes.

Can the collections organised by our venue for the Red Cross each year be claimed as eligible community contributions?
The funds raised from fundraising activities on behalf of charities or other community groups cannot be claimed as community contributions.  However, you can include in-kind (IK) contributions provided by the venue such as room hire, catering or printing expenses.

Can donations of used furniture from the venue to a local charity be claimed as a community contribution?
Yes, provided the amount claimed is the written-down (depreciated) value or market value of the goods donated.

If our venue organises a fundraising activity for Canteen every year, what can be claimed as a community contribution?
The venue organising the activity can claim the costs associated with organising the activity provided all revenue received from the activity is deducted from the total claimed.

Other licensed venues participating in the activity as an entrant can claim any donations required to participate provided the donation goes directly to the charitable organisation.

Are raffle tickets purchased from a charitable organisation on behalf of the venue an eligible contribution?
No, you cannot claim the cost of raffle tickets purchased.

Are tickets purchased on behalf of the venue to a charitable organisation's fundraising dinner able to be claimed as an eligible contribution?
Yes, this may be claimed as a community contribution.

Can I claim GST?
No, GST cannot be claimed as a part of a community contribution as a licensee claims GST in its tax return to the Australian Tax Office. 
For example, contributions that are charged GST, such as gala dinner tickets $1,100 ($1,000 ticket plus $100 GST), may not have the GST ($100) component included as a community contribution as the club is able to claim reimbursement of the GST through its BAS statement to the ATO.  Therefore, the club may only claim $1,000 as a community contribution.

Further information regarding donations and the GST is available from the ATO’s web site: www.ato.gov.au.

Can we claim contributions that are made during the club’s trading year, which does not necessarily coincide with the financial year (July through to June)?
No. The Legislation Act 2001external link defines the financial year as a period of 12 months beginning on 1 July.  Consequently, the Commission may only accept contributions made from 1 July through to 30 June.
Therefore, any contributions made outside of the relevant financial; year may be claimed in the next relevant Community Contributions Report submitted by the licensee.

How long do I need to keep the records relating to the club’s community contributions?
In accordance with the Gambling and Racing Control Act 1999external link the provisions of the Taxation Administration Act 1999external link apply in relation to a gaming law.  Therefore, the minimum period required to keep records relating to community contributions made by a gaming machine licensee is 5 years from 30 June of the reported financial year.

 

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