Page 6165 - Week 19 - Tuesday, 17 December 1991

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The concern had been put that we can therefore have three categories of club: A club with a liquor licence and no gaming machine licence, which the commissioner advises me will not be able to apply under this Bill, but I am not so sure; a club that is an eligible club, with both a liquor licence and a gaming machine licence, paying the licensed club rate of taxation, which would be the majority of clubs, one would hope; and finally, a club with a liquor licence and a gaming machine licence with the higher hotel rate of taxation - all depending, of course, on the commissioner's discretion. But when you read the Bill the commissioner does not seem to have much discretion at all. People either meet these requirements or they do not.

The discussions that I have had with the commissioner, and indeed with the Government, indicate that there is, under the legislation, a further three months for clubs to comply with this requirement, having applied on 31 March. If they still do not reach the requirements, they then have a further three months to comply with the new legislation. The Government has assured me - although I think it is rather premature because by 31 March 1992 I do not believe the Government will be in a position to assure anybody about anything - that the intention of the Bill is not to try to catch people out but to - - -

Mr Berry: You are a punter. How much are you putting on?

MR DUBY: I do not know. It all depends on what rate I will be taxed at on my winnings. The intent of the Bill is primarily to prevent the unwarranted expansion of gaming machines throughout the Territory, particularly in licensed premises such as taverns. I accept that that is what the commissioner is aiming to do and I accept that he will use some discretion when it comes to interpretation under this Act; but, all in all, I am not all that satisfied with the amount of consultation that has occurred between members and the Government about this legislation. I know that the Licensed Clubs Association has done its best to distribute this amongst clubs; but I know that many clubs, for various reasons, are not aware of this piece of legislation and have not commented.

One point that needs to be made when discussing these tax rates is this: I think it is rather ironic that later today we will be discussing a Bill relating to the casino which will apply a tax rate of 20 per cent to a foreign-owned company, but our local casinos - our local casinos being our clubs - will wind up paying tax at an effective rate of 22.5 per cent, which I think is outrageous.

MR KAINE (Leader of the Opposition) (11.55): Like Mr Duby, I have some concerns about this legislation but have not had time to pursue it with the community. I note that the licensed clubs have generally agreed with this. We are told that this is what the licensed clubs want. But I wonder whether those small clubs to which Mr Duby referred really want this, because this is likely to put an additional tax burden on them.


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