Registered Clubs Act 1976 Regulation relating to payment of duty on poker machines (1990-640) [GG No 120 of 28.9.1990] (NSW)

1990 - No. 640

REGISTERED CLUBS ACT 1976 - REGULATION

(Relating to payment of duty on poker machines)

NEW SOUTH WALES

[Published in Gazette No. 120 of 28 September 1990]

HIS Excellency the Governor, with the advice of the Executive Council, and in pursuance of the Registered Clubs Act 1976, has been pleased to make the Regulation set forth hereunder.

J. R. CAUSLEY

Chief Secretary.

Commencement

1. This Regulation commences on 1 December 1990.

Amendment

2. The Registered Clubs Regulation 1983 is amended:

(a) by omitting clause 20M and by inserting instead the following Part:

PART 4B - DUTY ON POKER MACHINES

Division 1 - Preliminary

Definitions

20M. (1) In this Part:
"cancelled credits payment" means payment (otherwise than

directly from the machine) of an amount by way of redemption of credits accumulated by a poker machine player in the course of play;

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"duty period" means a period of 12 months commencing on

1 December;

"jackpot payment" means payment of an amount to which a

poker machine player is entitled:

for the achievement by the player, at the end of a play, of a combination of symbols that is designated, in the original design of the machine or in a subsequent modification approved by the Board, as a jackpot combination; or

on the happening of any other event or contingency

which the Board, by instrument in writing, approves as being a due occasion of a jackpot payment for the purposes of this definition;

"outgoings" means cancelled credits payments, jackpot

payments, refills and short pays;

"profits" means the excess of revenue over outgoings;

"refill" means an amount of money inserted by a club into the

hopper of a poker machine;

"revenue" from a poker machine means:

(a) money cleared from the machine; and

(b) money invested by players of the machine in order to play the machine (but not being money inserted into the machine);

"short pay" means a payment made to a poker machine
player of an amount to which the player is entitled and
which would, except for a malfunction of the machine, have
been paid to the player by the machine;

''the suspended Act'' means the Gaming and Betting (Poker Machines) Taxation Act 1956, the operation of which is suspended while this Part is in force.

(2) For the purposes of the definition of "cancelled credits payment" in subclause (1):

(a)	credits accumulated by a poker machine player in the course of play include credits accumulated as a result of the investment of money by the player before proceeding to play the machine or while playing it; and
(b)	a player's credits are completely redeemed on payment to the player of an amount equal to the amount that a

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player would have to invest in the machine concerned, when showing a nil credit balance, in order (without playing the machine) to be credited with that number of credits.

Application of amounts credited
20N. (1) The liability of a club to pay any instalment or other amount of duty under this Part is reduced to the extent of any amount standing to the credit of the club in the accounts of the Board at the date the payment is due.

(2) Money credited to a club in the accounts of the Board may be appropriated by the Board in satisfaction of the whole or part of any duty or penalty payable by the club under Division 2, but may not be otherwise appropriated by the Board for or toward the discharge of any debts of the club.

Division 2 - Ordinary duty

Rate of duty
20O. (1) If the profits from all poker machines kept by a club in a duty period do not exceed $100,000, duty is payable on those profits at the rate of 1 per cent.
(2) If the profits from all poker machines kept by a club in a duty period exceed $100,000, duty is payable:

(a) in the sum of $1,000; and

(b) on so much of the profits as exceeds $100,000 - at the rate of 22.5 per cent.

Payment by instalments

20P. (1) For the purposes of this Division, every duty period

is divided into 4 periods of 3 months each (in this Part called

"instalment periods") commencing on 1 December, 1 March, 1
June and 1 September.

(2) Quarterly instalments of duty are payable by each club in respect of each instalment period.

(3) If the profits from all poker machines kept by a club in an instalment period do not exceed $25,000, the instalment payable is an amount equal to 1 per cent of those profits.

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(4) If the profits from all poker machines kept by a club in an instalment period exceed $25,000, the instalment payable is:

(a)	the sum of $250; and
(b)	an amount equal to 22.5 per cent of the amount by which the profits exceed $25,000.

(5) An instalment is payable within 21 days after the end of the relevant instalment period.

Ad jus tments

20Q. (1) Following the end of each duty period, and after payment by a club of the instalment payable in respect of the instalment period ending on 30 November, a comparison is to be made of the duty payable in respect of that duty period and of the total of the relevant 4 quarterly instalments paid.

