{"id":"nsw:act-2001-072","name":"Gaming Machine Tax Act 2001","slug":"gaming-machine-tax-act-2001","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"72 of 2001","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105110,"registerId":"nsw-act-2001-072-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Gaming Machine Tax Act 2001](/view/html/inforce/current/act-2001-072).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on a day or days to be appointed by proclamation.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Act—\n> > \n> > authorised CMS has the same meaning as in the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127).\n> > \n> > Authority means the Independent Liquor and Gaming Authority constituted under the [Gaming and Liquor Administration Act 2007](/view/html/inforce/current/act-2007-091).\n> > \n> > Chief Commissioner means the Chief Commissioner of State Revenue referred to in section 60 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097).\n> > \n> > CMS licensee means the holder of a CMS licence within the meaning of the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127).\n> > \n> > gaming machine means an approved gaming machine within the meaning of the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127).\n> > \n> > hotel, hotel licence and hotelier have the same meanings as in the [Liquor Act 2007](/view/html/inforce/current/act-2007-090).\n> > \n> > instalment period means a period prescribed by section 7.\n> > \n> > outgoings, in relation to a gaming machine, means—\n> > \n> > > (a) winnings, or\n> > \n> > > (b) progressive jackpot prizes, or\n> > \n> > > (c) for a gaming machine that is a part of an authorised linked gaming system operating under the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127), Part 10—the amount that is deducted from the gaming machine to build a prize for the authorised linked gaming system.\n> > \n> > profits, in relation to a gaming machine, means the excess of revenue from the machine over outgoings in relation to the machine.\n> > \n> > progressive jackpot prize means the amount to which a gaming machine player or other person is entitled to be paid—\n> > \n> > > (a) for the achievement by the player, at the end of a play, of a combination of symbols designated, in the original design of the gaming machine, or in a subsequent modification approved by the Authority, as a progressive jackpot combination, or\n> > \n> > > (b) on the happening of another event or contingency which the Authority approves, by written instrument, as being a due occasion for a progressive jackpot prize for the purposes of this definition.\n> > \n> > promotional prize has the same meaning as it has in the [Gaming Machines Act 2001](/view/html/inforce/current/act-2001-127), section 45.\n> > \n> > registered club has the same meaning as it has in the [Registered Clubs Act 1976](/view/html/inforce/current/act-1976-031).\n> > \n> > revenue from a gaming machine means the total amount of bets made on a gaming machine by a player, including bets made using a promotional prize.\n> > \n> > tax means tax imposed by this Act on profits from gaming machines.\n> > \n> > tax year means—\n> > \n> > > (a) in relation to a hotelier—the period of 12 months commencing on 1 July, and\n> > \n> > > (b) in relation to a registered club—the period of 12 months commencing on 1 September.\n> > \n> > winnings means the total amount of prizes won by and paid or awarded, or liable to be paid or awarded, to a player from playing a gaming machine, but does not include promotional prizes.\n> \n> > (2) (Repealed)\n> \n> > (3) A reference in this Act to a tax year of a specified year is a reference to the tax year that commences in that specified year. For example, a reference to the 2004 tax year is a reference to the tax year that commences on 1 July 2004 (in relation to a hotelier) or 1 September 2004 (in relation to a registered club).\n> \n> **s 3:** Am 2001 No 127, Sch 5.3 \\[1\\] \\[2\\]; 2003 No 34, Sch 2 \\[1\\] \\[2\\]; 2007 No 92, Sch 4.8 \\[1\\]–\\[5\\]; 2011 No 72, Sch 5.4; 2021 No 37, Sch 1\\[1\\] \\[2\\].","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Relationship with Taxation Administration Act 1996","content":"#### 4 Relationship with Taxation Administration Act 1996\n\n4 Relationship with [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097)\n\n> This Act is to be read together with the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), which makes provision for the administration and enforcement of this Act and other taxation laws.\n> \n> Note—\n> \n> This Act amends the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097)—see section 30 and Schedule 5.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Notes","content":"#### 5 Notes\n\n5 Notes\n\n> Notes included in this Act do not form part of this Act.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Gaming machine tax","content":"# Part 2 Gaming machine tax\n\nPart 2 Gaming machine tax","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Tax on gaming machines","content":"#### 6 Tax on gaming machines\n\n6 Tax on gaming machines\n\n> > (1) A tax is payable on profits from gaming machines kept in a hotel or on the premises of a registered club.\n> \n> > (2) The tax is payable by the hotelier or registered club concerned.\n> \n> > (3) In the event of a tax default (within the meaning of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097)) in respect of an amount of tax for which a hotelier is liable—\n> > \n> > > (a) the hotelier, and\n> > \n> > > (b) any person who, at the time the amount became due, was directly interested in the business, or the profits of the business, carried on under the hotel licence,\n> > \n> > are jointly and severally liable to pay the amount concerned, and section 45 of that Act applies accordingly.\n> \n> Note—\n> \n> Section 45 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) provides for recovery of tax where two or more persons are jointly liable to pay it.\n> \n> **s 6:** Am 2007 No 92, Sch 4.8 \\[6\\].","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Payment by instalments","content":"#### 7 Payment by instalments\n\n7 Payment by instalments\n\n> > (1) For the purposes of this Act—\n> > \n> > > (a) each tax year of a hotelier is divided into 4 periods of 3 months commencing on 1 July, 1 October, 1 January and 1 April, and\n> > \n> > > (b) each tax year of a registered club is divided into 4 periods of 3 months commencing on 1 September, 1 December, 1 March and 1 June.\n> \n> > (2) Quarterly instalments of tax are payable by a hotelier or registered club to the Chief Commissioner within 21 days after the end of each instalment period.\n> \n> > (3) A hotelier or registered club must—\n> > \n> > > (a) before the end of each such 21-day period, deposit the amount payable in a bank or financial institution, and\n> > \n> > > (b) make such arrangements with the Chief Commissioner as enable the Chief Commissioner to access or appropriate that amount (such as by way of direct debit from the account of the hotelier or registered club concerned).\n> > \n> > Maximum penalty—20 penalty units.\n> \n> > (4) In the case of hoteliers, the liability to pay such an instalment lies with the hotelier who holds the relevant hotel licence at the time the instalment is due.\n> \n> **s 7:** Am 2001 No 127, Sch 5.3 \\[3\\]; 2003 No 34, Sch 2 \\[3\\]; 2007 No 92, Sch 4.8 \\[6\\].","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Returns","content":"#### 8 Returns\n\n8 Returns\n\n> > (1) The Authority may from time to time, by notice published in the Gazette, require—\n> > \n> > > (a) all hoteliers and registered clubs that keep gaming machines, or\n> > \n> > > (b) specified hoteliers or registered clubs that keep gaming machines, or\n> > \n> > > (c) specified classes of hoteliers or registered clubs that keep gaming machines,\n> > \n> > to lodge with the CMS licensee a return, in a form approved by the Authority, in relation to the performance of those gaming machines and the tax payable under this Act in relation to those gaming machines.