The Pokie Tax and the Jets

[Jeffles]

There is a lot of info from both sides about how the tax will affect various football clubs.

As a rough guide;

1) The first $200K in pokie revenue clubs make will incur no tax (no change from current laws).

2) Revenue from $200,001-$1m in clubs generate from pokies will incur less tax (down from the current 10.91% to an evental low of 10% by Sept 1 2010)

3) Pokie income generated by clubs above $1m currently incurs 17.16% tax across the board. From tomorrow these clubs will be split into 3 classes.

a) $1,000,001-$5m will pay 18.3% this year to a high of 25% by Sept 1 2010.

b) $5,000,001-$10m will pay 19.7% this year to a high of 35% by Se[t 1 2010

c) Clubs earning above $10m will pay 20.4% going up to a high of 40% by Sept 1 2010.

Source: NSW Treasury Website

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According to these figures the JETS SPORTS CLUB will pay less tax. They fall under category (2)

PETERSHAM RSL (including @Newtown) will pay more tax, as will PARKES LEAGUES CLUB.

SOUTHS JUNIORS - backers of the Junior Jets, will also pay more tax.

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So there is a bit of bad in it for the Jets but also some good with respect to the Jets Sports Club.

 

[Jeffles]

It is misleading when the government says that only one-third of clubs pay more. That may be true. But that one-third represents a greater proportion of members and community contributions than one-third.

From the club's perspective, it hardly looks good that a $1.4bn tax grab will deny clubs from making $212m in contributions. Ie. most of what is being taxed would never have gone to the community.