Review of the Registered Clubs Industry in NSW - Clubs NSW

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4 Measuring and reporting on club contributions IPART also supports the continuation of other quantification exercises, such as ClubsNSW’s choice modelling exercise. Attempts to quantify the benefits of clubs’ services and infrastructure such as this offer additional insight into the contribution clubs make to communities. In addition, IPART considers that it is important that all valuation and other quantification exercise be transparent and open. To produce a credible valuation, all results need to be completely transparent and accompanied with detailed explanations of the assumptions and estimation procedures used. Where this does not occur, such results lack credibility. Allowing transparency and scrutiny gains the confidence of external stakeholders and government, which increases the likelihood that the results of the valuation will be accepted. Recommendations 5 That IPART’s preferred approach for the measurement of club-provided social infrastructure and services be adopted. Under this approach, the direct social contribution of clubs is calculated via the sum of cash contributions, volunteer labour and the market value of in-kind provision and maintenance of community and sporting facilities, less total revenue received for this provision. 6 That ClubsNSW assume responsibility for conducting future valuations of the clubs industry’s social contributions to the NSW community on a four-yearly basis. If it chooses to use a different valuation methodology from IPART’s preferred approach, ClubsNSW should be transparent and open about its methodology and results. 78 IPART Review of the Registered Clubs Industry in NSW
5 Refining the Community Development and Support Expenditure Scheme 5 Refining the Community Development and Support Expenditure Scheme The NSW Government established the Community Development and Support Expenditure (CDSE) Scheme in 1998 to encourage registered clubs earning large profits from gaming machines to be involved with and provide financial support for locally-based community programs and services. It does this by providing a gaming machine revenue tax offset of up to 1.5 per cent to clubs that make financial contributions to eligible recipients. This is known as a ‘CDSE liability’. 76 More than one-third of all registered clubs in NSW participate in the CDSE Scheme. In 2006/07, clubs reported CDSE contributions worth $71.5 million against a CDSE liability of $40.2 million. 77 It is the only statutory scheme that requires clubs to record and report on the social contributions they make. IPART examined the CDSE Scheme, taking into account that the OLGR published revised guidelines for the scheme in October 2007, after reviewing these guidelines and consulting with stakeholders. Because that review concluded so recently, IPART attempted to avoid any duplication of OLGR’s work in its own review. Where possible, IPART did not focus on the inner mechanics of CDSE Scheme operation, but chose to address high level issues or those where it felt significant attention was warranted. IPART found that that the CDSE Scheme is generally an effective means for clubs to support the NSW community. The consistent message from stakeholders was that the Scheme is an efficient and effective way of channelling funds to worthy local community causes. Clubs, community groups such as NCOSS, government (OLGR) and industry peak bodies (such as ClubsNSW) all expressed support for the Scheme. Nevertheless, IPART found that there are some areas where minor changes will help enhance the Scheme’s operation. These areas include: improved promotion of the Scheme encouragement for clubs without a CDSE liability to channel their community contributions through a CDSE local committee additional support for the Scheme’s local committees by OLGR 76 While the term ‘CDSE liability’ is used in the guidelines for the scheme, IPART notes that the scheme is not compulsory for clubs. Clubs with gaming machine revenue greater than $1 million per annum that do not participate in the scheme simply do not receive the tax offset. 77 Advice from OLGR. Review of the Registered Clubs Industry in NSW IPART 79
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Independent Pricing and Regulatory
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© Independent Pricing and Regulato
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Contents 6 Strengthening the financ
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Executive Summary Executive Summary
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Executive Summary estimated the val
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Executive Summary Therefore, IPART
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Executive Summary However, IPART al
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Executive Summary List of Recommend
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Executive Summary 15 Once the stand
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Executive Summary 29 That ClubsNSW
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Executive Summary 46 That ClubsNSW
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Executive Summary 60 That OLGR deve
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1 Introduction 1 Introduction Over
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1 Introduction 1.1.2 Review’s foc
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1 Introduction 1.2 Other reviews an
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1 Introduction 1.3 The structure of
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9 Improving corporate governance Th
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10 Helping clubs better understand
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11 Making it easier for clubs to am
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12 Making it easier for new clubs t
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13 Removing unnecessary regulatory
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14 A framework for a management pla
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A Terms of reference A Terms of ref
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A Terms of reference The proc
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B Terms of reference checklist Term
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C List of submitters, roundtable pa
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D Gambling expenditure and problem
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E IPART’s methodology for recordi
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F ACG’s approach to measuring the
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G ClubsNSW - steps to establishing
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Glossary and Abbreviations Glossary
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Review of the Registered Clubs Industry in NSW - Clubs NSW

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