Division 2 Registered clubs

14   Annual rate for registered clubs

(1)  If the profits from all gaming machines kept on the premises of a registered club in a tax year do not exceed $200,000, no tax is payable on the profits.

(2)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $200,000, but do not exceed $1,000,000, the following provisions apply:

(a)  in the 2006 tax year—tax is payable on so much of those profits as exceeds $200,000 at the rate of tax rate 1 for the tax year,

(b)  in the 2007 tax year and subsequent tax years—no tax is payable on the profits.

(3)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,000,000, but do not exceed $1,800,000, the following provisions apply:

(a)  in the 2006 tax year—tax is payable on $800,000 of those profits at the rate of tax rate 1 for the tax year, and on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year,

(b)  in the 2007 tax year and subsequent tax years, tax is payable:

(i)  on the taxable component of the first $1,000,000 of those profits at the rate of tax rate 1 for the tax year, and

(ii)  on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year.

(4)  For the purposes of subsection (3), the taxable component of the first $1,000,000 of the profits of a registered club from gaming machines kept on the premises of the club is $1 for every $1 by which profits from all gaming machines kept on the premises of the registered club in the tax year exceeds $1,000,000.

Note. The taxable component of the first $1,000,000 of the profits of the registered club from gaming machines will vary from $1 (for a club that has profits of $1,000,001) to $800,000 (for a club that has profits of $1,800,000). The first $200,000 of profits is always tax free.

Example. If the profits of a club from all gaming machines kept on the premises is $1,200,000, the taxable component of the first $1,000,000 of the profits is $200,000. Accordingly tax is payable on $200,000 of the first $1,000,000 of those profits at tax rate 1 and on the profits that exceed $1,000,000 (ie $200,000) at tax rate 2.

(5)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $1,800,000, but do not exceed $5,000,000, tax is payable:

(a)  on $800,000 of those profits at the rate of tax rate 1 for the tax year, and

(b)  on so much of those profits as exceeds $1,000,000 at the rate of tax rate 2 for the tax year.

(6)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $5,000,000, but do not exceed $10,000,000, tax is payable:

(a)  on $800,000 of those profits at the rate of tax rate 1 for the tax year, and

(b)  on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and

(c)  on so much of those profits as exceeds $5,000,000 at the rate of tax rate 3 for the tax year.

(7)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $10,000,000, but do not exceed $20,000,000, tax is payable:

(a)  on $800,000 of those profits at the rate of tax rate 1 for the tax year, and

(b)  on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and

(c)  on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and

(d)  on so much of those profits as exceeds $10,000,000 at the rate of tax rate 4 for the tax year.

(8)  If the profits from all gaming machines kept on the premises of a registered club in a tax year exceed $20,000,000, tax is payable:

(a)  on $800,000 of those profits at the rate of tax rate 1 for the tax year, and

(b)  on $4,000,000 of those profits at the rate of tax rate 2 for the tax year, and

(c)  on $5,000,000 of those profits at the rate of tax rate 3 for the tax year, and

(d)  on $10,000,000 of those profits at the rate of tax rate 4 for the tax year, and

(e)  on so much of those profits as exceeds $20,000,000 at the rate of tax rate 5 for the tax year.

(9)  This section is subject to Part 4.

15   Instalment rate for registered clubs

(1)  If the profits from all gaming machines kept on the premises of a registered club in an instalment period do not exceed $50,000, no instalment is payable.

(2)  If the profits from all gaming machines kept on the premises of a registered club in an instalment period exceed $50,000, but do not exceed $250,000, the following provisions apply:

(a)  for the 2006 tax year—the instalment payable is the amount determined by multiplying the amount by which those profits exceed $50,000 by tax rate 1 for the tax year,

(b)  for any subsequent tax year—no instalment is payable.

(3)  If the profits from all gaming machines kept on the premises of a registered club in an instalment period exceed $250,000, the instalment payable is the amount calculated as follows:

(a)  calculate the notional annual profits of the club by multiplying the profits from all gaming machines kept on the premises of the registered club in the instalment period by 4,

(b)  calculate the amount of tax that would be payable for the tax year on the notional annual profits of the club (as if the notional annual profits of the club were the total profits in the tax year from all gaming machines kept on the premises of the registered club),

(c)  calculate the instalment payable by dividing the amount calculated at paragraph (b) by 4.

(4)  For the purpose of calculating the amount referred to in subsection (3) (b), a number specified in the Table to section 15A as tax rate 2, 3, 4 or 5 for the tax year is taken to be reduced by 1.5.

Note. The purpose of the reduction under this subsection is to take account of any annual rebate that may be available under Part 4. For example, tax rate 2 becomes 19.5, instead of 21.

(5)  Despite anything to the contrary in this section, the remainder of any tax that, under this Division, remains payable in respect of the whole of a tax year is payable at the time of payment of the last instalment for the year.

(6)  Subsection (5) does not affect any provision of the Taxation Administration Act 1996 or any arrangement that may be entered into under that Act for the payment or compromise of any debt.

15A   Tax rates for registered clubs

In this Division:

tax rate 1 for a tax year means the rate (expressed as a percentage) specified in column 1 of Table 1 next to the tax year concerned.

tax rate 2 for a tax year means the rate (expressed as a percentage) specified in column 2 of Table 1 next to the tax year concerned.

tax rate 3 for a tax year means the rate (expressed as a percentage) specified in column 3 of Table 1 next to the tax year concerned.

tax rate 4 for a tax year means the rate (expressed as a percentage) specified in column 4 of Table 1 next to the tax year concerned.

tax rate 5 for a tax year means the rate (expressed as a percentage) specified in column 5 of Table 1 next to the tax year concerned.

Table 1: Tax rates—registered clubs

	Column 1	Column 2	Column 3	Column 4	Column 5
Tax year	Tax rate 1 (%)	Tax rate 2 (%)	Tax rate 3 (%)	Tax rate 4 (%)	Tax rate 5 (%)
2006	10.0	21.0	25.5	27.7	27.7
2007 and subsequent tax years	10.0	21.0	26.0	29.0	30.9