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A Bill for an Act for the administration of poker machine harm reduction tax and the establishment of the Poker Machine Harm Reduction Transition Fund, and for related purposes
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Registered 15 Feb 2008
Introduced Senate 14 Feb 2008

2008

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

Poker Machine Harm Reduction Tax (Administration) Bill 2008

 

No.      , 2008

 

(Senator Fielding)

 

 

 

A Bill for an Act for the administration of poker machine harm reduction tax and the establishment of the Poker Machine Harm Reduction Transition Fund, and for related purposes

  

  

  


Contents

Part 1—Preliminary                                                                                                               1

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 1

3............ Application to Crown........................................................................ 2

4............ Extension to Territories...................................................................... 2

5............ Objects of Act.................................................................................... 2

6............ Definitions.......................................................................................... 2

Part 2—Administration                                                                                                        4

7............ General administration of Act............................................................ 4

8............ Annual report..................................................................................... 4

Part 3—Liability for and collection of poker machine harm reduction tax 5

9............ Liability for poker machine harm reduction tax.................................. 5

10.......... Licensed operators to give poker machine gross revenue returns....... 6

11.......... When poker machine harm reduction tax payable.............................. 6

Part 4—Poker Machine Harm Reduction Transition Fund                            7

12.......... Establishment of the Poker Machine Harm Reduction Transition Fund 7

13.......... Establishment of Poker Machine Harm Reduction Transition Fund Special Account            7

14.......... Credits to the Fund............................................................................. 7

15.......... Purpose of the Fund........................................................................... 7

16.......... Grant payments.................................................................................. 8

17.......... Poker Machine Harm Reduction Transition Fund Supervisory Board 8

18.......... Appointment of Board members........................................................ 8

19.......... Remuneration and allowances of Board members.............................. 9

20.......... Report................................................................................................. 9

Part 5—Miscellaneous                                                                                                       10

21.......... Regulations....................................................................................... 10

 


A Bill for an Act for the administration of poker machine harm reduction tax and the establishment of the Poker Machine Harm Reduction Transition Fund, and for related purposes

The Parliament of Australia enacts:

Part 1Preliminary

  

1  Short title

                   This Act may be cited as the Poker Machine Harm Reduction Tax (Administration) Act 2008.

2  Commencement

                   This Act commences on the day on which it receives the Royal Assent.

3  Application to Crown

                   This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory.

4  Extension to Territories

                   This Act extends to Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.

5  Objects of Act

                   The objects of this Act are to:

                     (a)  provide for the administration of the poker machine harm reduction tax imposed under the Poker Machine Harm Reduction Tax Act 2008 and payable by a licensed operator on gross revenue it derives from licensed poker machines; and

                     (b)  establish the Poker Machine Harm Reduction Transition Fund, to provide funding to help local community and sporting groups and for research and community education for the prevention of compulsive gambling, and counselling, treatment and rehabilitation of compulsive gamblers.

6  Definitions

                   In this Act:

Board means the Poker Machine Harm Reduction Transition Fund Supervisory Board established under section 17.

Commissioner means the Commissioner of Taxation.

Fund means the Poker Machine Harm Reduction Transition Fund established under section 12.

gaming machine has the same meaning as poker machine.

gross revenue means all revenue derived by a licensed operator from the operation of licensed poker machines during a financial year, including:

                     (a)  the amount of winnings for playing the machines paid or payable in accordance with the machines’ indicated prize scales (excluding linked jackpots); and

                     (b)  any amount set aside under a linked‑jackpot arrangement for the payment of linked jackpots.

licence means a poker machine licence or a gaming machine licence issued under the relevant laws of the States and Territories.

licensed operator means the holder of a poker machine licence or a gaming machine licence issued under the relevant laws of the States and Territories.

poker machine means a machine:

                     (a)  designed for playing a game of chance, or of mixed chance and skill; and

                     (b)  designed to be played completely or partly by:

                              (i)  the insertion of 1 or more coins, notes or tokens; or

                             (ii)  by the application of a monetary credit registered on the machine or elsewhere; and

                     (c)  that offers, or that appears to offer, people a chance to win monetary or other valuable consideration by playing the machine.

poker machine gross revenue return means a return of the kind referred to in section 10 that complies with all the requirements prescribed by the regulations and section 338‑75 in Schedule 1 to the Taxation Administration Act 1953.

poker machine harm reduction tax means the tax payable in accordance with this Act and imposed by the Poker Machine Harm Reduction Tax Act 2008.

tax period means each period of 3 months ending on 31 March, 30 June, 30 September or 31 December in any year.


 

Part 2Administration

7  General administration of Act

                   The Commissioner has the general administration of this Act.

8  Annual report

                   After the end of each financial year, the Commissioner must give the Treasurer a report on the operation of this Act during the year for presentation to the Parliament.


 

Part 3Liability for and collection of poker machine harm reduction tax

9  Liability for poker machine harm reduction tax

             (1)  A licensed operator of one or more licensed poker machines is liable to pay poker machine harm reduction tax.

Financial years to which tax applies

             (2)  Poker machine harm reduction tax is payable by a licensed operator on the gross revenue it derives from licensed poker machines for the financial year beginning on 1 July 2009 or a later financial year.

