Gaming Machine Tax Act 2001 No 72
Current version for 1 March 2012 to date (accessed 29 November 2014 at 13:22)

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.
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