Clubs minutes, March 2011

5. Co-Operative Bulk Handling Federal Court case

Paul Lyon raised the concept analysed in the Co-Operative Bulk Handling court ruling of 'not being carried on for the profitable gain of members' and the consequence that members of the co-op may benefit as much as general members of the community, but not more than. He asked the ATO, under this majority judgment how far this can be taken with regard to members claiming benefits? (For example, is a discount a 'profit' to members? Can members receive benefits to the exclusion of others?).

• Victor Hamit said that he understood that benefits received communally were acceptable.
• Mark Campbell noted that members of clubs generally benefit communally as members (eg, by using the club's facilities) and not by a guaranteed individual share of a 'profit'. Josh Landis said that minor price differences for food/drink are unlikely to be material enough to be profit.
• Mark Campbell said that the ATO will not lodge an appeal for the Co-Operative Bulk Handling case, and the ATO will be releasing a Decision Impact Statement sometime this year.
• The members were broadly satisfied with the ATO's view of how the judgment is likely to apply to clubs.

Action item	5
Description	ATO released a Decision Impact Statement for the Co-Operative Bulk Handling Ltd case on 20 May 2011.
Responsibility	Mark Campbell (NPC Technical Advisor)
Due date	End 2011

Sections within Agenda items

• 1. Welcome and approval of previous minutes
• 2. Recoupment of tax losses
• 3. Mutuality and taxable income guide
• 4. Clubs fundraising
• 5. Co-Operative Bulk Handling Federal Court case
• 6. GST issues relating to the clubs sector
• 7. Income tax exemption and sporting clubs guide
• 8. PAYG withholding update
• 9. Charter refresh
• 10. Compliance update
• 11. Around the traps