The following summary of the judgment in North Suburban Club Inc v. FC of T is provided to help you self-assess if your club is a society, association or club established for the encouragement of a game or sport. For a copy of the published case judgment see North Suburban Club Inc v. FC of T.
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The objects in the club's constitution included:
- to provide for members associated together for social, sporting, charitable, and educational purposes, and
- in particular, to establish and maintain accommodation and facilities for the playing of lawful games, and for musical, dramatic, and other social entertainments for members and their guest.
The club was originally founded as a cycling club. In the year of review its sporting activities were squash, snooker, billiards, table tennis and social golf.
Expenditure directly related to sport was minor expenditure on billiards, squash, badges and trophies. Sporting activities were supported by various fund raising measures with bingo being popular.
Trading results for that year revealed income mostly from poker machines and bar trading profit with expenditure geared mostly to these activities.
No particular qualifications were required for membership or election to the committee of the club.
The annual report included the words 'whilst the Club's core business is poker machines, some of you will be aware that our functions and bistro business continues to grow.'
The club was not exempt.
Whilst the club was established in 1895 as a cycling club, it is necessary to consider the purpose of the club in the relevant years of income.
The constitution and activities showed that the club had a primary purpose of providing gambling and social activities.
The sporting activities formed a relatively minor part of the total activities of the club.