Changes in club tax rates to be introduced into state parliament today will require clubs increase grants to community and sporting groups by $89.5 million over the next 4 years.
The extra community support will be funded from proposed new tax rates that will see clubs pay an estimated $2.5 billion in total tax over the period, a reduction of $299 million on what they would have paid in tax under the existing rates, which themselves were a 52% increase driven by the former NSW Government.
An analysis by KPMG of the Coalition’s gaming tax rates has calculated huge benefits for NSW over the next 4 years including:
- 1,924 new jobs annually
- A $261 million increase in Gross State Product (GSP)
- A $272 million increase in clubs’ social contribution to the community
CEO of ClubsNSW Anthony Ball said the new club tax rates will help offset some of the damage of the previous Government’s increase in club tax rates.
“We can’t undo the 9,000 jobs that have gone from the club industry or reopen the 97 clubs that have closed since the Labor party increased club tax by more than $1 billion. But these new rates will create thousands of new jobs and provide the state economy with a much needed boost.
“The new tax rates also see the amount of funding donated directly to community and sporting groups rise to record levels with clubs donating at least $264 million in support.
“This money means more funding for organisations like Father Chris Riley’s Youth Off The Streets, Meals On Wheels, surf lifesaving and junior sport.
“Clubs were formed to support local communities and the proposed new tax rates will allow them to continue doing this.
“It’s no state secret that the club industry has struggled in recent years under the weight of the billion dollar increase in club tax rates.
“The repercussions of these challenges have been particularly hard felt in regional NSW where the club is almost always the largest employer, as well as centre of local community fundraising.
“The local club is also the epicentre for other small businesses that invariably see the club as their largest and most dependable customer.
“The Government’s follow through of their long standing election commitment will be celebrated by the almost 6 million club members who will rightly feel more certain that their club and local charities now have a viable future,” Anthony Ball said.
Media Relations Manager
ClubsNSW / ClubsAustralia
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