(2) If the total of the instalments paid exceeds the duty payable for the duty period, the excess is to be credited to the club in the accounts of the Board.

Late return or late payment of duty

20R. (1) The penalty for not submitting a return in accordance with clause 7A of Schedule 2 is an amount of $100 plus a daily penalty, until the return is submitted, of 0.15 per cent of the duty instalment payable for the quarter concerned.

(2) The penalty for not paying a duty instalment in the
amount required and within the time allowed under this
Division is an amount of $100 plus a daily penalty, until

payment is made, of 0.15 per cent of the duty in arrears on the

due date.

(3) A club which, but for this subclause, would be liable to pay a penalty under both subclauses (1) and (2) in respect of the same quarterly period is by this subclause excused from its liability to pay the lesser of those penalties (or, in a case where the penalties are in equal amounts, one of those penalties).

(4) A penalty under this clause is payable by the club concerned and, if unpaid, may be recovered on behalf of the Crown as if it were duty payable under this Division.

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(5) The Board may, in a particular case or class of cases, remit or waive the whole or part of any penalty payable under this clause.

(6) If a club does not submit a return in accordance with clause 7A of Schedule 2, the Board may, taking into account any previous known profits of the club from poker machines and such other evidence as may be available to it, make an estimate of such profits derived by the club during the period in respect of which the return was required.

(7) Until the contrary is proven, the Board’s estimate under subclause (6) is to be taken, for the purposes of any proceedings for the recovery of duty or a penalty payable under this Part, to be the profits of the club from poker machines during the period in question.

Duty refund for welfare expenditure

20S. (1) If the Board is satisfied that the amount disbursed by a registered club during a duty period for approved welfare purposes was not less than the relevant proportion of the profits from poker machines derived by the club during that period, a refund of so much of the duty paid by the club under this Division as is the lesser of:

(a)	an amount equal to one-third of the amount that the Board is satisfied was so disbursed; and
(b)	the amount of the duty payable under this Division in respect of that duty period,

is to be paid to the club by the Board if application for the payment is made to the Board not later than 21 December next following that duty period or before such later date as the Board may allow.

(2) In this clause:

(a)

a reference to an amount of money disbursed by a registered club for an approved welfare purpose does not include a reference to an amount of money

(i)	collected by the club by way of donations or the proceeds of donations; or
(ii)	comprising the proceeds of any special fund-raising activity conducted by the club; and

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(b)	a reference to an approved welfare purpose is a reference to a purpose approved by the Board for the purposes of this clause as a purpose promoting community welfare, whether the approval is given generally or in a particular case; and
(c)	a reference to the relevant proportion of the profits from poker machines is a reference to a proportion of those profits determined by the Board in respect of a duty period.

Division 3 - Transitional provisions

Annual tax in respect of machines kept on 1 July 1990

20T. (1) A club which, on or before 1 October 1990, paid not less than 5/12 of the amount of annual tax which the club was liable to pay under the suspended Act in respect of poker machines kept by the club on 1 July 1990 is exempt from liability to make any further payment of annual tax in respect of those machines.

(2) A club which, on or before 1 October 1990, paid in excess of 5/12 of the amount of annual tax payable by the club in respect of the poker machines referred to in subclause (1) is to be credited in the accounts of the Board with the amount of the excess.

Annual tax in respect of machines acquired after 1 July 1990 and corresponding duty

20U. (1) A club which:

acquired a poker machine after 1 July 1990 but before

1 September 1990; and

on or before the date that is 3 months later than the date on which it was acquired, paid not less than 5/12 of the

amount of annual tax which the club was liable to pay

under the suspended Act,

is exempt from liability to make any further payment of annual

tax in respect of the machine.

(2) There is payable by a club which acquired a poker
machine on or after 1 September 1990 duty in an amount equal
to 5/l2 of the amount of annual tax that would have been

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payable in respect of the machine if it had been acquired
between 1 July 1990 and 31 August 1990.

(3) The duty imposed by this clause is payable on or before the date that is 3 months after the date of acquisition of the machine concerned.

(4) Any amount paid by a club by way of annual tax in respect of a poker machine acquired by the club after 1 September 1990 is to be credited to the club in the accounts of the Board.

(5) A club which, before the commencement of this Part, paid in excess of 5/l2 of the annual tax payable by the club in respect of poker machines referred to in this clause is to be credited in the accounts of the Board with the amount of the excess.

