The table below shows the formulae used for computing private lotteries duty:
Formula for Non-GST registered clubs
9.5% x Turnover
30% x Sales
Formula for GST-registered clubs
9.5 % x (Turnover - GST chargeable)
Where GST chargeable @ 7% GST rate = 7/107 x (Turnover - Total Winnings)
30% x (Sales - GST chargeable)
Where GST chargeable @ 7% GST rate = 7/107 x (Sales - cash prizes)
Club A (not GST registered) operates 3 fruit machines in Aug 2014.
Its private lotteries duty for Aug 2014 is calculated as follows:
31 Aug 2014
(A)
30 Jul 2014
(B)
Difference
(C = A - B)
Duty (9.5% x C1)
* Based on the machines' soft meter readings
If Club A in Example 1 was a GST registered club, its private lotteries duty for Aug 2014 would be calculated as follows:
*Based on the machines' soft meter readings
Club B (not GST registered) has collected $3,000 from the sale of Tombola tickets in Sep 2014.
Club C (GST registered) has collected $3,000 from the sale of Tombola tickets in Sep 2014. Cash prizes worth $1,200 and prizes-in-kind worth $350 have been paid out to the winners.
# Only cash prizes are deductible when computing the GST chargeable on gaming supplies.
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If your club does not wish to claim cascade payouts as part of "Total winnings paid" to lower the amount of GST Chargeable on gaming supplies, your club should take note of the following: