COMMUNITY CONTRIBUTIONS
Guide for CLUBS
Required community contributions
The
Gaming
Machine Act 2004 
(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
Section166 of the Gaming Machine Act 2004)
Multi-licence Corporations
Where a
corporation has more than one licensed club, a record of
community contribution 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)
Corporations that have more than one club must submit an individual financial report for each club and may either:
· submit an individual community contributions pro-forma report for each club; or
· submit one community contributions pro-forma report 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 rule of thumb, In-kind contributions are generally 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 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.
Example of one community contributions pro-forma submitted for a group of clubs:
| 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) 15% 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 | Lifeline | 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:
ü gross revenue from gaming machines;
ü net revenue from gaming machines;
ü total value of community contributions; and
ü total value of contributions to registered (political) parties and their associated political entities.
Contributions Pro-Formas
It is requested that licensees
use the pro-formas and ensure
that the entries are both legible and as descriptive as
possible.
Pro-formas for
submission of the Community Contributions information are
available in PDF, WORD and EXCEL at the
forms section of the Commission’s website.
If no
contribution was made to a category then the pro-forma should be
completed with a “nil” or “n/a”.
Where more
than one page is used for a category, each page should be
clearly numbered, eg. page 3 of 4 and a sub-total should be
shown on each page.
Include a covering letter providing
contact details should any records need to be clarified.
The provision of the following details will be of valuable assistance in the processing of reports for all stakeholders:
§ contact name and position in company;
§ contact phone number and/or email address;
§
the name and title to
whom final correspondence is to be
addressed (e.g. Chief Executive Officer, Secretary
Manager,
Director, Finance Manager or General Manager); and
§ a current postal address.
Contribution Guidelines
To assist
licensees determine the eligibility or category of a
contribution the guidelines are provided at part 9 of the Gaming
Machine Regulation 2004
In accordance with the “Guidelines for approving contributions” as community contributions, eligible contributions are those claimed under the following categories:
ü Charitable and Social Welfare;
ü Sport and Recreation;
ü Non-Profit; and
ü Community Infrastructure.
Sub-Groups
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.
A pro-forma
for Women’s Sport is supplied and licensees are to
report 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).
Problem Gambling
Problem gambling community contributions means community contributions that the Commission is satisfied will assist in:
(a) alleviating problem gambling; or
(b) alleviating the disadvantages that arise from problem gambling; or
(c) providing information about problem gambling.
Claims can be made under this category for eligible expenditure that occurred at any time during the financial year.
A pro-forma
for Problem Gambling is supplied and 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).
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:
· www.citizensadvice.org.au; and
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 records and a 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
Ø Who must submit a Community Contributions Report?
Ø When and how must a Community Contributions Report be submitted?
Ø
Gross
Gaming Machine Revenue (GGMR)
Ø
Net
Gaming Machine revenue (NGMR)
Ø
Contributions
to Registered Political Parties and their Associated Political
Entities
Ø
Can
I claim the costs of maintaining the club’s oval?
Ø
Can
I claim room hire provided free of charge?
Ø
Can I
provide alcohol as a contribution?
Ø
How
long do I need to keep the records relating to the club’s
community contributions?
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.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.
All Community Contributions Reports MUST be submitted on the approved forms, which are then forwarded to the Commission by either of the following means:
§ Electronically to grc@act.gov.au; or
§
by post to ACT Gambling and Racing
Commission
PO Box 214
Civic Square ACT
2608.
Gross
Gaming Machine Revenue (GGMR)
GGMR is defined in the legislation as all revenue derived by a licensee or person from the operation of gaming machines LESS:
-
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 schedule Fs for the financial year plus or minus any adjustments made throughout the year)
Net
Gaming Machine Revenue (NGMR)
NGMR is defined in the legislation as 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 groups 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.
Contributions
to Registered Political Parties and their Associated Political
Entities
The community contributions financial report (part H) requires licensees to report any contributions made to Registered Political Parties and their Associated Political Entities.
Associated
Entities is defined in the Electoral Act 1992 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 1 or more registered parties or MLAs.
This figure is separate to any contributions declared in a licensee’s pro-forma and 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.
Our venue organises collections for the Red Cross each year. Are these donations 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.
I have donated used furniture from the venue to a local charity. Can this be claimed as a community contribution?
Yes, provided the amount claimed is the written-down (depreciated) value or market value of the goods donated.
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.
I have purchased raffle tickets from a charitable organisation on behalf of the venue. Is this an eligible contribution?
No, you cannot claim the cost of raffle tickets purchased.
Our venue has purchased tickets to a charitable organisation's fundraising dinner. Is this 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.auCan
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 2001
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?
5 years.
In accordance
with the Gambling and Racing Control Act 1999
the
provisions of the Taxation Administration Act 1999 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 31 July of the reported financial year.
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