The table below shows the formulae used for computing private lotteries duty:

FormulaFruit MachinesTombola / Scheduled Lottery / Continuous Lucky Draw

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)

Sample Computations of Private Lotteries Duty

Example 1: Compute Duty On Fruit Machines (Non-GST Registered Clubs)

Club A (not GST registered) operates 3 fruit machines in Aug 2014.

Its private lotteries duty for Aug 2014 is calculated as follows:

 Turnover* for Machine

 31 Aug 2014

(A)

30 Jul 2014

(B) 

Difference

(C = A - B) 

 1$  1,540,535.80 $  1,523,932.40 $  16,603.40
 2$  4,521,545.90 $  4,500,567.10 $  20,978.80
 3$15,640,364.00 $15,531,974.00 $108,390.00
  Turnover for all machines (C1) $145,972.20

     Duty (9.5% x C1)

 $  13,867.35


* Based on the machines' soft meter readings

Example 2: Compute Duty on Fruit Machines (GST registered clubs)

If Club A in Example 1 was a GST registered club, its private lotteries duty for Aug 2014 would be calculated as follows:

 Turnover* for Machine

31 Aug 2014

(A) 

30 Jul 2014

(B) 

Difference

(C = A - B) 

 1$  1,540,535.80 $  1,523,932.40 $  16,603.40 
 2$  4,521,545.90  $  4,500,567.10  $  20,978.80 
 3$15,640,364.00 $15,531,974.00  $108,390.00 
 Turnover for all machines (C1)     $145,972.20 

 

 Total winnings paid

31 Aug 2014

(A) 

30 Jul 2014

(B) 

Difference

(C = A - B) 

 1 $  1,268,552.40 $  1,255,809.80  $ 12,742.60
 2 $  2,161,011.10 $  2,151,854.50 $   9,156.60
 3 $10,721,234.00 $10,630,054.80$  91,179.20 
 Total winnings paid for all machines (C2)$113,078.40 
 GST chargeable on gaming supplies [7/107 x (C1 - C2)]  (D)$    2,151.93 
 Duty [9.5% x (C1 - D)]$  13,662.92


*Based on the machines' soft meter readings

Example 3: Compute Duty On Other Private Lottery Types (Non-GST Registered Clubs)

Club B (not GST registered) has collected $3,000 from the sale of Tombola tickets in Sep 2014.

Private Lotteries Duty on Tombola for Sep 2014
(30% x $3,000) = $900.00

Example 4: Compute Duty On Other Private Lottery Types (GST Registered Clubs)

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.

GST Chargeable on Gaming Supplies Private Lotteries Duty on Tombola for Sep 2014
7/107 x ($3,000 - $1,200 # ) = $117.76 30% x ($3,000 - $117.76) = $864.67

# Only cash prizes are deductible when computing the GST chargeable on gaming supplies.

FAQs

My club decides not to claim the cascade payouts when computing private lotteries duty, what should my club take note of when completing Form PL-R and the GST Return?

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:

  1. Form PL-R : Do not enter any amount under Line 1b(ii) '"Jackpot prizes awarded".

  2. GST Return : Do not reduce the standard-rated supplies by the cascade payouts.