\n> \n> > (2) A hotelier or registered club must comply with the requirements of such a notice within the time specified by the notice.\n> \n> > (3) A hotelier or registered club must not, in purported compliance with this section, lodge with the CMS licensee a return that is false or misleading in a material particular.\n> \n> > (4) Proceedings for an offence under subsection (3) may be commenced at any time within the period of 3 years that next succeeds commission of the offence.\n> \n> > (5) The hotelier or registered club is to retain a copy of each return lodged under this section for a period of not less than 3 years after the date on which it was lodged.\n> \n> Maximum penalty—20 penalty units.\n> \n> **s 8:** Am 2007 No 92, Sch 4.8 \\[5\\].","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Calculation and assessment of tax","content":"#### 9 Calculation and assessment of tax\n\n9 Calculation and assessment of tax\n\n> > (1) As soon as practicable after receipt of a return from a hotelier or registered club in relation to a quarterly instalment period, a CMS licensee must—\n> > \n> > > (a) calculate the amount of each quarterly instalment of tax payable by the hotelier or club, and\n> > \n> > > (b) advise the Chief Commissioner (and the hotelier or registered club concerned) of the calculated amount.\n> \n> > (2) The Authority may from time to time—\n> > \n> > > (a) where it is of the opinion that the information provided in a return might be incorrect, or\n> > \n> > > (b) for such other reason as seems sufficient to the Authority,\n> > \n> > and after making such inquiries as it thinks fit and taking into account such information as may be available to it, recalculate the amount of any quarterly instalment of tax payable by a hotelier or registered club, and advise the Chief Commissioner accordingly.\n> \n> > (2A) The Chief Commissioner must notify the hotelier or registered club concerned of any recalculation advised to the Chief Commissioner under subsection (2).\n> \n> > (3) The Chief Commissioner is to assess or reassess, under Part 3 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), tax liabilities according to calculations, and any recalculations, made under this section and any rebate available under Part 4.\n> \n> **s 9:** Am 2004 No 55, Sch 1.12 \\[1\\] \\[2\\]; 2007 No 92, Sch 4.8 \\[5\\].","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Adjustments","content":"#### 10 Adjustments\n\n10 Adjustments\n\n> > (1) Following the end of a tax year and after payment by a hotelier or registered club of the instalment payable in respect of the last of the instalment periods for the tax year, the Authority must, on application by the hotelier (or any relevant previous hotelier) or by the club concerned, make a comparison of the tax payable in respect of that tax year and the total of the relevant 4 quarterly instalments made, and advise the Chief Commissioner of the result of that comparison.\n> \n> > (2) If the amount of tax assessed to be payable is less than the amount paid by the hotelier or registered club for the tax year concerned, the Chief Commissioner may—\n> > \n> > > (a) hold the difference in credit for the hotelier or club, or\n> > \n> > > (b) refund the difference in accordance with Part 4 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097).\n> > \n> > Note—\n> > \n> > Part 4 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) provides for refunds of tax overpayments.\n> \n> > (3) In a case where the tax for the tax year concerned was paid by more than one hotelier, any credit or refund of tax may be apportioned among those hoteliers in such proportions as the Chief Commissioner considers appropriate.\n> \n> **s 10:** Am 2007 No 92, Sch 4.8 \\[5\\].","sortOrder":11},{"sectionNumber":"11","sectionType":"section","heading":"Apportionment of liability for tax in certain circumstances","content":"#### 11 Apportionment of liability for tax in certain circumstances\n\n11 Apportionment of liability for tax in certain circumstances\n\n> > (1) The Chief Commissioner may, in such manner as the Chief Commissioner considers appropriate—\n> > \n> > > (a) apportion the liability for tax as between hoteliers—\n> > > \n> > > > (i) in any case where there has been a change in the ownership of a hotel licence, or\n> > > \n> > > > (ii) in such other circumstances as the Chief Commissioner considers appropriate, and\n> > \n> > > (b) apportion the liability for tax as between registered clubs—\n> > > \n> > > > (i) in the event of an amalgamation of a registered club as referred to in the [Registered Clubs Act 1976](/view/html/inforce/current/act-1976-031), or\n> > > \n> > > > (ii) in such other circumstances as the Chief Commissioner considers appropriate.\n> \n> > (2) Subsection (1) (a) does not affect the operation of section 7 (4).\n> \n> **s 11:** Am 2007 No 92, Sch 4.8 \\[6\\] \\[7\\].","sortOrder":12},{"sectionNumber":"Part 3","sectionType":"part","heading":"Rates of tax","content":"# Part 3 Rates of tax\n\nPart 3 Rates of tax\n\n**pt 3:** Subst 2003 No 34, Sch 2 \\[4\\].","sortOrder":13},{"sectionNumber":"Division 1","sectionType":"division","heading":"Hoteliers","content":"## Division 1 Hoteliers\n\nDivision 1 Hoteliers\n\n**pt 3, div 1:** Subst 2003 No 34, Sch 2 \\[4\\].","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Annual rate for hoteliers","content":"#### 12 Annual rate for hoteliers\n\n12 Annual rate for hoteliers\n\n> > (1) If the profits from all gaming machines kept in a hotel in a tax year do not exceed $25,000, tax is payable on the profits at the rate of tax rate 1 for the tax year.\n> \n> > (2) If the profits from all gaming machines kept in a hotel in a tax year exceed $25,000, but do not exceed $200,000, tax is payable—\n> > \n> > > (a) on $25,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on so much of those profits as exceeds $25,000 at the rate of tax rate 2 for the tax year.\n> \n> > (3) If the profits from all gaming machines kept in a hotel in a tax year exceed $200,000, but do not exceed $400,000, tax is payable—\n> > \n> > > (a) on $25,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $175,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on so much of those profits as exceeds $200,000 at the rate of tax rate 3 for the tax year.\n> \n> > (4) If the profits from all gaming machines kept in a hotel in a tax year exceed $400,000, but do not exceed $1,000,000, tax is payable—\n> > \n> > > (a) on $25,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $175,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on $200,000 of those profits at the rate of tax rate 3 for the tax year, and\n> > \n> > > (d) on so much of those profits as exceeds $400,000 at the rate of tax rate 4 for the tax year.\n> \n> > (5) If the profits from all gaming machines kept in a hotel in a tax year exceed $1,000,000, but do not exceed $5,000,000, tax is payable—\n> > \n> > > (a) on $25,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $175,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on $200,000 of those profits at the rate of tax rate 3 for the tax year, and\n> > \n> > > (d) on $600,000 of those profits at the rate of tax rate 4 for the tax year, and\n> > \n> > > (e) on so much of those profits as exceeds $1,000,000 at the rate of tax rate 5 for the tax year.\n> \n> > (6) If the profits from all gaming machines kept in a hotel in a tax year exceed $5,000,000, tax is payable—\n> > \n> > > (a) on $25,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $175,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on $200,000 of those profits at the rate of tax rate 3 for the tax year, and\n> > \n> > > (d) on $600,000 of those profits at the rate of tax rate 4 for the tax year, and\n> > \n> > > (e) on $4,000,000 of those profits at the rate of tax rate 5 for the tax year, and\n> > \n> > > (f) on so much of those profits as exceeds $5,000,000 at the rate of tax rate 6 for the tax year.\n> \n> Note—\n> \n> From the 2010 tax year, tax rates 1 and 2 are nil. Accordingly, no tax is payable on profits of up to $200,000.\n> \n> **s 12:** Subst 2003 No 34, Sch 2 \\[4\\]. Am 2010 No 46, Sch 3 \\[1\\].","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Instalment rate for hoteliers","content":"#### 13 Instalment rate for hoteliers\n\n13 Instalment rate for hoteliers\n\n> > (1) If the profits from all gaming machines kept in a hotel in an instalment period do not exceed $6,250, the instalment payable is the amount determined by multiplying those profits by tax rate 1 for the tax year in which the instalment period commences.\n> \n> > (2) If the profits from all gaming machines kept in a hotel in an instalment period exceed $6,250, but do not exceed $50,000, the instalment payable is the sum of the following amounts—\n> > \n> > > (a) the amount determined by multiplying $6,250 by tax rate 1 for the tax year in which the instalment period commences,\n> > \n> > > (b) the amount determined by multiplying the amount by which those profits exceed $6,250 by tax rate 2 for the tax year in which the instalment period commences.\n> \n> > (3) If the profits from all gaming machines kept in a hotel in an instalment period exceed $50,000, but do not exceed $100,000, the instalment payable is the sum of the following amounts—\n> > \n> > > (a) the amount determined by multiplying $6,250 by tax rate 1 for the tax year in which the instalment period commences,\n> > \n> > > (b) the amount determined by multiplying $43,750 by tax rate 2 for the tax year in which the instalment period commences,\n> > \n> > > (c) the amount determined by multiplying the amount by which those profits exceed $50,000 by tax rate 3 for the tax year in which the instalment period commences.\n> \n> > (4) If the profits from all gaming machines kept in a hotel in an instalment period exceed $100,000, but do not exceed $250,000, the instalment payable is the sum of the following amounts—\n> > \n> > > (a) the amount determined by multiplying $6,250 by tax rate 1 for the tax year in which the instalment period commences,\n> > \n> > > (b) the amount determined by multiplying $43,750 by tax rate 2 for the tax year in which the instalment period commences,\n> > \n> > > (c) the amount determined by multiplying $50,000 by tax rate 3 for the tax year in which the instalment period commences,\n> > \n> > > (d) the amount determined by multiplying the amount by which those profits exceed $100,000 by tax rate 4 for the tax year in which the instalment period commences.\n> \n> > (5) If the profits from all gaming machines kept in a hotel in an instalment period exceed $250,000, but do not exceed $1,250,000, the instalment payable is the sum of the following amounts—\n> > \n> > > (a) the amount determined by multiplying $6,250 by tax rate 1 for the tax year in which the instalment period commences,\n> > \n> > > (b) the amount determined by multiplying $43,750 by tax rate 2 for the tax year in which the instalment period commences,\n> > \n> > > (c) the amount determined by multiplying $50,000 by tax rate 3 for the tax year in which the instalment period commences,\n> > \n> > > (d) the amount determined by multiplying $150,000 by tax rate 4 for the tax year in which the instalment period commences,\n> > \n> > > (e) the amount determined by multiplying the amount by which those profits exceed $250,000 by tax rate 5 for the tax year in which the instalment period commences.\n> \n> > (6) If the profits from all gaming machines kept in a hotel in an instalment period exceed $1,250,000, the instalment payable is the sum of the following amounts—\n> > \n> > > (a) the amount determined by multiplying $6,250 by tax rate 1 for the tax year in which the instalment period commences,\n> > \n> > > (b) the amount determined by multiplying $43,750 by tax rate 2 for the tax year in which the instalment period commences,\n> > \n> > > (c) the amount determined by multiplying $50,000 by tax rate 3 for the tax year in which the instalment period commences,\n> > \n> > > (d) the amount determined by multiplying $150,000 by tax rate 4 for the tax year in which the instalment period commences,\n> > \n> > > (e) the amount determined by multiplying $1,000,000 by tax rate 5 for the tax year in which the instalment period commences,\n> > \n> > > (f) the amount determined by multiplying the amount by which those profits exceed $1,250,000 by tax rate 6 for the tax year in which the instalment period commences.\n> \n> Note—\n> \n> From the 2010 tax year, tax rates 1 and 2 are nil. Accordingly, an instalment is not payable on profits in an instalment period of up to $50,000.\n> \n> **s 13:** Subst 2003 No 34, Sch 2 \\[4\\]. Am 2010 No 46, Sch 3 \\[2\\].","sortOrder":16},{"sectionNumber":"13A","sectionType":"section","heading":"Tax rates for hoteliers","content":"#### 13A Tax rates for hoteliers\n\n13A Tax rates for hoteliers\n\n> In this Division—\n> \n> tax rate 1 for a tax year means the rate (expressed as a percentage) specified in column 1 of Table 1 next to the tax year concerned.\n> \n> tax rate 2 for a tax year means the rate (expressed as a percentage) specified in column 2 of Table 1 next to the tax year concerned.\n> \n> tax rate 3 for a tax year means the rate (expressed as a percentage) specified in column 3 of Table 1 next to the tax year concerned.\n> \n> tax rate 4 for a tax year means the rate (expressed as a percentage) specified in column 4 of Table 1 next to the tax year concerned.\n> \n> tax rate 5 for a tax year means the rate (expressed as a percentage) specified in column 5 of Table 1 next to the tax year concerned.\n> \n> tax rate 6 for a tax year means the rate (expressed as a percentage) specified in column 6 of Table 1 next to the tax year concerned.\n> \n> Table 1: Tax rates—hoteliers\n> \n> |  | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 |\n> | Tax year | Tax rate 1 (%) ($0–$25K) | Tax rate 2 (%) (exceeds $25K but not $200K) | Tax rate 3 (%) (exceeds $200K but not $400K) | Tax rate 4 (%) (exceeds $400K but not $1M) | Tax rate 5 (%) (exceeds $1M but not $5M) | Tax rate 6 (%) (exceeds $5M) |\n> | 2004 | 5.8 | 15.8 | 17.2 | 26.5 | 31.5 | 33.6 |\n> | 2005 | 5.7 | 15.7 | 18.5 | 27.1 | 32.1 | 36.4 |\n> | 2006 | 5.5 | 15.5 | 19.8 | 27.7 | 32.7 | 39.1 |\n> | 2007 | 5.4 | 15.4 | 21.1 | 28.2 | 33.2 | 41.8 |\n> | 2008 | 5.3 | 15.3 | 22.4 | 28.8 | 33.8 | 44.5 |\n> | 2009 | 5.1 | 15.1 | 23.7 | 29.4 | 34.4 | 47.3 |\n> | 2010 and subsequent tax years | Nil | Nil | 33.0 | 33.0 | 36.0 | 50.0 |\n> \n> Note—\n> \n> See Schedule 2A for arrangements for the 2003 tax year.\n> \n> **s 13A:** Ins 2003 No 34, Sch 2 \\[4\\]. Am 2010 No 46, Sch 3 \\[3\\].","sortOrder":17},{"sectionNumber":"Division 2","sectionType":"division","heading":"Registered clubs","content":"## Division 2 Registered clubs\n\nDivision 2 Registered clubs\n\n**pt 3, div 2:** Subst 2003 No 34, Sch 2 \\[4\\]; 2006 No 50, Sch 1 \\[1\\].","sortOrder":18},{"sectionNumber":"14","sectionType":"section","heading":"Annual rate for registered clubs","content":"#### 14 Annual rate for registered clubs\n\n14 Annual rate for registered clubs\n\n> > (1) If the profits from all gaming machines kept on the premises of a registered club in a tax year do not exceed $200,000, no tax is payable on the profits.\n> \n> > (2) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $200,000, but do not exceed $1,000,000, the following provisions apply—\n> > \n> > > (a) in the 2006 tax year—tax is payable on so much of those profits as exceeds $200,000 at the rate of tax rate 1 for the tax year,\n> > \n> > > (b) in the 2007 tax year and subsequent tax years—no tax is payable on the profits.