Small and medium clubs have been spared cumulative losses of $3.3 million over half a decade thanks to a poker machine tax rebate designed to encourage diversification away from gambling revenue.
The tax rebate will continue, with a review finding the scheme has been successful in encouraging smaller poker machine operators to make larger community contributions and divest from gambling revenue.
The ACT government is satisfied the tax rebate has been successful in supporting small and medium clubs, and club groups, to remain sustainable and financially viable.
The number of venues claiming the rebate has fallen from nine in the 2018 financial year to seven in the 2023 financial year.
The total rebate has grown from about $800,000 annually to $1 million, with $4.6 million claimed over the last six years.
"McGrathNicol Advisory found that if eligible licensees did not receive the [gaming machine tax rebate] over the last 5 financial years, then they would have made losses totalling a cumulative $3.3 million," the government said.
"Whilst most eligible licensees are still making losses after receiving the GMTR, the losses are not as significant as they would be without the GMTR. The total cumulative loss after the GMTR was significantly lower at $0.5 million."
The government said the tax rebate had driven a noticeable increase in community contributions made by eligible clubs.
"Licensees appeared to be more able to allocate additional resources to community efforts, benefiting from retaining a larger portion of their gaming revenues," the review said.
Community contributions grew from $887,305 in the 2016 financial year to $1.01 million in the 2022 financial year.
The tax rebate may be linked to requirements to diversify from poker machine revenue in the future, the government said.
The findings from a review of the tax rebate, first introduced in 2017, was tabled in the Legislative Assembly last week.
The rebate allows small and medium clubs which take in no more than $4 million annually in gross gaming machine revenue to retain half of the gaming machine tax they would otherwise be required to pay.
The scheme also cuts the tax rebate received by clubs by 50 cents for every $1 over $4 million in gross gaming machine revenue each year.
The review of the scheme noted small and medium clubs, and club groups, had taken steps to become less reliant on poker-machine revenue.
"In doing so, clubs have undertaken initiatives such as improving non-gaming machine facilities and providing an increase in community contributions. On this basis, the government will retain the 50 per cent GMTR for small to medium clubs and club groups at this time," the review said.
"Based on the above findings the government is satisfied that the [gaming machine tax rebate] has achieved its primary purpose of supporting small to medium clubs and club groups to remain sustainable and financially viable.
"Going forward the government will consider whether the [gaming machine tax rebate] should be linked to diversification metrics."
Gaming Minister Shane Rattenbury is currently pushing the need for a central monitoring system for poker machines to further reduce gambling harm. The Greens leader has accused his Labor colleagues of getting in the way, saying he has faced "obstructions and delays".
