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| Changes to the CDSE Scheme |
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19 December 2011 On 3 August 2011, the Minister for Tourism, Major Events, Hospitality and Racing, The Hon George Souris, MP, introduced into Parliament the Gaming Machine Tax Amendment Bill 2011. The Bill will significantly alter the Community Development and Support Expenditure (CDSE) Scheme, including changing the scheme's name to the ClubGRANTS scheme. The Bill is projected to reduce revenue to the NSW Government by $285 million over four years. $200 million of this is a tax reduction for Clubs. Under the current CDSE Scheme clubs provide funding equivalent to 1.5% of gaming machine profits over $1 million per year to community development projects and services. Clubs are allowed to claim contributions under two categories:
Under the proposed Bill, Clubs will pay 2.25% of profits from gaming machines over $1 million per year to the ClubGRANTS scheme. Of this, 0.4% will go to a state-wide funding pool for large scale projects associated with sport, health and community infrastructure to be administered by the Director-General of Department of Trade and Investment, Regional Infrastructure and Services. Clubs will also be allowed to claim contributions up to 1.1% of their profits against Category 2 expenditure. A new provision will allow clubs to claim contributions to their core activities and professional sport (but not player or coach payments). If clubs claim the full amount under Category 2, there will be no increase in funding for Category 1 projects and services. The introduction of this Bill represents a pre-election commitment from the Coalition parties. At the time this commitment was announced, NCOSS sought further information from the Coalition but received no response. NCOSS has not been consulted on these changes. NCOSS will be monitoring the implementation of the new Act and seeking ways to improve the accountability and transparency of the new ClubGRANTS scheme. Information
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