ClubGRANTS FAQs

Who is eligible to participate?

Registered clubs with gaming machine profits over $1 million during a gaming machine tax year (1 September to 31 August), provided that the Independent Liquor & Gaming Authority (the Authority) is satisfied that the ‘required amount’ has been applied to expenditure on community development and support.

What is the ‘required (minimum) amount’?

To qualify for a tax rebate under the Scheme, a registered club must have applied not less than 0.75% of ‘prescribed profits’ (gaming machine profits over $1 million) to Category 1 projects and services that comprise community welfare and social services, community development, community health services and employment assistance activities.

What if a club does not meet the minimum 0.75% of prescribed profits to Category 1 projects and services?

The club will not be eligible for any tax rebate. Meeting the minimum Category 1 expenditure of 0.75% is a mandatory provision under ClubGRANTS Guidelines.

Mandatory provisions for the ClubGRANTS Guidelines are provided in Schedule 1 of the Gaming Machine Tax Act 2001.

What if a club has applied more than 0.75% of the prescribed profits to Category 1 projects and services?

Any balance remaining after reaching the minimum Category 1 expenditure may be applied to Category 2 projects and services.

Clubs may not claim a tax rebated for amounts applied to Category 2 projects and services that exceed 1.1% of the prescribed profits.

Who determines the categories of the grants?

Categories are established under the Gaming Machine Tax Act 2001 (Part 4 and Schedule 1). What constitutes eligible spend under these categories is outlined in the ClubGRANTS Guidelines. (PDF 381.97KB)

Is GST included in ClubGRANT funding?

Generally, a grant is not considered a payment for a supply if organisations are only required to meet eligibility criteria to receive the grant. Noting the eligibility criteria includes acquittal reporting, GST is not included for ClubGRANTS. 

Get more information on GST and tax.

Can a club claim a gaming machine tax rebate for funds provided under Category 3 to the ClubGRANTS Funds?

No. Club contributions to the Category 3 fund are automatically allocated by the Government from the gaming machine tax that a club pays each year.

Category 3 is now known as Infrastructure Grants and is managed by the Office of Responsible Gambling.

Get more information ClubGRANTS Category 3.

When do I need to submit my ClubGRANTS annual return?

To avoid paying additional tax, your ClubGRANTS annual return can be submitted from 1 September to the submission deadline advised annually by L&GNSW.

What if I don't lodge my return by the submission deadline advised annually by L&GNSW?

If you do not lodge your return by the submission deadline advised annually by L&GNSW, any gaming machine profit exceeding $1 million during the tax period will be taxed at the additional rate of 1.85%

How can I submit my ClubGRANTS annual return?

You must submit your ClubGRANTS annual return through the ClubGRANTS Online portal - please visit the ClubGRANTS website for more information on this process.

You can access the portal to input your gaming machine financial information before submitting your return between 1 September and the submission deadline advised annually by L&GNSW.

Clubs will need their MAXsys login details to submit their ClubGRANTS annual return through the ClubGRANTS Online Portal.

What about the MAXsys portal and how do I access the portals?

Clubs will have view only access to MAXsys to view the result of the assessment of their annual returns.

However, clubs will need their MAXsys login details to submit their ClubGRANTS annual return through the ClubGRANTS Online Portal.

For ClubGRANTS online portal, visit the Club GRANTS website for more information on this process or contact ClubASSIST:

• Call: 1300 730 001

For assistance logging into the MAXsys portal, please contact MAX:

• Call: 1800 307 551
• Email: dms@max.com.au

By what date should the successful applicants receive their funding for the expenditure to qualify in the current tax year?

Clubs must ensure that successful applicants receive their funding before 31 August for that expenditure to qualify for the current tax year. This means that cheques must be cleared, or cash advanced, before 31 August. The Authority will consider any funding received after this date to be part of the next tax year’s ClubGRANTS expenditure allocations. This may mean that a Club will need to make up the shortfalls in the current year’s expenditure.

Clubs should consider electronic payment options to ensure expenditures are cleared before 31 August to qualify for the current tax year.

Why is it important that clubs maintain sufficient documentation of all transactions pertaining to ClubGRANTS Category 1 and Category 2 expenditures?

