Gaming Machine Tax Act 2001

This Act is the Gaming Machine Tax Act 2001.

This Act commences on a day or days to be appointed by proclamation.

In this Act—

authorised CMS has the same meaning as in the Gaming Machines Act 2001.

Authority means the Independent Liquor and Gaming Authority constituted under the Gaming and Liquor Administration Act 2007.

Chief Commissioner means the Chief Commissioner of State Revenue.

CMS licensee means the holder of a CMS licence within the meaning of the Gaming Machines Act 2001.

gaming machine means an approved gaming machine within the meaning of the Gaming Machines Act 2001.

hotel, hotel licence and hotelier have the same meanings as in the Liquor Act 2007.

instalment period means a period prescribed by section 7.

outgoings, in relation to a gaming machine, means—

winnings, or

progressive jackpot prizes, or

for a gaming machine that is a part of an authorised linked gaming system operating under the Gaming Machines Act 2001, Part 10—the amount that is deducted from the gaming machine to build a prize for the authorised linked gaming system.

profits, in relation to a gaming machine, means the excess of revenue from the machine over outgoings in relation to the machine.

progressive jackpot prize means the amount to which a gaming machine player or other person is entitled to be paid—

for the achievement by the player, at the end of a play, of a combination of symbols designated, in the original design of the gaming machine, or in a subsequent modification approved by the Authority, as a progressive jackpot combination, or

on the happening of another event or contingency which the Authority approves, by written instrument, as being a due occasion for a progressive jackpot prize for the purposes of this definition.

promotional prize has the same meaning as it has in the Gaming Machines Act 2001, section 45.

registered club has the same meaning as it has in the Registered Clubs Act 1976.

revenue from a gaming machine means the total amount of bets made on a gaming machine by a player, including bets made using a promotional prize.

tax means tax imposed by this Act on profits from gaming machines.

tax year means—

in relation to a hotelier—the period of 12 months commencing on 1 July, and

in relation to a registered club—the period of 12 months commencing on 1 September.

winnings means the total amount of prizes won by and paid or awarded, or liable to be paid or awarded, to a player from playing a gaming machine, but does not include promotional prizes.

(Repealed)

A reference in this Act to a tax year of a specified year is a reference to the tax year that commences in that specified year. For example, a reference to the 2004 tax year is a reference to the tax year that commences on 1 July 2004 (in relation to a hotelier) or 1 September 2004 (in relation to a registered club).

This Act is to be read together with the Taxation Administration Act 1996, which makes provision for the administration and enforcement of this Act and other taxation laws.

Note.

This Act amends the Taxation Administration Act 1996—see section 30 and Schedule 5.

Notes included in this Act do not form part of this Act.

A tax is payable on profits from gaming machines kept in a hotel or on the premises of a registered club.

The tax is payable by the hotelier or registered club concerned.

In the event of a tax default (within the meaning of the Taxation Administration Act 1996) in respect of an amount of tax for which a hotelier is liable—

the hotelier, and

any person who, at the time the amount became due, was directly interested in the business, or the profits of the business, carried on under the hotel licence,

are jointly and severally liable to pay the amount concerned, and section 45 of that Act applies accordingly.

Note.

Section 45 of the Taxation Administration Act 1996 provides for recovery of tax where two or more persons are jointly liable to pay it.

For the purposes of this Act—

each tax year of a hotelier is divided into 4 periods of 3 months commencing on 1 July, 1 October, 1 January and 1 April, and

each tax year of a registered club is divided into 4 periods of 3 months commencing on 1 September, 1 December, 1 March and 1 June.

Quarterly instalments of tax are payable by a hotelier or registered club to the Chief Commissioner within 21 days after the end of each instalment period.

A hotelier or registered club must—

before the end of each such 21-day period, deposit the amount payable in a bank or financial institution, and

make such arrangements with the Chief Commissioner as enable the Chief Commissioner to access or appropriate that amount (such as by way of direct debit from the account of the hotelier or registered club concerned).

Maximum penalty—20 penalty units.

In the case of hoteliers, the liability to pay such an instalment lies with the hotelier who holds the relevant hotel licence at the time the instalment is due.

The Authority may from time to time, by notice published in the Gazette, require—

all hoteliers and registered clubs that keep gaming machines, or

specified hoteliers or registered clubs that keep gaming machines, or

specified classes of hoteliers or registered clubs that keep gaming machines,

to lodge with the CMS licensee a return, in a form approved by the Authority, in relation to the performance of those gaming machines and the tax payable under this Act in relation to those gaming machines.

A hotelier or registered club must comply with the requirements of such a notice within the time specified by the notice.

A hotelier or registered club must not, in purported compliance with this section, lodge with the CMS licensee a return that is false or misleading in a material particular.

Proceedings for an offence under subsection (3) may be commenced at any time within the period of 3 years that next succeeds commission of the offence.

The hotelier or registered club is to retain a copy of each return lodged under this section for a period of not less than 3 years after the date on which it was lodged.

