A new tax will be imposed on poker machines in April, and local community groups are not pleased. They are fighting against the tax, as they claim it will hurt their funding. It is a well-known fact that profits from pokies are used to fund a wide range of community groups and initiatives. Every year, millions of dollars that are spent on poker machines are pumped back into the community to benefit education, health and sports programs.
Now, local groups are concerned that their funding will be compromised, if a new tax increase in introduced. Starting April 1st, 2014, pokie clubs in the middle and top tax brackets will have to pay an additional 4.2% on their pokie taxes. After the tax increase, most clubs will be paying between out 34% and 36% of their pokie profits as taxes. In some cities, the tax will equal upwards of 45% of their profits.
While the tax increase is aimed at benefitting the local community, organizations have come forward to make their concerns known. Clubs across Victoria have stated that pokie clubs provide sponsorship and other supports to useful community programs, which could be compromised by an increase in taxes.
“This will not only affect the viability of community clubs, it will also mean less funding for all sporting and other groups that clubs fund,” says Brendan Bell of local community group, Red Cliffs Club. “The State Government has shown a lack of understanding of how much local groups in our area rely on the support we provide.” Local community organizations are disappointed that they were not consulted about the change in pokie taxes.
They feel as though they could have provided some insight which would have not only benefited the state government but also ensured that their funding was not compromised by a significant tax hike.
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