Without sufficient documentation to support the ClubGRANTS expenditure claims, L&GNSW will not be able to determine if the expenditure meets the eligibility requirements of the Guidelines, which will result in the expenditure not being allowed in the tax year.

Read: paragraph 4.1 of the ClubGRANTS guidelines (PDF 381.97KB)

Why should clubs ensure that correct information is declared in the ClubGRANTS Annual Returns?

Annual ClubGRANTS returns are classified as official documents under the Gaming and Liquor Administration Act 2007 (GALA). False or misleading statements declared in a Club’s annual return could trigger an offence under section 36 of the GALA.

Clubs need to take appropriate steps to ensure the correct information is declared in their Annual ClubGRANTS returns when submitting them.

How many years are clubs required to keep reports from benefiting organisations?

Clubs are required to keep reports from benefiting organisations for at least five years. This is consistent with taxation law.

Read paragraph 4.7 of the ClubGRANTS guidelines (PDF 381.97KB)

What ClubGRANTS information must clubs make public?

Clubs should make every attempt to maintain, on a publicly accessible website, a list of programs, projects or services for which funding has been provided under Category 1 and Category 2. The list should be updated every six months.

Read paragraph 4.10 of the ClubGRANTS guidelines (PDF 381.97KB)

Clubs should advise their local committee of the URL of the webpage which contains the list.

Read paragraph 6.3.1 of the ClubGRANTS guidelines (PDF 381.97KB)

Benefiting organisations receiving ClubGRANTS Category 1 or 2 funds, are required to report back to the club(s) that provided them with funding upon completion of their project. 

If a club does not receive a required acquittal or progress report from a benefiting organisation, no further Category 1 funding should be considered for future ClubGRANTS funds, except in exceptional circumstances. Clubs should also consider not providing further Category 2 funding to benefiting organisations who have not provided acquittals or progress reports.

In some cases, a funded project will be only partly underway when a recipient wishes to apply for further funding for another project. In this situation, the applicant may submit a progress report form. If the project has been delayed, the recipient should provide a progress report to the club(s) advising why it has not run to schedule.

The ClubGRANTS Online Portal has reporting templates clubs may wish to utilise.

Why is a statutory declaration required for in-kind expenditure?

A statutory declaration is required because, unlike cash grants, there is less evidence of expenditure related to in-kind support.

The requirement for a statutory declaration applies to all in-kind grants.

Clubs may wish to consider using the Statutory Declaration template on the ClubGRANTS Online Portal.

Reporting requirements are as follows:

Can a club provide a grant to an organisation, if the project has already been completed?

An organisation cannot apply for ClubGRANTS funding for a project that is already completed. If the organisation is applying for new project grant, having already completed a project with a ClubGRANTS funding in the same gaming tax year, normal eligibility criteria apply, and the application should be judged on its merits and eligibility.

What is the process when the recipient has a change in circumstances within the ClubGRANTS year?

If within the same ClubGRANTS year, recipients should advise the funding club of any changes in circumstances, such as any variation on how the money will be spent. Organisations must obtain the club’s written approval before making any changes. Acquittal reports should be proportional to the amount of funding received.

What is the process when the recipient is unable to complete their project?

If a project cannot be completed, and allocated ClubGRANTS funding remains unspent, a club may request permission in writing from the Authority to reallocate this funding to a similar project or organisation after the end of the tax year.

The onus is on the Club to provide sufficient information explaining the extenuating circumstances why the Authority should allow this. Requests for funding reallocation should be sent to gaming.probity@liquorandgaming.nsw.gov.au

Read: paragraph 4.2 of the ClubGRANTS guidelines (PDF 381.97KB)

What is a local committee and when is one required?

ClubGRANTS is a State Government initiated scheme and should have a broad consultative and advisory process. ClubGRANTS local committees must be established in each local government area (LGA) where the total ClubGRANTS Category 1 liability of local qualifying clubs exceeds $30,000 in the tax year.

A local committee is to comprise of representatives from:

• ClubGRANTS qualifying clubs
• Local council
• Department of Communities and Justice (DCJ)
• A community organisation endorsed by the Office of Responsible Gambling
• The Local Aboriginal Community where appropriate

Local committees must meet:

1. at least once a year, if the local committee operates in a local government area where the total ClubGRANTS Category 1 Liability of local qualifying clubs is $50,000 or less in the tax year.
2. at least twice a year if the local committee operates in a local government area where the total ClubGRANTS Category 1 Liability of local qualifying clubs exceeds $50,000 in the tax year.

