NSW urged to end ‘shameless rort’ giving clubs a tax break for spending pokies revenue

A review of the ClubGrants scheme is pending after years of criticism, but some welfare groups, anti-gambling campaigners and the Greens want it abolished now. Photograph: halbergman/Getty Images

The New South Wales government has been urged to immediately end a “shameless rort” that allows clubs to legally funnel poker machine revenue within their own operations while claiming the expenditure as a “community benefit” that reduces their tax bill.

Clubs with more than $1m in profit from gambling are eligible for a tax break provided a proportion of that money is spent on “community development and support”. Some of those funds are distributed by the controversial ClubGrants scheme.