Nsw Poker Machine Licences
The NSW Government has announced gaming machine tax relief measures as part of its economic stimulus package to help clubs and hotels impacted by COVID-19
- The GMT is a number which limits how many gaming machine entitlements (GMEs) – and, for hotels, poker machine permits (PMPs) – that a club or hotel licence can hold. A venue must have a GME, or PMP, for each gaming machine they operate. A hotel's GMT cannot exceed 30.
- The Alliance for Gambling Reform today condemned the NSW Coalition Government for capitulating to the gambling industry again and locking in up to $30 billion worth of poker machine losses during the next term of Government in a new Memorandum of Understanding signed with Clubs NSW on Saturday.
- According to the poker machine, $3,000 was gambled, and $300 (all of Gladys’ money) was kept. That means that the machine paid out $2,700 which is the 90 per cent return.
Amusement devices for poker machine entitlements 19 23 Transfer of poker machine entitlements when hotelier’s licence cancelled or surrendered 19 24 Transfer of poker machine entitlements when club registration cancelled or surrendered 20 25 Requirement to forfeit poker machine entitlements if hotelier’s licence is removed to other premises. NSW was the first state to allow gambling venues to reopen, and government stimulus payments are likely to be boosting poker machine profits, similar to the “pokies and plasma payouts” of 2008.
Gaming machine tax is paid on the metered profits of gaming machines in clubs and hotels within NSW. The tax is
- based on information collected by the Centralised Monitoring System (CMS).
- administered by Liquor and Gaming NSW
- calculated at varying rates according to the profits generated
- collected by Revenue NSW on behalf of Liquor and Gaming NSW and in accordance with the Gaming Machine Tax Act 2001 No 72.
Paying taxes
If you operate gaming machines, you must pay the gaming machine tax quarterly by direct debit.
- Email your direct debit authority form to Liquor and Gaming.
- Data Monitoring Services (DMS) will send you a tax invoice 14 days after the end of each assessment period.
- We will debit your account on the 21st day after the end of the assessment period, or on the following working day if the 21st day falls on a weekend or public holiday.
- We will send you a reassessment if there is any change to the original tax invoice.
- If you do not pay by the due date you’ll be charged interest, calculated daily, on all outstanding amounts.
If you don’t pay the full amount by the due date, you may face legal proceedings and the suspension or cancellation of your gaming licence.
Invoice enquiries
If you have any questions about your tax invoice or would like to change the way it is sent to you
- contact Data Monitoring Services.
To challenge the calculation or reasons provided
- contact Data Monitoring Services if you disagree with their calculation.
- contact Liquor and Gaming NSW if you disagree with the reasons provided.
Tax payment due dates
The gaming machine tax is charged quarterly.
Due dates for clubs
| Assessment period | Due date | |
|---|---|---|
| 1 | 1 December to 28 February | 21 March |
| 2 | 1 March to 31 May | 21 June |
| 3 | 1 June to 31 August | 21 September |
| 4 | 1 September to 30 November | 21 December |
Due dates for hotels
| Assessment period | Due date | |
|---|---|---|
| 1 | 1 January to 31 March | 21 April |
| 2 | 1 April to 30 June | 21 July |
| 3 | 1 July to 30 September | 21 October |
| 4 | 1 October to 31 December | 21 January |
Paying by instalments
If you need financial support and are approved by Liquor and Gaming NSW, you can pay your gaming machine tax in three equal monthly instalments.
To find out if you are eligible for the tax deferral scheme, send an email to Liquor and Gaming NSW and include your
- licence number
- venue name
- period applicable.
If you’re not eligible for the tax deferral scheme contact us to request a payment arrangement.
Rates
You do not have to pay gaming machine tax if your quarterly profit from gaming machines is
- less than $250,000 and you operate a club
- less than $50,000 and you operate a hotel.
Tax rates for clubs
The rate for profits of more than $250,000 are set out below.
| Quarterly profit from gaming machines | Rate |
|---|---|
| Over $250,000 up to $450,000 | 28.05% |
| Over $450,000 up to $1.25 million | 18.05% |
| Over $1.25 million up to $2.5 million | 22.55% |
| Over $2.5 million up to $5 million | 24.55% |
| Over $5 million | 26.55% |
Clubgrants
Under the Clubgrants scheme
- if your annual tax is over $250,000, it includes a 0.4 per cent contribution
- if your annual profit from gaming machines is more than $1 million, you must pay an additional 1.85 per cent of the amount over $1 million, unless you contribute the same amount to community projects.
