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Legislative Assembly for the ACT: 2000 Week 7 Hansard (29 June) . . Page.. 2192 ..

MR HUMPHRIES (continuing):

Mr Speaker, these amendments address the Legislative Assembly's concern about whether current legislation provides for an appropriate level of accountability for clubs.

Many of the larger clubs are currently registered as a company under the Corporations Law and therefore already face the more stringent rules on the business operation and the conduct of directors and other influential persons.

This government is of the view that, as a matter of principle, all significant club organisations should be under the control of the Australian Securities and Investments Commission (ASIC). The ASIC is better resourced to undertake the scrutiny of these organisations to protect the general community.

I expect that some opposition may be received from existing clubs due to the greater scrutiny and the costs involved to become a company. However, these fees are not considered excessive and, while there may also be some legal costs involved, I consider the benefits to the community far out weigh these costs.

This bill also contains amendments that will ensure that all clubs have provision in their Constitution or Articles of Association to allow all voting members to have an opportunity to vote in the election of at least 51 per cent of club directors.

This addresses an anomaly which currently allows for an associated organisation of a licensed club to have the power to appoint a majority of the directors-it places control of the licensed club in the hands of its voting members and not with an associated organisation.

Finally, Mr Speaker, this Bill proposes to remove what is considered to be a severe and unreasonable penalty if a club fails to pay its monthly gaming machine tax or the annual community contribution shortfall tax by the due dates.

At the moment, if the tax is not paid by the due date, the licence immediately ceases to be in force, ie. the licence is suspended. This is a non-negotiable legislative provision which can have a very serious financial impact on a club's operations even if they are only half a day late with their tax payment.

Mr Speaker, there is also an extremely onerous administrative procedure involved for both the club and the Commission if a club's gaming machine licence is suspended or cancelled even for a short period of time.

To overcome this situation, this bill proposes to replace the licence cessation provision with a late payment penalty charge at the rate specified in the Taxation Administration Act. However, the Commission may still suspend or cancel the licence for late payment or non payment of tax if it considers that course of action appropriate.

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