What is the role of a local committee?

The role of a local committee includes:

• Identifying the community service priorities for Category 1 expenditure in their LGA based on evidence provided by local government social plans and the Department of Communities and Justice advice on regional and whole-of-government service priorities
• Assess Category 1 applications received as to whether they align with the identified community service priorities

Local committees do not determine the likely eligibility of the expenditure. Determining eligibility is a matter for clubs and L&GNSW.

For further information: Refer to paragraph 6 of the ClubGRANTS guidelines (PDF 381.97KB), visit the Local committee’s page on our website, or refer to the ClubGRANTS Local Committees fact sheet.

How is a local committee formed?

The local council representative will be responsible for convening the first meeting of the local committee. If the council is unable to undertake this task, the Department of Communities and Justice would be expected to convene the meeting.

If both local council and the Department of Communities and Justice are unavailable, a local committee cannot be formed.

Our ClubGRANTS Local Committees fact sheet has a list of the relevant contacts for the Department of Communities and Justice.

What should I do if a local committee is not formed?

In instances where a local committee is not formed, the club should contact the Office of Responsible Gambling (ORG) at info@responsiblegambling.nsw.gov.au to confirm that they have made attempts to engage both the Local Committee and DCJ but have been unsuccessful.

ORG will develop a list of expenditure priorities for the local government area on request of a qualifying club in that area.

In these instances, clubs will also need to submit the required report to L&GNSW to comply with paragraph 2.1.6 of the Guidelines. This report should detail the ‘exceptional circumstances’ that prevented the local committee from being established.

Read: paragraph 6.4 of the ClubGRANTS guidelines (PDF 381.97KB) For broader information on local committees, please visit the Local Committee page on the website or ClubGRANTS Local Committees fact sheet.

Who can sign a Certificate of Attendance?

Each qualifying club must be provided with a certificate of attendance, signed by the local committee convenor, indicating their attendance or otherwise at local committee meetings, for forwarding with their annual return to the Authority at the end of the tax year.

Without a representative from local council or the Department of Communities and Justice to convene the first meeting, a local committee cannot be formed and there is no requirement for a certificate of attendance.

Under no circumstances is it appropriate for a qualifying club representative to sign a certificate of attendance, including in the role of chair of the committee.

What is the minimum requirement for ClubGRANTS local committee recommendations for Category 1 funding?

Clubs must not allocate less than 75% of Category 1 funds in accordance with the local committee’s recommendations.

What happens when the club does not meet the above requirement?

Clubs who do not meet this requirement will need to submit a detailed report to L&GNSW within 45 days of finalising all Category 1 funding decisions. The latest date clubs can submit a report is October 15 of each year, that being 45 days after the last day of the gaming tax year (August 31).

It is recommended that clubs aim to finalise their funding decisions earlier in the tax year to avoid delays and allow adequate time for report preparation.

Clubs who fail to lodge the required report may not receive a tax rebate and will likely be selected for audit. Reports should be submitted to gamingaudit.revenue@liquorandgaming.nsw.gov.au

The ClubGRANTS Online Portal has a report template clubs can use.

Read paragraph 2.1.6 of the ClubGRANTS guidelines (PDF 381.97KB)

Can a Club allocate expenditure for overseas travel and/or education programs?

Expenditure may only be allocated for overseas travel and/or education programs, if approved by the Independent Liquor & Gaming Authority. To apply for this approval, the applicant must make a written request to the Authority and sufficiently demonstrate how the proposed travel meets expenditure eligibility criteria. Applications should be sent to gaming.probity@liquorandgaming.nsw.gov.au

Read: paragraph 2.3.7 of the ClubGRANTS guidelines (PDF 381.97KB)

Can a club request an exemption to the 20% in-kind expenditure?

‘In kind’ expenditure cannot exceed 20% of combined Category 1 and Category 2 ClubGRANTS expenditure. However, clubs may apply to the Authority for exemptions to the 20% limit.