Concession for machines whose use is discontinued
20V. (1) The annual tax payable in respect of a poker machine described in section 2A (1) of the suspended Act and which:

(a) was kept by a club on 1 July 1990; or

(b) was acquired by the club after 1 July 1990 and before 1 September 1990,

is reduced by 1/5 for each complete month during the period commencing on the day on which the keeping of the poker machine was discontinued by the club and ending on 30 November 1990.

(2) The duty payable under clause 20U in respect of a poker machine described in section 2A (1) of the suspended Act and which was acquired by a club after 1 September 1990 is reduced by 1/5 for each complete month during the period commencing on the day on which the keeping of the poker machine was discontinued by the club and ending on 30 November 1990.

(3) The amount of a concession to which a club becomes entitled by virtue of this clause in respect of a poker machine the use of which was discontinued after 1 July 1990 and before 1 December 1990 is to be credited to the club in the accounts of the Board.

Concession based on net takings

20W. (1) By virtue of this clause, a further concession applies to annual tax, or duty under clause 28U, payable by a club in respect of poker machines:

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(a) kept by the club on 1 July 1990; or

(b) acquired by the club after that date and before 1 December 1990,

in terms similar to those of section 5A of the suspended Act,

but:

(c)	as if the reference in that section to net takings from poker machines were a reference to such net takings during the period of 6 months commencing on 1 June 1990 only, and
(d)	as if the "relevant period" mentioned in section 5A (2) were a reference to the period of 5 months ending on 30 November 1990; and

(e) as if the Schedule to that subsection read as follows:

SCHEDULE

Column 1 Column 2

Range of net takings from Poker Rate of concessions as

Machines percentage of Full Annual

Tax

Exceeding Not

Exceeding

$ $

0 15,000 95%

15,000	16,250	(95-a)%, where a is 0.02
multiplied by the number of dollars by which those net
takings exceed $15,000.
16,250	50,000	70%
50,000	52,000	(70-b)%, where b is 0.01
multiplied by the number of dollars by which those net takings exceed $50,000
52,000	75,000	50%
75,000	77,500	(50-c)%, where c is 0.004 multiplied by the number of dollars by which those net
takings exceed $75,000.

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77,500	100,000	40%
100,000	102,500	(40-d)%, where d is 0.004 multiplied by the number of dollars by which those net takings exceed $100,000.
102,500	125,000	30%
125,000	127,500	(30-e)%, where e is 0.004
multiplied by the number of dollars by which those net takings exceed $125,000.
127,500	145,000	20%
145,000	150,000	(20-f)%, where f is 0.004 multiplied by the number of dollars by which those net takings exceed $1 45,000.

(2) The amount of a concession available to a club under this

clause is to be credited to the club in the accounts of the Board.

Duty corresponding to supplementary tax

20X (1) In respect of th e period of 6 months ending on 30 November 1990, there is payable by each club a duty at the rate of 15 per cent on the net revenue from poker machines kept by the club during that period, except as otherwise provided by this clause.

(2) If, in respect of the period of 12 months ending on 30 November 1990, the aggregate net revenue from poker machines derived by a club from the keeping of poker machines by the club during that period is $100,000 or less:

(a) duty is not payable by the club under this clause; and

(b) supplementary tax is to be taken not to have been payable by the club in respect of the period of 6 months ending on 31 May 1990, and the amount of any such tax paid by the club in respect of that period is to be credited to the club in the accounts of the Board.

(3) If, in respect of the period of 12 months ending on 30 November 1990, the aggregate net revenue from poker machines derived by a club from the keeping of poker machines by the club during that period is more than $100,000 but not more than $120,000, the duty payable by the club under this clause in respect of the period of 6 months ending on 30

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November 1990 is an amount equivalent to the difference between:

(a)	duty calculated at the rate of 90 cents for each dollar by which that aggregate net revenue exceeds $100,000; and
(b)	any supplementary tax paid by the club in respect of the period of 6 months ending on 31 May 1990.

(4) If, in respect of the period of 12 months ending on 30 November 1990, the aggregate net revenue from poker machines derived by a club from the keeping of poker machines by the club during that period is more than $120,000 and the club has been relieved of its obligation to pay the whole or any part of the supplementary tax in respect of the period of 6 months ending on 31 May 1990, the duty payable by the club under this clause in respect of the period of 6 months ending on 30 November 1990 is an amount equivalent to the difference between:

(a)	a duty, calculated at the rate prescribed by subclause (1), on the aggregate net revenue from poker machines derived by the club during the period of 12 months ending on 30 November 1990; and
(b)	any supplementary tax paid by the club in respect of the period of 6 months ending on 31 May 1990.