No tax is payable by certain licensed entities

             (3)  Poker machine harm reduction tax is not payable by a licensed operator for a financial year if the licensed operator who would be liable to pay the tax is a casino operator or a horse racecourse operator licensed to operate poker machines by the laws of the State or Territory in which the casino or racecourse, as the case may be, is located.

Charitable and religious institutions not exempt

             (4)  Religious institutions and charitable institutions that are exempt entities under Subdivision 50‑A of the Income Tax Assessment Act 1997 and that are licensed operators of licensed poker machines are not exempt from the poker machine harm reduction tax, and any other religious institutions or charitable institutions that are not exempt entities under Subdivision 50‑A of the Income Tax Assessment Act 1997 also are not exempt from the poker machine harm reduction tax.

10  Licensed operators to give poker machine gross revenue returns

             (1)  A licensed operator of one or more licensed poker machines must give to the Commissioner for each tax period a poker machine gross revenue return detailing the total gross revenue it derived from its licensed poker machines during that tax period and its calculation of the poker machine harm reduction tax payable.

             (2)  A licensed operator must give its poker machine gross revenue return for the tax period to the Commissioner on or before the 10th day after the end of the relevant tax period.

             (3)  A licensed operator must give its poker machine gross revenue returns to the Commissioner by lodging them electronically.

Note:          Section 388‑75 in Schedule 1 to the Taxation Administration Act 1953 deals with signing returns.

             (4)  A poker machine gross revenue return must be in the form prescribed by the regulations and in an electronic format approved by the Commissioner.

11  When poker machine harm reduction tax payable

                   Poker machine harm reduction tax for a tax period as calculated on a poker machine gross revenue return is payable to the Commissioner on the 10th day after the end of the relevant tax period.

Note:          Poker machine harm reduction tax is imposed by the Poker Machine Harm Reduction Tax Act 2008, which also sets the rate of the tax, which is as follows:

 

financial year 1 July 2009 to 30 June 2010

1%

financial year 1 July 2010 to 30 June 2011

2%

financial year 1 July 2011 to 30 June 2012

4%

financial year 1 July 2012 to 30 June 2013

6%

financial year 1 July 2013 to 30 June 2014

8%

financial year 1 July 2014 to 30 June 2015

10%

financial year 1 July 2015 to 30 June 2016 and each later financial year, the tax rate increases by 5% to a maximum rate of 30%.


 

Part 4Poker Machine Harm Reduction Transition Fund

12  Establishment of the Poker Machine Harm Reduction Transition Fund

                   The Poker Machine Harm Reduction Transition Fund is established by this section.

13  Establishment of Poker Machine Harm Reduction Transition Fund Special Account

             (1)  The Poker Machine Harm Reduction Transition Fund Special Account is established by this section.

             (2)  The Fund is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

14  Credits to the Fund

             (1)  There must be credited to the Fund amounts equal to the amounts of poker machine harm reduction tax received by the Commonwealth.

             (2)  If interest is received by the Commonwealth from the investment of an amount standing to the credit of the Fund, an amount equal to the interest must be credited to the Fund.

15  Purpose of the Fund

                   The purpose of the Fund is to make grants to persons and organisations to:

                     (a)  provide funding to local community and sporting groups to continue community activities, in cases where such groups no longer receive funding from licensed operators of poker machines; and

                     (b)  support evidence‑based compulsive gambling treatment, rehabilitation, research and prevention programs; and

                     (c)  promote community education encouraging responsible gambling practices and highlighting the risks of compulsive gambling.

16  Grant payments

             (1)  Grants from the Fund are to be determined and made by the Poker Machine Harm Reduction Transition Fund Supervisory Board established under section 17.

             (2)  Subject to this Act, further determination of grant payments, the operation of the Fund and the operation of the Board may be prescribed by the regulations.

17  Poker Machine Harm Reduction Transition Fund Supervisory Board

             (1)  The Poker Machine Harm Reduction Transition Fund Supervisory Board is established by this section

             (2)  The Board consists of the following members:

                     (a)  a Chair; and

                     (b)  6 other members.

Note:          Section 18B of Acts Interpretation Act 1901 deals with the title of the Chair.

             (3)  The Chair has a casting vote in all deliberations of the Board.

18  Appointment of Board members

             (1)  Board members are to be appointed by the Governor‑General by written instrument of appointment.

             (2)  A Board member holds office for the period specified in the instrument of appointment. The period must not exceed 3 years.

             (3)  A person is not eligible for appointment as a Board member unless the person has:

                     (a)  substantial experience or expertise; and

                     (b)  professional credibility and standing;

                   in respect of local community and sporting groups or in the provision of compulsive gambling treatment and support services and programs.

Note:          For re‑appointment, see subsection 33(4A) of the Acts Interpretation Act 1901.

19  Remuneration and allowances of Board members

                   A Board member is to be paid such remuneration and allowances as are prescribed by the regulations.

20  Report

                   As soon as a practicable after each 30 June, the Chair must provide a report to the Minister for Families, Housing, Community Services and Indigenous Affairs of grants determined and made by the Board in accordance with section 16.


 

Part 5Miscellaneous

21  Regulations

                   The Governor‑General may make regulations prescribing matters:

(a)    required or permitted by this Act to be prescribed; or

(b)    necessary or convenient to be prescribed for carrying out or giving effect to this Act.