\n> \n> > (3) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,000,000, but do not exceed $1,800,000, the following provisions apply—\n> > \n> > > (a) in the 2006 tax year—tax is payable on $800,000 of those profits at the rate of tax rate 1 for the tax year, and on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year,\n> > \n> > > (b) in the 2007 tax year and subsequent tax years, tax is payable—\n> > > \n> > > > (i) on the taxable component of the first $1,000,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > > \n> > > > (ii) on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year.\n> \n> > (4) For the purposes of subsection (3), the taxable component of the first $1,000,000 of the profits of a registered club from gaming machines kept on the premises of the club is $1 for every $1 by which profits from all gaming machines kept on the premises of the registered club in the tax year exceeds $1,000,000.\n> > \n> > Note—\n> > \n> > The taxable component of the first $1,000,000 of the profits of the registered club from gaming machines will vary from $1 (for a club that has profits of $1,000,001) to $800,000 (for a club that has profits of $1,800,000). The first $200,000 of profits is always tax free.\n> > \n> > **Example.** If the profits of a club from all gaming machines kept on the premises is $1,200,000, the taxable component of the first $1,000,000 of the profits is $200,000. Accordingly tax is payable on $200,000 of the first $1,000,000 of those profits at tax rate 1 and on the profits that exceed $1,000,000 (ie $200,000) at tax rate 2.\n> \n> > (5) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,800,000, but do not exceed $5,000,000, tax is payable—\n> > \n> > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year.\n> \n> > (6) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $5,000,000, but do not exceed $10,000,000, tax is payable—\n> > \n> > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on so much of those profits as exceeds $5,000,000 at the rate of tax rate 3 for the tax year.\n> \n> > (7) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $10,000,000, but do not exceed $20,000,000, tax is payable—\n> > \n> > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and\n> > \n> > > (d) on so much of those profits as exceeds $10,000,000 at the rate of tax rate 4 for the tax year.\n> \n> > (8) If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $20,000,000, tax is payable—\n> > \n> > > (a) on $800,000 of those profits at the rate of tax rate 1 for the tax year, and\n> > \n> > > (b) on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and\n> > \n> > > (c) on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and\n> > \n> > > (d) on $10,000,000 of those profits at the rate of tax rate 4 for the tax year, and\n> > \n> > > (e) on so much of those profits as exceeds $20,000,000 at the rate of tax rate 5 for the tax year.\n> \n> > (9) This section is subject to Part 4.\n> \n> **s 14:** Subst 2003 No 34, Sch 2 \\[4\\]; 2006 No 50, Sch 1 \\[1\\]. Am 2006 No 87, Sch 3.1.","sortOrder":19},{"sectionNumber":"15","sectionType":"section","heading":"Instalment rate for registered clubs","content":"#### 15 Instalment rate for registered clubs\n\n15 Instalment rate for registered clubs\n\n> > (1) If the profits from all gaming machines kept on the premises of a registered club in an instalment period do not exceed $50,000, no instalment is payable.\n> \n> > (2) If the profits from all gaming machines kept on the premises of a registered club in an instalment period exceed $50,000, but do not exceed $250,000, the following provisions apply—\n> > \n> > > (a) for the 2006 tax year—the instalment payable is the amount determined by multiplying the amount by which those profits exceed $50,000 by tax rate 1 for the tax year,\n> > \n> > > (b) for any subsequent tax year—no instalment is payable.\n> \n> > (3) If the profits from all gaming machines kept on the premises of a registered club in an instalment period exceed $250,000, the instalment payable is the amount calculated as follows—\n> > \n> > > (a) calculate the notional annual profits of the club by multiplying the profits from all gaming machines kept on the premises of the registered club in the instalment period by 4,\n> > \n> > > (b) calculate the amount of tax that would be payable for the tax year on the notional annual profits of the club (as if the notional annual profits of the club were the total profits in the tax year from all gaming machines kept on the premises of the registered club),\n> > \n> > > (c) calculate the instalment payable by dividing the amount calculated at paragraph (b) by 4.\n> \n> > (4) For the purpose of calculating the amount referred to in subsection (3) (b), a number specified in the Table to section 15A as tax rate 2, 3, 4 or 5 for the tax year is taken to be reduced by 1.85.\n> > \n> > Note—\n> > \n> > The purpose of the reduction under this subsection is to take account of any annual rebate that may be available under Part 4. For example, tax rate 2 becomes 18.05, instead of 19.9.\n> \n> > (5) Despite anything to the contrary in this section, the remainder of any tax that, under this Division, remains payable in respect of the whole of a tax year is payable at the time of payment of the last instalment for the year.\n> \n> > (6) Subsection (5) does not affect any provision of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) or any arrangement that may be entered into under that Act for the payment or compromise of any debt.\n> \n> **s 15:** Subst 2003 No 34, Sch 2 \\[4\\]; 2006 No 50, Sch 1 \\[1\\]. Am 2011 No 31, Sch 1 \\[1\\] \\[2\\].","sortOrder":20},{"sectionNumber":"15A","sectionType":"section","heading":"Tax rates for registered clubs","content":"#### 15A Tax rates for registered clubs\n\n15A Tax rates for registered clubs\n\n> In this Division—\n> \n> tax rate 1 for a tax year means the rate (expressed as a percentage) specified in column 1 of Table 1 next to the tax year concerned.\n> \n> tax rate 2 for a tax year means the rate (expressed as a percentage) specified in column 2 of Table 1 next to the tax year concerned.\n> \n> tax rate 3 for a tax year means the rate (expressed as a percentage) specified in column 3 of Table 1 next to the tax year concerned.\n> \n> tax rate 4 for a tax year means the rate (expressed as a percentage) specified in column 4 of Table 1 next to the tax year concerned.\n> \n> tax rate 5 for a tax year means the rate (expressed as a percentage) specified in column 5 of Table 1 next to the tax year concerned.\n> \n> Table 1: Tax rates—registered clubs\n> \n> |  | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |\n> | Tax year | Tax rate 1 (%) | Tax rate 2 (%) | Tax rate 3 (%) | Tax rate 4 (%) | Tax rate 5 (%) |\n> | 2006 | 10.0 | 21.0 | 25.5 | 27.7 | 27.7 |\n> | 2007–2010 tax years | 10.0 | 21.0 | 26.0 | 29.0 | 30.9 |\n> | 2011 and subsequent tax years | 10.0 | 19.9 | 24.4 | 26.4 | 28.4 |\n> \n> **s 15A:** Ins 2003 No 34, Sch 2 \\[4\\]. Subst 2006 No 50, Sch 1 \\[1\\]. Am 2011 No 31, Sch 1 \\[3\\] \\[4\\].","sortOrder":21},{"sectionNumber":"Part 4","sectionType":"part","heading":"Rebate of tax levied on registered clubs","content":"# Part 4 Rebate of tax levied on registered clubs\n\nPart 4 Rebate of tax levied on registered clubs","sortOrder":22},{"sectionNumber":"16","sectionType":"section","heading":"ClubGRANTS","content":"#### 16 ClubGRANTS\n\n16 ClubGRANTS\n\n> > (1) The Minister administering the [Registered Clubs Act 1976](/view/html/inforce/current/act-1976-031) may from time to time, after consultation with Clubs NSW, publish guidelines (the ClubGRANTS guidelines) that determine what constitutes the application of profits to community development and support for the purposes of this Part.