(5) If the supplementary tax paid by a club in respect of the period of 6 months ending on 31 May 1990 exceeds the amount of duty payable by the club under subclause (3) or (4), the club is to be credited in the accounts of the Board with the amount of the excess.

(6) The duty imposed by this clause is payable on or before 21 December 1990. (7) In this clause: "aggregate net revenue from poker machines", in relation to

a club in the period of 12 months ending on 30 November 1990, means the sum of the net revenues from poker machines of the club during the periods of 6 months ending on 31 May and 30 November 1990;

"net revenue from poker machines":

(a) in relation to a club during the period of 6 months ending on 31 May 1990, has the same meaning as in

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paragraph (a) of the definition of the same

expression in section 6 (2) of the suspended Act;

(b) in relation to a club during the period of 6 months ending on 30 November 1990, has the same meaning as in paragraph (b) of the definition of the same expression in section 6 (2) of the suspended Act, except that the "prescribed amount'' referred to in that definition has the meaning given to it by this subclause;

"prescribed amount", in relation to a club in the period of 6 months ending on 30 November 1990, means the amount of duty which the club is liable to pay under clause 20U, plus

(a)	if payment of an amount of annual tax was made during that period by the club on or before the fifth day after the due date for payment - the amount of that payment; or
(b)	if payment of an amount of such tax was made during that period by the club later than the fifth day, but on or before the fourteenth day, after the due date for payment - the amount of that payment, reduced by 10 per cent and by a further 10 per cent for each day that elapsed after that fifth day and before the date of the payment; or
(c)	if no amount of such tax was paid during that period by the club on or before the fourteenth day after the due date - nil,

reduced by any amounts that are to be credited to the club under this Division (this clause and clause 202 excepted);

"supplementary tax" means supplementary tax in accordance

with section 6 of the suspended Act.

Duty equivalent to additional supplementary tax

20Y. (1) In respect of the period of 6 months ending on 30 November 1990, there is payable by each club an additional duty, at the rates specified in subclause (2), on the amount by which the net revenue from poker machines kept by the club during that period exceeds $50,000.

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(2) The duty is payable at the following rates:

(a)	where the net revenue exceeds $50,000 but does not exceed $100,000 - at the rate of 1.5 per cent on the amount in excess of $50,000;
(b)	where the net revenue exceeds $100,000 but does not exceed $250,000 - at the rate of 1.5 per cent on $50,000 and 3 per cent on the amount in excess of $100,000:
(c)	where the net revenue exceeds $250,000 but does not exceed $375,000 - at the rate of 1.5 per cent on $50,000
3 per cent on $150,000 and 6 per cent on the amount in

excess of $250,000;

(d) where the net revenue exceeds $375,000 - at the rate of 1.5 per cent on $50,000, 3 per cent on $150,000, 6 per cent on $125,000 and 7 per cent on the amout in excess of $375,000.

(3) The duty imposed by this clause is payable on or before 21 December 1990.

(4) In this clause, "net revenue from poker machines",

in relation to a club during the period of 6 months ending on 30

November 1990, has the same meaning as in paragraph (b) of

the definition of that expression in section 6 (2) of the

suspended Act, except that:

(a)	the "prescribed amount'' referred to in that definition has the same meaning as in clause 20X, and
(b)	the maintenance and depreciation allowance mentioned in paragraph (b) (iii) of that definition is to be taken to be and amount of $100 instead of an amount of $200.

Duty refund for welfare expenditure

20Z. (1) If the Board is satisfied that the amount disbursed by a registered club during the period of 12 months ending on 30 November 1990 for approved welfare purposes was not less than the relevant proportion of the aggregate net revenue from poker machines derived by the club during that period, a refund of whichever of the following amounts is the lesser:

(a) an amount equal to one-third of the amount that the Board is satisfied was so disbursed;

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(b) the aggregate of the amounts of duty payable under this Division, and the taxes payable in accordance with the suspended Act, in respect of that period,

is to be paid to the club by the Board if application for the payment is made to the Board not later than 21 December 1990 or before such later date as the Board may allow.

