Review of the Registered Clubs Industry in NSW - Clubs NSW

4 Measuring and reporting on club contributions
Table 4.2 IPART’s estimate of the value of the clubs industry’s direct social
contributions (2007)
Industry values
$ million
Direct cash contributions 91
Direct in-kind contributions
Market value of facilities 1,244
Less revenue received by clubs for their
568
facilities
Volunteer hours 44
Total value of social contribution 811
This estimated value has been revised downwards since the release of IPART’s draft
report. In preparing the draft report, IPART only had access to preliminary data on
the total levels of volunteer labour for the industry. Disaggregated data have since
become available, and IPART has adjusted its estimated value accordingly.
Specifically, volunteer hours in IPART’s draft report included $82 million in
volunteer hours spent in the provision of sporting facilities and community facilities
(eg, bar, restaurant and conference facilities). These hours are accounted for in the
estimated value of direct in-kind contributions and thus have been excluded from the
estimated value of volunteer labour. The value of volunteer labour does include the
hours contributed by club directors and other volunteers in the industry.
The estimated value of the clubs industry’s direct social contributions for 2007 should
be considered in the context of the following:
The registered clubs industry’s gaming machine income in the 2007 gaming
machine tax year was $2.8 billion. 73 As Chapter 6 will discuss, gaming machine
revenue typically subsidises club activities such as bar and restaurant operations,
as well as the provision of community facilities (including sporting fields, bowling
greens, golf courses and meeting rooms). This enables clubs to provide facilities
and services at prices below the market rate (as recognised through the value of
direct in-kind contributions of $676 million, or $1,244 million less $568 million), as
well as make direct cash contributions to their communities.
The gaming machine revenue tax rates for registered clubs are around half of
those that apply for NSW hotels. In effect, this provides the clubs industry with a
tax concession of approximately $484 million for 2007/08.
IPART notes that, in 2007, the clubs industry received total revenue of $5.4 billion,
and incurred $4.2 billion in expenditure for all operations. 74 The difference between
total revenue and expenditure was $1.2 billion. As not-for-profit entities, the
difference between clubs’ revenue and their expenditure clearly has a relationship to
their social contributions (ie, this difference can only be spent on providing benefits
to members in line with the club primary purpose or making contributions to the
73 Calculated as gaming machine revenue (excess of revenue from machines over outgoings from
machines) less gaming machine tax/duty.
74 ACG, Socio-Economic Impact Study of Clubs in NSW (2007), 2008, p 15.
76 IPART Review of the Registered Clubs Industry in NSW