EXPLANATORY STATEMENT ORDINANCE NO 7, OF 1996
Issued by the Authority of the Minister for Sport, Territories and Local Government
Christmas Island Act 1958
Lotteries Commission Act 1990 (WA) (Cl) (Amendment) Ordinance 1996 The Ordinance will make two minor amendments to amendments made to the
Lotteries Commission Act 1990 (WA)(CI), which were made by the Lotteries Commission Act 1990 (WA)(Cl) (Amendment) Ordinance1995, namely:
• to ensure that a reference in section 24A to the percentage of the stake money, which the promoter must pay as a levy to the Commonwealth, is calculated on the amount of stake money less the agent's commission; and
• to correct an error in sub paragraph 24A(l)(b)(ii) to ensure the levy is 50% of the defined "relevant amount", not 50% of the stake money.
The following sets out the details of the Ordinance:
Section 1 provides that the name of the Ordinance is the Lotteries Commission Act 1990 (WA) (CI) (Amendment) Ordinance 1996.
Section 2 provides that the Lotteries Commission Act 1990 (WA)(Cl) is amended as set out in the Ordinance.
Section 3 amends section 24A.
Subsection 3.1 omits and replaces paragraphs 24A(l)(a) and (b) which provide that the levy the promoter must pay to the Commonwealth in the case of a soccer football pool is the defined "relevant amount"; inserts a formula for the calculation of the levy determined by the Minister in any other case (ie lotteries or lotto); and if the Minister does not make a determination provides that the levy is 50% of the "relevant amount".
Subsection 3.2 omits and replaces subsection 24A(2) to define "relevant amount" to mean the amount of levy paid under the law of the participating State or if the law of the participating State reduces the amount because the levy is paid to the Commonwealth, the amount that would be payable but for that law.
Overview
The Lotteries Commission Act 1990 (WA) (CI) (Amendment) Ordinance 1996 was issued under the authority of the Minister for Sport, Territories and Local Government to address specific issues in the operation of lotteries on Christmas Island. This legislation makes minor amendments to previous amendments to the Lotteries Commission Act 1990 (Western Australia) in order to rectify inconsistencies in the calculation of the promoter's levy payable to the Commonwealth. The primary objective of the Ordinance is to ensure that the levy percentage is accurately calculated based on the appropriate figures and to correct an error that was previously affecting the levy's computation.
The Ordinance amends section 24A of the Lotteries Commission Act 1990 (Western Australia) by adjusting the formula for calculating the promoter's levy, ensuring it is based on the correct financial parameters. It also corrects a misinterpretation in the calculation of the levy, specifying that it should be 50% of the "relevant amount" rather than 50% of the stake money. These adjustments are designed to maintain the integrity of the legislative framework governing lotteries on Christmas Island, ensuring that levies are applied correctly and transparently.
Scope and Application
The Christmas Island Act 1958, as amended by the Lotteries Commission Act 1990 (WA) (CI) (Amendment) Ordinance 1996, applies to entities and individuals conducting lottery activities on Christmas Island. Specifically, it targets promoters of lotteries and lotto games, ensuring they adhere to the legislative framework governing the calculation and payment of levies to the Commonwealth. The geographic scope of this Act is limited to Christmas Island, and it amends existing provisions to ensure accurate and fair calculation of the levy payable. The Act corrects a previous misinterpretation by specifying that the levy must be calculated on the amount of stake money less the agent's commission and on the "relevant amount," which is defined as the amount of levy paid under the law of the participating State or the amount that would be payable if not reduced because the levy is paid to the Commonwealth. This legislation ensures that all stakeholders involved in lottery activities on Christmas Island comply with the prescribed financial obligations, maintaining transparency and equity in the levy calculation process.
Key Provisions
The main operative sections of the Lotteries Commission Act 1990 (WA) (CI) (Amendment) Ordinance 1996 involve amendments to section 24A of the Lotteries Commission Act 1990 (WA)(CI). Section 3.1 specifically amends the paragraphs 24A(l)(a) and (b) to clarify the calculation of the levy that promoters must pay to the Commonwealth for soccer football pools and other lotteries or lotto. It provides a formula for calculating the levy if determined by the Minister or, in the absence of such determination, sets the levy at 50% of the "relevant amount".
The obligations imposed by this Act require promoters to ensure that the levy paid to the Commonwealth is calculated correctly. For soccer football pools, the levy must be based on the "relevant amount" as defined. For other cases, if the Minister has not determined a specific formula, the levy defaults to 50% of the "relevant amount". Additionally, the promoter must account for the agent's commission when calculating the amount of stake money subject to the levy, ensuring that the levy is applied to the correct net amount.
The Ordinance also imposes specific requirements on the definition and calculation of the "relevant amount". Subsection 3.2 redefines the "relevant amount" to mean the amount of levy paid under the law of the participating State or, if the State law reduces the amount because the levy is paid to the Commonwealth, the amount that would be payable if not for that reduction. This ensures clarity and consistency in the application of the levy across different jurisdictions.
In terms of consequences for breach, the Ordinance does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. However, failure to accurately calculate and remit the levy as required by the amended section could potentially lead to legal scrutiny, fines, or other penalties as prescribed by the Lotteries Commission Act 1990 (WA)(CI) or related legislation. The exact penalties would be determined based on the broader legal framework governing lottery regulations and compliance.