\n> \n> > (2) The ClubGRANTS guidelines must provide for the matters mentioned in Schedule 1.\n> \n> > (3) Provisions of the ClubGRANTS guidelines that from time to time define the terms Category 1 projects and services and Category 2 projects and services for the purposes of Schedule 1 are to be settled in consultation with Clubs NSW and the Council of Social Service of New South Wales.\n> \n> > (3A) Provisions of the ClubGRANTS guidelines that from time to time define the terms Category 3 projects and services for the purposes of section 17A are to be settled in consultation with Clubs NSW.\n> \n> > (4) Part 6 of the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) (sections 39, 42 and 43 excepted) applies to the ClubGRANTS guidelines.\n> \n> **s 16:** Am 2001 No 127, Sch 5.3 \\[4\\]–\\[6\\]; 2011 No 31, Sch 1 \\[5\\] \\[6\\].","sortOrder":23},{"sectionNumber":"17","sectionType":"section","heading":"Tax rebate for ClubGRANTS expenditure","content":"#### 17 Tax rebate for ClubGRANTS expenditure\n\n17 Tax rebate for ClubGRANTS expenditure\n\n> > (1) If the Authority is satisfied, on such evidence as the Authority may require, that a proportion of prescribed profits has been applied by a registered club to community development and support, the amount of tax payable by the club under section 14 (3), (5), (6), (7) or (8) is by this section reduced by an amount equal to the amount so applied, except as provided by subsection (2).\n> \n> > (2) The amount by which tax payable under section 14 (3), (5), (6), (7) or (8) is reduced by this section cannot exceed an amount equal to 1.85% of the prescribed profits.\n> > \n> > Note—\n> > \n> > The combined effect of this subsection and the operation of section 17A (5) (that forwards 0.4% of the prescribed profits of each registered club to the ClubGRANTS Fund on behalf of clubs) is that the effective tax rebate rate is 2.25%.\n> \n> > (3) However, the amount of tax payable under section 14 (3), (5), (6), (7) or (8) is not to be reduced by this section if the Authority is satisfied, on the information provided by a ClubGRANTS Local Committee in accordance with the ClubGRANTS guidelines, that the registered club claiming the reduction has not complied with the ClubGRANTS guidelines.\n> \n> > (4) In this section—\n> > \n> > ClubGRANTS Local Committee means a committee established under the ClubGRANTS guidelines.\n> > \n> > prescribed profits means so much of the profits from gaming machines kept on the premises of a registered club during a tax year as exceeds $1,000,000.\n> \n> **s 17:** Am 2001 No 127, Sch 5.3 \\[7\\]; 2003 No 34, Sch 2 \\[5\\]; 2006 No 50, Sch 1 \\[2\\]; 2007 No 92, Sch 4.8 \\[5\\]; 2011 No 31, Sch 1 \\[7\\]–\\[9\\].","sortOrder":24},{"sectionNumber":"17A","sectionType":"section","heading":"ClubGRANTS Fund","content":"#### 17A ClubGRANTS Fund\n\n17A ClubGRANTS Fund\n\n> > (1) There is established in the Special Deposits Account an account to be called the ClubGRANTS Fund (the Fund).\n> \n> > (2) The Fund is to be administered by the Secretary of the Department of Customer Service.\n> \n> > (3) The following is to be paid into the Fund—\n> > \n> > > (a) money paid into the Fund under subsections (5) and (6),\n> > \n> > > (b) money advanced to the Fund by the Treasurer,\n> > \n> > > (c) the interest and any other amounts from time to time accruing from the investments of the Fund,\n> > \n> > > (d) other money required or permitted to be paid into the Fund by or under this or any other Act.\n> \n> > (4) There is payable from the Fund—\n> > \n> > > (a) expenditure approved by the Minister administering the [Registered Clubs Act 1976](/view/html/inforce/current/act-1976-031) to support and develop, by way of grant, large scale projects or services associated with sport, health or community infrastructure that are defined in the ClubGRANTS guidelines as Category 3 projects and services,\n> > \n> > > (b) administrative expenses incurred in relation to the Fund,\n> > \n> > > (c) money that is directed to be paid from the Fund by or under this or any other Act.\n> \n> > (5) There is to be paid, without further appropriation than this Act, into the Fund out of the Consolidated Fund, within 1 month after the end of each tax year for registered clubs, an amount equal to 0.4% of the prescribed profits of each registered club during the tax year.\n> \n> > (6) A registered club may pay amounts of money into the Fund.\n> \n> > (7) In this section, prescribed profits has the same meaning as in section 17.\n> \n> **s 17A:** Ins 2011 No 31, Sch 1 \\[10\\]. Am 2017 No 22, Sch 4.16 \\[1\\]; 2020 No 30, Sch 3.15.","sortOrder":25},{"sectionNumber":"Part 5","sectionType":"part","heading":"Exemption from or deferral of tax","content":"# Part 5 Exemption from or deferral of tax\n\nPart 5 Exemption from or deferral of tax","sortOrder":26},{"sectionNumber":"18","sectionType":"section","heading":"Functions of Hardship Review Board","content":"#### 18 Functions of Hardship Review Board\n\n18 Functions of Hardship Review Board\n\n> The Hardship Review Board constituted under the [State Debt Recovery Act 2018](/view/html/inforce/current/act-2018-011) may exercise its functions under that Act and the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) in relation to tax payable under this Act.\n> \n> **s 18:** Subst 2018 No 11, Sch 3.4.","sortOrder":28},{"sectionNumber":"19","sectionType":"section","heading":"Constitution of Committee","content":"#### 19 Constitution of Committee\n\n19 Constitution of Committee\n\n> > (1) There is to be a Committee for the purposes of this Division comprising the following members—\n> > \n> > > (a) the Auditor-General (or a senior officer of the Audit Office appointed by the Auditor-General),\n> > \n> > > (b) the Secretary of the Treasury (or a senior officer of the Treasury appointed by the Secretary),\n> > \n> > > (c) the Secretary of the Department of Customer Service (or a Public Service senior executive employed in the Department appointed by the Secretary),\n> > \n> > > (d) a person appointed by the Club Industry Advisory Council established by the Minister for Racing.\n> \n> > (2) If a person is not appointed for the purposes of subsection (1) (d), the Minister for Racing may appoint a person to be a member of the Committee for the purposes of that paragraph.\n> \n> > (3) A member of the Committee may appoint a person to act in the place of that member at meetings of the Committee.\n> \n> > (4) Each member of the Committee has a deliberative vote and, in the event of an equality of votes, the member referred to in subsection (1) (a) has a second or casting vote.\n> \n> > (5) The procedure for the calling of meetings of the Committee and the conduct of business at those meetings is to be determined by the Committee.\n> \n> > (6) The Committee is a continuation of the Committee constituted under Division 3 of Part 4 of the [Registered Clubs Regulation 1996](/view/html/repealed/current/sl-1996-0428) immediately before the commencement of this section.\n> \n> **s 19:** Am 2004 No 91, Sch 2.32; 2017 No 22, Sch 4.16 \\[2\\] \\[3\\]; 2020 No 30, Sch 3.15.","sortOrder":30},{"sectionNumber":"20","sectionType":"section","heading":"Exemption from tax liability in certain cases of hardship","content":"#### 20 Exemption from tax liability in certain cases of hardship\n\n20 Exemption from tax liability in certain cases of hardship\n\n> > (1) The Committee may, by order in writing, exempt a registered club from its liability to pay the whole or part of an instalment of tax if the Committee is satisfied that—\n> > \n> > > (a) a casino was in operation (under the [Casino Control Act 1992](/view/html/inforce/current/act-1992-015)) during the whole or part of the instalment period concerned, and\n> > \n> > > (b) the whole or any part of that casino was within 10 kilometres of any part of the premises of the registered club, and\n> > \n> > > (c) the club first became registered under the [Registered Clubs Act 1976](/view/html/inforce/current/act-1976-031) before 23 April 1993, and\n> > \n> > > (d) the club is suffering serious financial hardship as a result of a reduction in the profits from approved gaming machines kept by the club during that instalment period, and\n> > \n> > > (e) the reduction in profits is reasonably attributable to the availability of poker machines in the casino during that instalment period, and\n> > \n> > > (f) the exemption is necessary to alleviate or assist in the alleviation of that hardship.