Clubs minutes, March 2011

6. GST issues relating to the clubs sector

Marloney Ng presented the GST report and raised the issue on how the ATO would treat free drinks/meals supplied by clubs when vouchers are surrendered. The GST should be accounted for on the one receipt for both meals when a 2-for-1 deal is involved. We recognise value in the 2-for-1 deal, rather than accept that the free meal is for nil consideration. The problem however is that some club system software requires two separate entries for GST purposes.

Provided clarification on GST implications for monetary prize/non-monetary prizes:

monetary based prizes would be deducted from gambling revenue for monetary based prizes as to where the GST input would be applied
non-monetary prizes such as vouchers for free meals/drinks - the ATO is still considering if vouchers equate to money, but currently we think not (this may change in the future as the ATO is currently reviewing this position)
vouchers or loyalty points valid for external companies are also complicated and refunds of GST are restricted in such cases.

A member of the forum mentioned it was unfair that GST refunds are currently on hold due to the release of Miscellaneous Taxation Ruling MT 2010/1: Restriction on GST refunds, on the 15 December 2010. A request has been made that the Commissioner's discretion be applied o the clubs industry when it comes to GST refunds.
Marloney Ng said the ATO is working with the sector to clarify the correct tax treatments.
Sam Naidu asked if there could be a ruling and was told that would require a formal request. Marloney Ng will speak to Sam Naidu out of session.

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Last Modified: Monday, 5 September 2011