Visit Liquor and Gaming NSW to find out more about tax rates for clubs.
Tax rates for hotels
The rate for profits of more than $50,000 are set out below.
| Quarterly profit from gaming machines | Tax rate |
|---|---|
| Over $50,000 up to $250,000 | 33% |
| Over $250,000 up to $1.25 million | 36% |
| Over $1.25 million | 50% |
Visit Liquor and Gaming NSW to find out more about tax rates for hotels.
Tax adjustments
Your quarterly tax payments will be compared with the annual amount payable and you may be eligible for an adjustment based on your annual profit from gaming machines.
Tax adjustments for clubs
After 31 August each year, you can apply to Liquor and Gaming NSW for an annual adjustment.
| Annual profit from gaming machines | Annual tax rate |
|---|---|
| Less than $1 million | You pay no tax |
| Over $1 million and up to $1.8 million | 29.9% on the amount over $1 million |
| Over $1.8 million up to $5 million | 19.9% |
| Over $5 million up to $10 million | 24.4% |
| Over $10 million up to $20 million | 26.4% |
| Over $20 million | 28.4% |
Tax adjustments for hotels
Nsw Poker Machine Entitlements For Sale
After the end of a financial year, you can apply to Liquor and Gaming NSW for an annual adjustment.
Nsw Poker Machine Licence Value
| Annual profit from gaming machines | Annual tax rate |
|---|---|
| Up to $200,000 | 0% (nil) |
| Over $200,000 up to $1 million | 33% |
| over $1 million up to $5 million | 36% |
| Over $5 million | 50% |
| Ruling number | DUT 014 |
| Date issued | 26 March 1999 |
| Issued by | JW Purcell Chief Commissioner of State Revenue |
| Effective from | 26 March 1999 |
| Effective to | 1 July 2016 |
| Status | Current |
Preamble
Under the provisions of the Liquor Act 1982, the licensee of a hotel holds the poker machine permits of that hotel. A permit is a “statutory permission” and is dutiable property under the Duties Act 1997. Any dutiable transactions over a permit are therefore subject to duty. This gives rise to 2 problems.
First, where a hotel is owned by a company, the manager of the hotel holds the poker machine permits. Therefore, if there is a change of manager at the hotel, the poker machine permits must also be transferred to the new manager.
Section 65 of the Duties Act was recently amended to provide an exemption from duty in respect of the transfer of a liquor licence where there was a change of managers, on the basis that there was no change in beneficial interest or contemplation of such a change. Requests were made to provide a similar exemption from duty in cases where the transfer of permits occurred as a consequence of a transfer of a licence where that transfer is itself exempt under the provisions of the Duties Act.
Secondly, transfers of poker machine permits can occur following a vesting by or as a consequence of a court order of the Licensing Court of NSW. A vesting of this type is also a dutiable transaction on which ad valorem duty is payable. While some transfers of dutiable property are given concessional treatment in specified circumstances, a vesting of a poker machine permit by or as a consequence of a court order is not given similar relief in the same circumstances. Requests were made for the vesting by court order of poker machine permits to be given similar concessional treatment.
Ruling
Nsw Gaming Machine Licences
The Treasurer has given approval for the Duties Act 1997 to be administered on the basis that:
a transfer of a poker machine permit issued pursuant to the Liquor Act 1982, is exempt from duty where the transfer of the permit occurred as a consequence of a transfer of a licence that is itself exempt under the provisions of the Duties Act; and
no duty is chargeable on the vesting of a poker machine permit by or as a consequence of a court order under the Liquor Act if the Chief Commissioner is satisfied that:
there is no change of, or contemplated change in, the beneficial ownership of the permit as a consequence of the vesting, or
the vesting is a consequence of an agreement for the sale or transfer of dutiable property on which the duty chargeable in respect of the agreement has been paid.
The Variation to Statute will operate with effect from 23 October 1998 and continue until appropriate amendments can be made to the Duties Act.
Unlike liquor licences, poker machine permits may also be transferred from one hotel to another, for example between managers of hotels in a hotel chain. These transactions are generally commercially driven and do not occur as a result of a legislative requirement. Consequently, transfers of this nature will be chargeable with duty under the normal transfer provisions of the Duties Act.