The club industry has maintained that legislation is not required to ensure that clubs meet their obligation to contribute to charity, welfare and volunteer organisations, and other worthwhile causes.

Mr Speaker, the Government recognises and applauds the contribution of those clubs which have made significant community contributions in the past.

However, despite the industry's assurances, many clubs have fallen short of acceptable levels of community contributions and the Government believes that legislation is necessary to redress this state of affairs.

The new requirements will ensure that all clubs pull their weight in achieving the aim of this legislation, namely that the club industry provides guaranteed minimum contributions towards specified community activities.

This new bill also simplifies the previously proposed two categories of acceptable expenditure for the minimum contribution by rolling that requirement into one category.

Under the legislation I am introducing today, contributions must have the effect of developing or supporting the social fabric of the Territory or another community. Contributions may also include assistance to sport or other recreational activities conducted in the Territory or with participants predominantly based within the Territory.

Mr Speaker, to ensure compliance with the new legislation, the amendments also provide that the AC Gambling and Racing Commission must approve the community contributions for the purposes of the Gaming Machine Act.

Licensed clubs will still be required to report to the Commission at the end of each financial year on revenue received and contributions made. The Commission will report to the Treasurer who is required to table that report.

Mr Speaker, clubs that do not comply voluntarily with the minimum requirements will be taxed at 100% of their shortfall. This tax will be paid to the Community Services Grants Program Fund for allocation to community projects.

As I have mentioned, this bill also provides for several very important issues regarding the regulatory and accountability aspects of club operations.

The first of these will provide that all clubs with a gaming machine licence that have a gross annual revenue of more than $500,000 must be a registered company under the Commonwealth Corporations Law.

The amendments provide that clubs be given six months from the date of enactment to comply with the new requirement. Provision is made for the Gambling and Racing Commission to allow up to two years for a club to comply.