This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force at 2 am on 3 October 2016, replace the current system limiting the costs that corporate societies may reimburse to the operators of commercial class 4 gambling venues. The system is replaced with a commission-based scheme.
The new scheme is as follows:
a corporate society must not, in respect of a week, pay to a venue operator payments that in total exceed 1.28% of the week’s turnover from a particular venue; and
in addition to the weekly limit, a corporate society must not make payments to a venue operator that in total exceed 16% of the turnover (exclusive of prizes and goods and services tax) from a particular venue in the financial year; and
if the turnover (exclusive of prizes and goods and services tax) from a particular venue is for less than a financial year, the calculation of payments must be made in respect of that shorter period.
The weekly limit is calculated on turnover from the commercial class 4 venue. Turnover for the purposes of the weekly limit calculation includes prizes and goods and services tax.
The limit for a financial year (or part of a financial year) is calculated on turnover from the commercial class 4 venue exclusive of prizes and goods and services tax. Turnover exclusive of prizes is equivalent to gaming machine profits in section 104 of the Act.
Even though the limits on payments must be calculated in accordance with these regulations on a weekly and yearly basis, other matters relating to making any payments, including their timing and frequency, are to be agreed between the parties.
These regulations do not affect the requirement that a venue manager must bank all gaming machine profits in accordance with the Act and regulations. In other words, venue operators must not deduct a commission percentage before they bank gaming machine profits.
The limits in these regulations are an approximation of current costs and they are subject to change from time to time.
The Limits and Exclusions on Class 4 Venue Costs Notice 17 July 2008 (Gazette,2008, p 3027) will be revoked by the Secretary for Internal Affairs by notice in the Gazette at the same time as these regulations come into force.
Regulatory impact statement
The Department of Internal Affairs produced a regulatory impact statement on 22 April 2016 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this regulatory impact statement can be found at—
Date of notification in Gazette: 25 August 2016.
These regulations are administered by the Department of Internal Affairs.