\n> \n> > (2) The Chief Commissioner is to be notified of, and is to give effect to, any order by the Committee under this section.\n> \n> > (3) Notice of the order is also to be given to the registered club to which the order relates.\n> \n> **s 20:** Am 2001 No 127, Sch 5.3 \\[8\\].","sortOrder":31},{"sectionNumber":"21","sectionType":"section","heading":"Application for exemption","content":"#### 21 Application for exemption\n\n21 Application for exemption\n\n> > (1) An exemption under this Division may be granted on application by the registered club concerned.\n> \n> > (2) An application (and any exemption granted on the application) can relate to one instalment of tax only. Further applications in respect of an instalment period can be made.\n> \n> > (3) An application must be in writing and be accompanied by—\n> > \n> > > (a) a copy of the income and expenditure statement and balance sheet for the registered club in respect of the 3 financial years immediately preceding the application, and\n> > \n> > > (b) such other information and documentation as the Committee may request, being information and documentation that it reasonably requires to determine the application.\n> \n> > (4) The Committee may require an application and the details and information accompanying an application to be verified by statutory declaration.","sortOrder":32},{"sectionNumber":"22","sectionType":"section","heading":"Effect of previous refusal by Hardship Review Board","content":"#### 22 Effect of previous refusal by Hardship Review Board\n\n22 Effect of previous refusal by Hardship Review Board\n\n> The Committee cannot grant an exemption under this Division in respect of the liability of a registered club to pay an instalment of tax if—\n> \n> > (a) the registered club has made an application to the Hardship Review Board for that Board to waive, defer or write off the tax concerned, and\n> \n> > (b) the Hardship Review Board has refused the application.","sortOrder":33},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"# Part 6 Miscellaneous\n\nPart 6 Miscellaneous","sortOrder":34},{"sectionNumber":"23","sectionType":"section","heading":"Registered clubs with distinct premises","content":"#### 23 Registered clubs with distinct premises\n\n23 Registered clubs with distinct premises\n\n> In respect of a registered club whose premises include two or more areas that are determined by the Authority to be separate and distinct premises, the provisions of this Act apply as though each of those premises were a separate registered club, and a reference in those provisions to a gaming machine kept on the premises of the club is to be construed accordingly.\n> \n> **s 23:** Am 2007 No 92, Sch 4.8 \\[5\\].","sortOrder":35},{"sectionNumber":"24","sectionType":"section","heading":"Proceedings for offences","content":"#### 24 Proceedings for offences\n\n24 Proceedings for offences\n\n> Proceedings for an offence under this Act or the regulations are to be dealt with summarily before the Local Court.\n> \n> **s 24:** Subst 2007 No 92, Sch 4.8 \\[8\\].","sortOrder":36},{"sectionNumber":"25","sectionType":"section","heading":"Regulations","content":"#### 25 Regulations\n\n25 Regulations\n\n> The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":37},{"sectionNumber":"26","sectionType":"section","heading":"Review of Act","content":"#### 26 Review of Act\n\n26 Review of Act\n\n> > (1) The Minister is to review this Act to determine whether the policy objectives of the Act remain valid and whether the terms of the Act remain appropriate for securing those objectives.\n> \n> > (2) The review is to be undertaken as soon as possible after the period of 5 years from the date of assent to this Act.\n> \n> > (3) A report on the outcome of the review is to be tabled in each House of Parliament within 12 months after the end of the period of 5 years.","sortOrder":38},{"sectionNumber":"27","sectionType":"section","heading":"Savings and transitional provisions","content":"#### 27 Savings and transitional provisions\n\n27 Savings and transitional provisions\n\n> Schedule 2 has effect.","sortOrder":39},{"sectionNumber":"27A","sectionType":"section","heading":"Arrangements for 2003 tax year","content":"#### 27A Arrangements for 2003 tax year\n\n27A Arrangements for 2003 tax year\n\n> Schedule 2A has effect.\n> \n> **s 27A:** Ins 2003 No 34, Sch 2 \\[6\\].","sortOrder":40},{"sectionNumber":"28","sectionType":"section","heading":null,"content":"#### 28\n\n28–30 (Repealed)","sortOrder":41},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Mandatory provisions for ClubGRANTS guidelines","content":"# Schedule 1 Mandatory provisions for ClubGRANTS guidelines\n\nSchedule 1 Mandatory provisions for ClubGRANTS guidelines\n\n(Section 16)\n\n**sch 1, hdg:** Am 2001 No 127, Sch 5.3 \\[9\\]; 2011 No 31, Sch 1 \\[11\\].\n\n**sch 1:** Am 2001 No 127, Sch 5.3 \\[10\\]–\\[13\\]; 2011 No 31, Sch 1 \\[12\\] \\[13\\].","sortOrder":43},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Savings and transitional provisions","content":"# Schedule 2 Savings and transitional provisions\n\nSchedule 2 Savings and transitional provisions\n\n(Section 27)\n\n**sch 2:** Am 2001 No 127, Sch 5.3 \\[14\\] \\[15\\]; 2003 No 34, Sch 2 \\[7\\] \\[8\\]; 2006 No 50, Sch 1 \\[3\\] \\[4\\]; 2010 No 46, Sch 3 \\[4\\]; 2011 No 31, Sch 1 \\[14\\] \\[15\\]; 2021 No 37, Sch 1\\[3\\].","sortOrder":49},{"sectionNumber":"Schedule 2A","sectionType":"schedule","heading":"Arrangements for 2003 tax year","content":"# Schedule 2A Arrangements for 2003 tax year\n\nSchedule 2A Arrangements for 2003 tax year\n\n(Section 27A)\n\n**sch 2A:** Ins 2003 No 34, Sch 2 \\[9\\].","sortOrder":67},{"sectionNumber":"Schedule 3","sectionType":"schedule","heading":null,"content":"# Schedule 3\n\nSchedules 3–5 (Repealed)\n\n**schs 3–5:** Rep 2003 No 82, Sch 3.","sortOrder":76}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"_metrics":{"source":"grok-batch-everything"},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has grown significantly beyond its original 2001 purpose of replacing earlier duty regimes on gaming machine revenue with a profits-based tax. Amendments expanded it to include sophisticated community-benefit rebates via ClubGRANTS (with a dedicated Fund and mandatory expenditure categories), casino-proximity hardship relief for pre-1993 clubs, detailed CMS return and recalculation mechanisms, promotional prize exclusions, and extensive transitional provisions for changing tax years and rates, shifting its focus from pure revenue collection to also shaping industry conduct, community funding and transitional equity."