Applications for exemptions must be accompanied by such information as may be required by the Authority. Applications should be sent to gaming.probity@liquorandgaming.nsw.gov.au

Read: paragraph 2.1.5 of the ClubGRANTS guidelines (PDF 381.97KB)

Reallocation of unspent funding?

If a project cannot be completed, and allocated ClubGRANTS funding remains unspent, a club may request permission in writing from the Authority to reallocate this funding to a similar project or organisation after the end of the tax year.

The onus is on the Club to provide sufficient information explaining the extenuating circumstances why the Authority should allow this. Requests for funding reallocation should be sent to gaming.probity@liquorandgaming.nsw.gov.au.

Read: paragraph 4.2 of the ClubGRANTS guidelines (PDF 381.97KB)

The broader intent of the ClubGRANTS Scheme is for the provision of frontline services to local communities; and to ensure that the disadvantaged in the community are better positioned.

When assessing ClubGRANTS applications, clubs should have regard to the broader intent of the scheme and its key objectives, including:

• Contributing to the welfare and broader social fabric of the local community and aimed at improving the living standards of low-income and disadvantaged people (Category 1), or
• Contributing to community development and support activities and projects (Category 2).

Liquor & Gaming NSW can provide general advice regarding the scheme and refer clubs to relevant sections of the Guidelines regarding eligibility. The assessment of eligibility to provide funding is ultimately the responsibility of the club. However, it is important for clubs to understand, a club's view regarding the eligibility of a program or project may not reflect Liquor & Gaming NSW's assessment at the end of the gaming tax year.

What should a club do when the Guidelines do not provide clarity on the type of funding?

L&GNSW recommend that where there is a lack of clarity in the Guidelines for particular projects or services clubs wish to provide funding for, clubs should have regard to the broader intent of the scheme and its key objectives in their decision making. Clubs should also consider relevant provisions in the Guidelines, including how these provisions interact with each other, when forming a view about the eligibility of a program or project.

L&GNSW also recommend that clubs establish a decision-making process to document their deliberations and the rationale for determining the eligibility of their grants and have these records available for any future compliance activities.

Are there any resources available to help me decide the eligibility of ClubGRANT funding?

L&GNSW has developed a ClubGRANTS checklist (PDF 108.94KB) as a guide to assist clubs in their decision-making process regarding applications for ClubGRANTS funding and ensure the grant meets the requirements under the ClubGRANTS guidelines (PDF 381.97KB)

Can funding be provided to schools?

The Guidelines do not directly address the eligibility of funding to schools. If a club chooses to provide funding to a school under the ClubGRANTS Scheme, the club must consider how the specific program or project fits within the broader intent of the scheme and its key objectives, including how the school’s projects or programs will have a benefit to the broader community, disadvantaged groups in particular.

Clubs also need to consider the general rule that it is important that funding preference is not given to projects or services that can be readily assisted by an existing Government funding program.

Can funding be provided directly to individuals?

The Guidelines do not directly address the eligibility of funding to individuals. The Guidelines speak to projects or programs that have a benefit to the broader community. Clubs need to consider how funding of a specific individual fits within the broader intent of the scheme and its key objectives.

Can clubs claim expenditure from raffles or fundraisers?

If a club chooses to hold raffles or fund-raising events where no grant application was received and proceeds go to charities of the club’s choice, any expenditure towards prizes, or the proceeds provided to the charity would not be eligible under the ClubGRANTS Scheme.

Can a club claim expenditure provided to organisations outside of NSW?

Expenditure outside NSW is not eligible for ClubGRANTS. There are certain exceptions including locally based activities that are of a genuine cross-border nature or nationally operating organisations with a presence in NSW. Cross-border relates to activities in towns which border NSW and another state, such as Queanbeyan and Canberra in the ACT or Albury and Wodonga in Victoria.

What should clubs be aware of when participating in sponsorships arrangements?

L&GNSW does not discourage Clubs from participating in sponsorship arrangements outside the ClubGRANTS scheme.

However, for funding to be eligible under ClubGRANTS, Clubs should take note of the requirement at clause 2.3.1 of the ClubGRANTS guidelines (PDF 381.97KB) (September 2023 version), which states that expenditure is ineligible if the organisation receiving the expenditure makes a comparable reciprocal contribution to the Club in return for the expenditure.