(2) In this clause:

a reference to an amount of money disbursed by a registered club for an approved welfare purpose does not include a reference to an amount of money

(i)         collected by the club by way of donations or the proceeds of donations; or

(ii)        comprising the proceeds of any special fund-raising activity conducted by the club; and

a reference to an approved welfare purpose is a reference to a purpose approved by the Board for the purposes of this clause as a purpose promoting community welfare, whether the approval is given generally or in a particular case; and
a reference to the aggregate net revenue from poker machines is a reference to the aggregate net revenue from poker machines within the meaning of clause 20X, and

a reference to the relevant proportion of the aggregate

net revenue from poker machines is a reference to a proportion of that aggregate net revenue determined by the Board in respect of a duty period.

Division 4 - Effect of amalgamation of clubs

Definition

20ZA. In this Division, "aggregate net revenue from poker machines":

(a)	in relation to the period of 12 months ending on 30 November 1989, has the same meaning as in section 6 of the suspended Act;
(b)	in relation to the period of 12 months ending on 30 November 1990, has the same meaning as in clause 20X.

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Effect of amalgamation before 1 Dec. 1991 on duty

20ZB. (1) In this clause, "amalgamated club" means a club formed from the amalgamation, on or after 29 June 1990 and before 1 December 1991, of 2 or more clubs (in this clause called the "unamalgamated clubs").

(2) The profits of an amalgamated club, being profits derived from poker machines kept by the amalgamated club in a duty period or instalment period, are to be notionally divided into portions, in proportion to the relative aggregate net revenues from poker machines derived by the unamalgamated clubs in the duty period that immediately preceded the duty period during which the amalgamation took place.

(3) For the purpose only of applying subclause (2), the periods of 12 months commencing on 1 December 1988 and on 1 December 1989 are to be taken to be duty periods.

(4) The provisions of this Part, in so far as they relate to the profits of an amalgamated club derived during a duty period or instalment period in which the amalgamation takes place, or during any subsequent duty period or instalment period, are to be applied as follows:

amounts resulting from an apportionment, in accordance with subclause (2), of the profits of the amalgamated club from poker machines in the period concerned are to be allocated to the unamalgamated clubs with respect to which they were respectively calculated;

liability for duty, or an instalment of duty, in respect of the period concerned is to be assessed as though the unamalgamated clubs still existed and as though their profits during the relevant period had included the portions allocated under paragraph (a);

liabilities assessed under paragraph (b) are liabilities of

the amalgamated club.

This clause has effect in repsect of the profits of an amalgamated club derived before the end of the duty period in which falls the fifth anniversary of the date of amalgamation, but has no effect in relation to profits subsequently derived.

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Effect of amalgamation on or after 1 Dec. 1991 on duty

20ZC. (1) In this clause, "amalgamated club" means a club formed from the amalgamation, on or after 1 December 1991, of 2 or more clubs (in this clause called the "unamalgamated clubs").

(2) The profits of an amalgamated club, being profits derived from poker machines kept by the amalgamated club in a duty period or instalment period, are to be notionally divided into portions, in proportion to the relative profits from poker machines derived by the unamalgamated clubs in the duty period that immediately preceded the duty period during which the amalgamation took place.

(3) The provisions of this Part, in so far as they relate to the profits of an amalgamated club derived during a duty period or instalment period in which the amalgamation takes place, or during any subsequent duty period or instalment period, are to be applied as follows:

(a)	amounts resulting from an apportionment, in accordance with subclause (2), of the profits of the amalgamated club from poker machines in the period concerned are to be allocated to the unamalgamated clubs with respect to which they were respectively calculated;
(b)	liability for duty, or an instalment of duty, in respect of the period concerned is to be assessed as though the unamalgamated clubs still existed and as though their profits during the relevant period had included the portions allocated under paragraph (a);
(c)	liabilities assessed under paragraph (b) are liabilities of the amalgamated club.

(4) This clause has effect in respect of the profits of an amalgamated club derived before the end of the duty period in which falls the fifth anniversary of the date of amalgamation, but has no effect in relation to profits subsequently derived.

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Effect of amalgamation before 1 Dec. 1990 on taxes payable under the suspended Act

20ZD. (1) In this clause, "amalgamated club" means a club formed from the amalgamation, on or after 29 June 1990 and before 1 December 1990, of 2 or more clubs (in this clause called the "unamalgamated clubs'').

