The term 'encouragement' is not defined in the tax law and takes its ordinary meaning. It covers both directly carrying on activities and supporting them less directly.
Encouragement can occur directly by:
- forming, preparing and entering teams and competitors in competitions in the game or sport
- coordinating activities
- organising and conducting tournaments including providing match officials
- preparing and maintaining the rules of a game or sport
- improving the abilities of participants
- improving the standard of trainers, coaches and other sports officials
- providing or operating the venue for a game or sport
- providing jerseys, uniforms, scarves and flag
- encouraging increased and wider participation and improved performance
- encouraging club members to be spectators at and to support the game or sport, or
- organising raffles to fund club members' participation in a specific event in the game or sport in which the club's teams or competitors are involved.
Encouragement can occur indirectly:
- through marketing
- by initiating or facilitating research and development, or
- by providing accounting, legal and management services that directly facilitate the sporting activities.
Other examples of encouragement are:
- a club set up to run all aspects of the controlling club's sporting activities for juniors
- a supporters club associated with a football club that operates solely to take spectators to away games
- an association whose purpose is to carry out research into ways that new technologies can help in the preparation of playing surfaces
- an association whose purpose is to produce a radio program which airs on a community station during the season that provides extensive insight into the major competitions of the game and includes educational content particularly aimed at junior players, and
- an association established to promote a sport by running public events to publicise and fundraise for representative players or state or national sporting events.