Clubs minutes, March 2011

3. Mutuality and taxable income guide

Sam Naidu spoke of the difficulty for clubs separately documenting the poker machines payouts to members and non-members.

Some of the larger clubs use a ticket in/ticket out systems, but this can end up being a problem for the larger clubs.
With regard to poker machines, there is no way to determine whether winnings collected have been by a member or non-member, due to ticket-in/ticket-out system.
Suggestion by Sam Naidu to allow each club to choose whether to use 'Waratah' or one week surveys to work out percentages. The ATO responded that a week would be unlikely to be a sufficiently representative period.
Mark Campbell noted that although in the Mutuality and taxable income guide the ATO allows a club to apply for set percentage to be used to determine member/non-member winnings, the other apportionment methods explained in the guide to provide more flexibility.
Whether a club with multiple sites could use a different apportionment method (Waratahs or Credits Payout Method) for its sites was discussed. Mark Campbell read from page 34 of the Mutuality and taxable income guide - 'Other methods' section: -'You may, for the purposes of calculating taxable income, adopt another method of apportionment where there is a reasonable basis to do so and provided that it reasonably and accurately reflects your organisation's revenue and expenses for the year in question.' He added that it was therefore open to a club operating multiple sites to use a different method of apportionment for each site where the club's records supported the basis of apportionment chosen.
Mark Campbell said that it is expected that the Mutuality and taxable income guide will be updated within the next 12 months.
Victor Hamit said that a statistical approach may be an appropriate alternative method for some clubs.
Most clubs thought it would be reasonable to have a separate survey for each site.

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Last Modified: Monday, 5 September 2011