(2) For the purposes of this clause, calculations are to be made of the following in respect of each amalgamated club:

the ratio of the respective aggregate net revenues from poker machines derived by the unamalgamated clubs during the period of 12 months ending on 30 November 1989;

the amount of net revenue from poker machines (within the meaning of clause 20X) in respect of the period of 6 months ending on 30 November 1990 that is attributable to the keeping of poker machines by the club during the period commencing on the date of amalgamation and ending on 30 November 1990;
the amount of net revenue from poker machines (within the meaning of clause 20Y) in respect of the period of 6 months ending on 30 November 1990 that is attributable to the keeping of poker machines by the club during the period commencing on the date of amalgamation and ending on 30 November 1990;

the total amount of duties under clauses 20X and 20Y that each unamalgamated club would have been liable to pay if the amalgamation had not taken place.

For the purpose of calculating the duties referred to in

subclause (2) (d) (and of calculating any quantity relevant to the
calculation of those duties):

(a)	the amounts referred to in subclause (2) (b) and (c) are to be apportioned, in the ratio referred to in subclause (2) (a), to the respective unamalgamated clubs; and
(b)	the net revenue of each unamalgamated club in respect of the period of 6 months ending on 30 November 1990 is to be taken to consist of the sum of:
(i) the amount of net revenue obtained by the club from the keeping of poker machines during the

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period commencing on 1 June 1990 and ending immediately before the date of amalgamation; and

(ii)        the amount apportioned to the club under paragraph (a).

(4) On written request by an amalgamated club, the Board is to make a comparison between:

(a) the total amount of duties paid by the amalgamated club under clauses 20X and 20Y, and

(b) the amount referred to in subclause (2) (d).
(5) If, in respect of any amalgamated club, the total amount

referred to in subclause (4) (a) is greater than the total amount referred to in subclause (4) (b), the club is to be credited in the accounts of the Board with the amount of the difference.

by omitting from clause 2 (2) of Schedule 2 the words ''unless the prior approval of the Board has been obtained for the operation of a scheme (known as a bonus scheme) for the payment of such prizes and the claiming of the prizes for taxation purposes";
by omitting from clause 2 (3) of Schedule 2 the words ''under a bonus scheme" and by inserting instead the words "other than prizes normally advertised on each machine";

by inserting after clause 7 of Schedule 2 the following clause:

Quarterly returns in relation to poker machine performance
and duty

7A. A return required under section 86 (2) of the Act in relation to quarterly poker machine performance and duty payable under this Part is to be submitted by a registered club to the Board at the time when each quarterly instalment is payable in accordance with Division 2 of Part 4B.

EXPLANATORY NOTE

The object of this Regulation is to provide for a scheme of duty on the profits made by registered clubs from poker machines. The scheme replaces the existing scheme of taxes contained in the Gaming and Betting (Poker Machines) Taxation Act 1956, the provisions of which are suspended on the commencement of this Regulation.

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The Regulation inserts a new Part 4B into the Registered Clubs Regulation 1983, the provisions of which may be summarised as follows:

Division 1 defines the terms used in the new Part and specifies the way in which any money standing to the credit of a registered club in the accounts of the Liquor Administration Board is to be applied. (A credit may arise from an overpayment by a club or as a result of concessions granted or end-of-period adjustments made.)

Division 2 sets out the new scheme of duty. Duty is payable at the rate of 1 per cent on profits of $100,000 (or less) derived in the 12-month periods commencing on 1 December each year, and at the rate of 22.5 per cent on so much of those profits as exceeds $100,000.

The duty is payable in quarterly instalments and adjustments are made annually. At the time when each quarterly instalment of duty is payable, each club must

submit to the Board a return relating to poker machine performance and payment of duty. Penalties are incurred by clubs which do not submit returns when due and by clubs which do not pay the required amount of duty on time. Should a club not submit a return, the Board may estimate that club’s profits for the period concerned.

The concession for welfare expenditure available under the previous tax scheme is preserved under clause 20S of the new duty scheme.

Division 3 contains transitional provisions to give effect, so far as is possible, to the policy that the replacement of the tax scheme by the duty scheme is to be revenue- neutral.

Division 4 deals with clubs which have amalgamated since 28 June 1990 (or amalgamate after the commencement of this Regulation). It provides that, for a period of approximately 5 years after the amalgamation, the amalgamated club is to be treated, for the purposes of the calculation of its liabilities to the Board, as if the amalgamation had not taken place.

The Regulation also restricts the value of poker machine prizes which a registered club may claim for taxation purposes to such of those prizes as are normally advertised on each machine or as are approved by the Liquor Administration Board as jackpot prizes.