},"complexity_factors":["Highly tiered progressive tax brackets requiring cumulative calculations across multiple thresholds for both annual tax (ss 12, 14) and quarterly instalments (ss 13, 15)","Extensive definitions in s 3 that cross-reference at least six other Acts including the Gaming Machines Act 2001, Liquor Act 2007, Registered Clubs Act 1976 and Taxation Administration Act 1996","Separate and non-identical tax regimes, instalment rules, tax-free thresholds and rebate systems for hoteliers versus registered clubs","Detailed rebate and community expenditure system in Part 4 involving ministerial guidelines, ClubGRANTS Local Committees, a dedicated ClubGRANTS Fund, statutory declarations and caps (ss 16-17A, Schedule 1)","Multiple layers of adjustments, apportionment on ownership changes or amalgamations, hardship exemptions via a dedicated Committee, and year-specific transitional schedules (ss 10, 11, 19-22, Schedules 2, 2A)","Nested conditions, exceptions and recalculations involving the Authority, Chief Commissioner and CMS licensee (ss 8, 9, 10)"],"plain_english_summary":"**The Gaming Machine Tax Act 2001** requires hotels and registered clubs in New South Wales to pay tax on the profits they make from poker machines (called gaming machines). Profits are simply the total money bet by players minus the prizes paid out (but not including special promotional giveaways). \n\nThe law sets out how to calculate these profits, when to pay tax (in quarterly instalments), and different tax rates that get higher as profits increase. Hotels face tax on all profits above certain low thresholds, while registered clubs get the first $200,000 tax-free and can reduce their tax bill further by spending some profits on community projects through the ClubGRANTS scheme. \n\nA central computer system (CMS) helps track the machines and calculate tax. The Act also allows for annual adjustments, refunds if too much was paid, special rules when a hotel or club changes ownership, and relief in cases of financial hardship (especially if a casino is nearby). It works closely with other laws on gaming machines, liquor, clubs, and tax administration. \n\nThis matters because it raises government revenue from gambling while encouraging clubs to support local community services, with clear rules, penalties, and record-keeping requirements for anyone operating these machines."},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based on the information available, the Act appears to have remained focused on its original purpose: taxing gaming machine revenue in NSW. While the tax rates and thresholds have been adjusted across its many amendments, the core scope — imposing a tax on gaming machine operators — does not appear to have fundamentally changed from its original intent."},"complexity_factors":["Multiple responsible ministers across different portfolios, suggesting overlapping regulatory interests","Long legislative history (2001 to present) with over 15 distinct versions, meaning the operative rules have changed frequently and tracking which version applies to a given period requires care","Tax legislation inherently involves technical calculations, defined terms, and thresholds not fully visible in the provided document","Interaction with other gaming regulation laws (e.g., the Gaming Machines Act 2001) adds complexity for operators needing to understand the full compliance picture","The substantive operative provisions (tax rates, formulas, exemptions) are not included in the provided text, meaning the true complexity of the Act cannot be fully assessed from this excerpt alone","Tiered or progressive tax structures common in gaming machine tax laws add mathematical and definitional complexity"],"plain_english_summary":"## Gaming Machine Tax Act 2001 (NSW)\n\n### What is this law?\nThis is a **New South Wales** law that imposes a **tax on gaming machines** — commonly known as poker machines or \"pokies.\" It applies to venues licensed to operate gaming machines, such as pubs, clubs, and casinos in NSW.\n\n### Who does it affect?\n- **Venue operators** (pubs and clubs) who run poker machines — they must pay this tax on the money their machines earn\n- **Indirectly, patrons** who play the machines, since the tax is a cost of running the machines\n- **NSW taxpayers generally** — the revenue collected funds government services\n\n### What does it do?\nThe Act sets out the rules for how much tax gaming venue operators must pay to the NSW Government based on the **revenue their poker machines generate** (i.e., the money players lose). The tax is calculated on \"gaming machine profits\" and is a significant source of government revenue.\n\n### Why does it matter?\nPoker machines are a major source of revenue for licensed venues — and for the government. This tax is how NSW takes its share of gaming profits. For venue operators, it directly affects their bottom line. The law has been updated **many times since 2001** (over 15 versions), suggesting tax rates and rules have been regularly adjusted.\n\n### Key things to know\n- This is a **NSW-specific** tax law (not federal)\n- Three ministers share responsibility: the **Treasurer**, the **Minister for Gaming and Racing**, and the **Minister for Finance**\n- The law has been in continuous operation since 2001 and remains current as of late 2021\n\n> ⚠️ **Note:** The actual tax rates, thresholds, and calculation methods are not included in the document provided — only the administrative and status information is shown. Venue operators should consult the full text of the Act or seek professional advice for specific figures."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"Since enactment, the Act’s operational scope has been adjusted by amendments that changed rate schedules, added or modified rebate arrangements for registered clubs (ClubGRANTS), and altered instalment and transitional arrangements. Concrete examples in the text include the insertion of year‑specific tax rate tables for hoteliers and clubs (s 13A; s 15A), the creation of the ClubGRANTS rebate mechanism and Fund (s 16–17A and Schedule 1), and special transitional rules for specified tax years (Schedule 2 and Schedule 2A). These amendments change who benefits from rebates, the size and timing of taxable liabilities, and the administrative arrangements for calculation, collection and verification."},"complexity_factors":["Separate and detailed tax rate schedules for hoteliers and for registered clubs, including multiple bands and year‑specific tables (s 12–13A; s 14–15A).","Different instalment calculation rules and reconciliation mechanics (s 7; s 13; s 15).","Interplay with other statutes and administrative actors, notably the Taxation Administration Act 1996, the Authority, Chief Commissioner and CMS licensees (s 4; s 8; s 9).","Rebate mechanism (ClubGRANTS) with capped reductions, mandatory guideline content, verification requirements and a dedicated Fund (s 16–17; s 17A; Schedule 1).","Discretionary administrative powers (Authority recalculation, Chief Commissioner apportionment, Ministerial guideline setting) that produce factual inquiries and potential disputes (s 8–11; s 16).","Hardship and exemption pathways with specified eligibility tests and documentary requirements (s 18–21).","Multiple transitional and savings provisions and year‑specific special rules (Schedule 2 and Schedule 2A).","Penalties, record‑keeping and procedural obligations for payers and the involvement of third parties (CMS licensees) in calculation and reporting (s 7; s 8; s 9)."],"plain_english_summary":"What this law does (mechanics)\n\n- The Act imposes a tax on the profits generated by approved gaming machines kept in hotels and on the premises of registered clubs. The hotelier or the registered club is the person liable to pay that tax (s 6).\n- Tax is paid by quarterly instalments. Each tax year is divided into four three‑month instalment periods (s 7). Hoteliers and clubs must deposit the instalment amount in a bank and make arrangements allowing the Chief Commissioner to access or appropriate that amount (for example, by direct debit) (s 7(2)–(3)).\n- The Authority (the Independent Liquor and Gaming Authority) can require hoteliers and clubs to lodge returns about machine performance with the CMS licensee in a form the Authority approves (s 8). Returns must be true and kept for 3 years; there is a penalty for lodging false or misleading returns (s 8(3)–(5)).