Maximum penalty—20 penalty units.

As soon as practicable after receipt of a return from a hotelier or registered club in relation to a quarterly instalment period, a CMS licensee must—

calculate the amount of each quarterly instalment of tax payable by the hotelier or club, and

advise the Chief Commissioner (and the hotelier or registered club concerned) of the calculated amount.

The Authority may from time to time—

where it is of the opinion that the information provided in a return might be incorrect, or

for such other reason as seems sufficient to the Authority,

and after making such inquiries as it thinks fit and taking into account such information as may be available to it, recalculate the amount of any quarterly instalment of tax payable by a hotelier or registered club, and advise the Chief Commissioner accordingly.

The Chief Commissioner must notify the hotelier or registered club concerned of any recalculation advised to the Chief Commissioner under subsection (2).

The Chief Commissioner is to assess or reassess, under Part 3 of the Taxation Administration Act 1996, tax liabilities according to calculations, and any recalculations, made under this section and any rebate available under Part 4.

Following the end of a tax year and after payment by a hotelier or registered club of the instalment payable in respect of the last of the instalment periods for the tax year, the Authority must, on application by the hotelier (or any relevant previous hotelier) or by the club concerned, make a comparison of the tax payable in respect of that tax year and the total of the relevant 4 quarterly instalments made, and advise the Chief Commissioner of the result of that comparison.

If the amount of tax assessed to be payable is less than the amount paid by the hotelier or registered club for the tax year concerned, the Chief Commissioner may—

hold the difference in credit for the hotelier or club, or

refund the difference in accordance with Part 4 of the Taxation Administration Act 1996.

Note.

Part 4 of the Taxation Administration Act 1996 provides for refunds of tax overpayments.

In a case where the tax for the tax year concerned was paid by more than one hotelier, any credit or refund of tax may be apportioned among those hoteliers in such proportions as the Chief Commissioner considers appropriate.

The Chief Commissioner may, in such manner as the Chief Commissioner considers appropriate—

apportion the liability for tax as between hoteliers—

in any case where there has been a change in the ownership of a hotel licence, or

in such other circumstances as the Chief Commissioner considers appropriate, and

apportion the liability for tax as between registered clubs—

in the event of an amalgamation of a registered club as referred to in the Registered Clubs Act 1976, or

in such other circumstances as the Chief Commissioner considers appropriate.

Subsection (1) (a) does not affect the operation of section 7 (4).

If the profits from all gaming machines kept in a hotel in a tax year do not exceed $25,000, tax is payable on the profits at the rate of tax rate 1 for the tax year.

If the profits from all gaming machines kept in a hotel in a tax year exceed $25,000, but do not exceed $200,000, tax is payable—

on $25,000 of those profits at the rate of tax rate 1 for the tax year, and

on so much of those profits as exceeds $25,000 at the rate of tax rate 2 for the tax year.

If the profits from all gaming machines kept in a hotel in a tax year exceed $200,000, but do not exceed $400,000, tax is payable—

on $25,000 of those profits at the rate of tax rate 1 for the tax year, and

on $175,000 of those profits at the rate of tax rate 2 for the tax year, and

on so much of those profits as exceeds $200,000 at the rate of tax rate 3 for the tax year.

If the profits from all gaming machines kept in a hotel in a tax year exceed $400,000, but do not exceed $1,000,000, tax is payable—

on $25,000 of those profits at the rate of tax rate 1 for the tax year, and

on $175,000 of those profits at the rate of tax rate 2 for the tax year, and

on $200,000 of those profits at the rate of tax rate 3 for the tax year, and

on so much of those profits as exceeds $400,000 at the rate of tax rate 4 for the tax year.

If the profits from all gaming machines kept in a hotel in a tax year exceed $1,000,000, but do not exceed $5,000,000, tax is payable—

on $25,000 of those profits at the rate of tax rate 1 for the tax year, and

on $175,000 of those profits at the rate of tax rate 2 for the tax year, and

on $200,000 of those profits at the rate of tax rate 3 for the tax year, and

on $600,000 of those profits at the rate of tax rate 4 for the tax year, and

on so much of those profits as exceeds $1,000,000 at the rate of tax rate 5 for the tax year.

If the profits from all gaming machines kept in a hotel in a tax year exceed $5,000,000, tax is payable—

on $25,000 of those profits at the rate of tax rate 1 for the tax year, and

on $175,000 of those profits at the rate of tax rate 2 for the tax year, and

on $200,000 of those profits at the rate of tax rate 3 for the tax year, and

on $600,000 of those profits at the rate of tax rate 4 for the tax year, and

on $4,000,000 of those profits at the rate of tax rate 5 for the tax year, and

on so much of those profits as exceeds $5,000,000 at the rate of tax rate 6 for the tax year.

Note.

From the 2010 tax year, tax rates 1 and 2 are nil. Accordingly, no tax is payable on profits of up to $200,000.