• ### Other methods

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 it reasonably and accurately reflects your organisation's revenue or expenses for the year in question.

The method you choose is likely to depend on the type of revenue or expenses your organisation has.

Other methods include:

• the poker machine jackpot and credit payouts method
• the fixed percentage method.

#### Poker machine jackpot and credit payouts method

This method is used in limited circumstances only. It may not be suitable for organisations that do not have many poker machines, or if the poker machines are not used frequently.

This method should only be used to apportion revenue and expenses that relate to poker machines. This is because it does not take into account the members and non-members who attend the organisation and do not play the poker machines.

This method uses poker machine payouts to members and non-members to arrive at a non-member percentage.

Example: Calculation using poker machine jackpot and credit payouts method

The Ecru Club owns and operates poker machines on its premises.

An examination of its records for the year shows 24 jackpot payouts to members totalling \$12,000 and 36 jackpot payouts to visitors totalling \$12,000. It also shows 96 credit payouts to members totalling \$24,000 and 144 credit payouts to visitors totalling \$72,000.

During the year it recorded gaming machine revenue of \$624,000 and gaming machine expenses of \$264,000.

The payout percentage is as follows:

= number of jackpot and credit payouts to visitors
total number of jackpot and credit payouts

= 180
300

= 60%

The club would only apply the percentage to its gaming machine revenue and expenses to arrive at the assessable income and deductible expenses components. These amounts would then be added to any other assessable income or deductible expenses.

End of example

#### Fixed percentage method

This method is where an organisation has negotiated a percentage with us. For example, an organisation applies for a private ruling and we advise them of the percentage to use.

A difficulty with this method is that it does not reflect changes that occur from year to year – for example an organisation's refurbishment or new legislation requirements.

A private ruling only applies to the particular circumstances that it describes. If there is a material difference between the circumstances described and what actually occurs, the private ruling is ineffective.

Due to the variations between organisations' circumstances, it is not feasible for us to prescribe one fixed percentage for use by all organisations.