\n- After a return is lodged, a CMS licensee calculates the quarterly instalment and advises the Chief Commissioner and the hotelier or club. The Authority may recalculate instalments after inquiries; the Chief Commissioner assesses or reassesses tax liabilities based on those calculations and any applicable rebate (s 9).\n- At the end of each tax year there is a reconciliation: the Authority compares the year’s assessed tax with the quarterly instalments paid and advises the Chief Commissioner; any overpayment may be credited or refunded (s 10).\n- The Chief Commissioner may apportion liability between multiple hoteliers or clubs in cases such as change of hotel licence ownership or amalgamation of clubs (s 11).\n\nWho pays, who decides, and the operational actors\n\n- Who pays: hoteliers (hotel licence holders) and registered clubs keeping gaming machines (s 6).\n- Who calculates and enforces: CMS licensees calculate instalments from returns and notify the Chief Commissioner (s 9); the Authority can require returns and may recalculate instalments (s 8, s 9); the Chief Commissioner assesses, collects and can appropriate amounts from accounts (s 7(3), s 9). The Taxation Administration Act 1996 provides the administration and enforcement framework (s 4).\n- Policy/design actors: the Minister administering the Registered Clubs Act publishes the ClubGRANTS guidelines (s 16); the ClubGRANTS Fund is administered by the Secretary of the Department of Customer Service (s 17A); a Committee (made up of public officers and an industry appointee) decides on certain hardship exemptions for registered clubs (s 19–20).\n\nRates, bands and differences between hoteliers and clubs (how much)\n\n- Hoteliers: tax is applied progressively to the hotel’s annual profits from gaming machines under a multi‑band schedule (s 12). Instalment calculations use scaled versions of those bands for each quarter (s 13). The Act explicitly defines the tax rates for each tax year in a table (s 13A).\n- Registered clubs: the club regime has different thresholds and banding (s 14). Instalments for clubs follow separate rules (s 15) and their tax rates are set out in another table (s 15A).\n- The Act contains transitional and special arrangements for particular tax years (for example, the 2003 arrangements in Schedule 2A and rate changes noted in s 12 and s 13A).\n\nRebate and community spending (ClubGRANTS)\n\n- Registered clubs that apply a portion of their \"prescribed profits\" to community development and support may receive a rebate that reduces the tax payable (s 17). The Authority must be satisfied, on such evidence as it requires, that those amounts were applied to community development (s 17(1)).\n- The rebate is capped: tax reductions under s 17 cannot exceed 1.85% of the prescribed profits (s 17(2)). The Act explains that, together with a 0.4% payment into the ClubGRANTS Fund, the effective rebate rate is 2.25% (s 17 note and s 17A(5)).\n- The Minister issues ClubGRANTS guidelines (after consultation with Clubs NSW and the Council of Social Service of NSW as specified) that define eligible categories of projects and other administrative requirements (s 16). The guidelines must include mandatory minimums (for example, at least 0.75% of prescribed profits must be applied to Category 1 community services) and verification steps (Schedule 1 cl 1 and cl 5).\n- The ClubGRANTS Fund is established in the Special Deposits Account, administered by the Department of Customer Service, and is credited by a 0.4% payment from the Consolidated Fund equal to 0.4% of each club’s prescribed profits for the tax year (s 17A(1)–(6)).\n\nDiscretion, review and relief\n\n- The Authority and the Chief Commissioner have scope to ask for returns, recalculate instalments and assess taxes (s 8, s 9).\n- The Hardship Review Board may exercise its functions in relation to tax under this Act (s 18), and a separate Committee can grant time‑limited exemptions of instalments to registered clubs that meet a tight set of conditions (including proximity to a casino, registration date, proof of hardship and causal link to profit reduction) (s 19–20).\n\nCosts, incentives and trade‑offs (what the Act makes people do)\n\n- The tax reduces net profits from gaming machines; the immediate financial incidence falls on hoteliers and registered clubs who keep the machines (s 6). The instalment system spreads cash payments across the year (s 7), and year‑end reconciliation adjusts over/underpayments (s 10).\n- For registered clubs there is an explicit incentive to apply a portion of prescribed profits to community development if they wish to reduce tax (s 17). The benefit is capped and subject to evidence and guideline compliance (s 17(1)–(3); Schedule 1 cl 1 and cl 5). The Act requires consultation with Clubs NSW and the Council of Social Service when defining eligible project categories (s 16), which ties the rebate to prescribed types of spending and a stakeholder consultation process.\n- Compliance obligations include lodging accurate returns with the CMS licensee, keeping records for at least 3 years, depositing instalment amounts and granting the Chief Commissioner access to funds if required. False or misleading returns attract penalties (s 7(2)–(3); s 8(1)–(5)).\n- Administrative discretion exists at several points: the Authority can require returns, recalculate instalments and approve progressive jackpot definitions (s 8; s 9; s 3). The Chief Commissioner has discretion to apportion liabilities among multiple hoteliers or clubs in specified circumstances (s 11).\n\nImplementation and operational risks\n\n- The system depends on: (a) timely and accurate returns from hoteliers and clubs (s 8); (b) CMS licensees correctly calculating instalments and advising the Chief Commissioner (s 9); and (c) the Chief Commissioner having access to deposited amounts (s 7(3)). Errors, late returns, or disagreements over calculations can trigger reassessments and enforcement carried out under the Taxation Administration Act framework (s 4, s 9).\n- The rebate requires documentary evidence and Local Committee verification steps (s 17; Schedule 1 cl 5), which creates an administrative burden for clubs claiming the rebate and for the Authority reviewing those claims.\n\nWhy it matters (official purpose claims and practical tests)\n\n- Officially, parts of the Act aim to both raise revenue from gambling operations and to encourage registered clubs to apply a share of large gaming profits to community development through the ClubGRANTS rebate (s 17, s 17A, s 16). The Act operationalises those aims by: (a) setting tax rates and instalment mechanics (Part 3; s 7, s 12–15A); (b) prescribing a rebate mechanism tied to compliance with guidelines (Part 4); and (c) establishing administrative structures and relief pathways (s 8–11; s 18–21).\n- Against that stated aim, the Act places compliance costs on payers (returns, record retention, verification for rebates) and gives officials administrative discretion (Authority recalculations, Chief Commissioner apportionments, Ministerial guidelines). The rebate redirects a capped portion of taxable profits into community projects if clubs comply with the rules (s 17, s 17A, Schedule 1). The structure therefore substitutes a capped, monitored channel for some club spending in exchange for tax relief, while leaving the bulk of tax collection, assessment and enforcement with existing revenue administration bodies (s 4, s 9)."}},"importantCases":[],"_links":{"self":"/api/acts/gaming-machine-tax-act-2001","history":"/api/acts/gaming-machine-tax-act-2001/history","analysis":"/api/acts/gaming-machine-tax-act-2001/analysis","conflicts":"/api/acts/gaming-machine-tax-act-2001/conflicts","importantCases":"/api/acts/gaming-machine-tax-act-2001/important-cases","documents":"/api/acts/gaming-machine-tax-act-2001/documents"}}