Where the club sponsors an event and the organisation receiving the funding makes a contribution to the Club in return for the grant, this expenditure will not be eligible. An example would be purchasing a ticket for a table to attend a fundraising charity event.

Are sponsorship arrangements considered a reciprocal contribution?

The Guidelines state that the reciprocal contribution must be comparable so each situation will need to be assessed on a case-by-case basis. For example, if a recipient is providing advertising or marketing for a club as part of a sponsorship arrangement, they are making a reciprocal contribution that has the potential to financially benefit a club. To determine if it was comparable, the cost of advertising or marketing involving the use of the club’s logo plus any likely financial benefit as a result of the advertising would need to be calculated to determine if it is equivalent to the amount of the grant.

What if the recipient of the funding themselves willingly and independently promotes and/or publicises the Club?

If a club provides expenditure to an entity, and the club has not made a request for sponsorship benefits, the expenditure would be allowable as long as the entity has demonstrated that the use of the funding aligns with the eligibility requirements in the Guidelines.

In other words, if a club provides funding to a sporting team and the team voluntarily promotes the club on social media, that does not breach the prohibition on reciprocal contributions.

Note, this requirement is additional to the basic requirement that all funding must meet the criteria for Category 1 or 2 funding.

Can a benefitting organisation purchase items from a club or pay for a function at a club, using money that was provided to them by the same club as a grant?

No. This would be considered a reciprocal contribution. For example, paying the money to the club for receiving the grant (see clause 2.3.1).

However, the club may provide a benefitting organisation with an in-kind grant (i.e. provision of vouchers or to host and cater for a function) and claim this under ClubGRANTS.

Is there a reciprocal contribution when a Category 1 benefitting organisation receives free room hire only?

Category 1 expenditure ‘in kind’ provided to the community is acceptable provided that claims for such expenditure do not exceed market value, are properly documented and are eligible for Category 1 expenditure as defined in the Guidelines. Expenditure ‘in kind’ is not acceptable if the organisation receiving the expenditure makes a comparable reciprocal ‘in kind’ contribution to the club. Examples could include the club reaching an agreement with the organisation that they promote the club’s facilities on social media in exchange for free room hire, or where the room hire is for an event where patrons purchase food and drinks from the club.

Can a club claim expenditure on Club Bingo and/or Charity Housie?

Club Bingo

No. Expenditure cannot be provided for the conduct of Club Bingo because it is conducted for the purpose of promoting a club's services.

Read paragraph 2.3.5 of the ClubGRANTS guidelines (PDF 381.97KB)

Charity Housie

Yes. The market value of a club providing a venue, equipment or a staff member for the conduct of Charity Housie is an allowable, in-kind expenditure under Category 1 or Category 2 - provided that the funds raised through the Charity Housie are spent on activities covered by the respective Category.

Where a Charity Housie promoter provides a club with an in-kind benefit to conduct a game, such as supplying staff, the club must deduct the market value of this staffing in-kind benefit from the money raised for the charity.

For example, where a club provides a venue to conduct Charity Housie and the charity provides staff to also conduct Club Bingo, the club must deduct the market value of the staff supplied from the market value of the venue provided to calculate the allowable in-kind expenditure.

Read: paragraph 2.3.5 of the ClubGRANTS guidelines (PDF 381.97KB)

Can a club claim expenditure for upgrading or improving a club's facilities?

Yes, under Category 2 funding for upgrading buildings, improving access to buildings, or upgrading communications, technology, or connections to utilities for club facilities is eligible funding. This is on the condition that the building or facility is not primarily commercial or related to gaming in nature and is not operated on a for-profit basis.

The Guidelines also permit expenditure under Category 2 for work which is carried out on facilities associated with a club's core activities for example: a golf club's golf course or a bowling club's bowling green. This includes wages paid to staff to work on maintenance of the club's facilities.

Read: paragraph 2.2 of the ClubGRANTS guidelines (PDF 381.97KB)

What if I am a Registered Club with distinct premises (amalgamated or otherwise)?

In respect of a registered club whose premises include two or more areas that are determined by the Authority to be separate and distinct premises, the provisions of the Gaming Machine Tax Act 2001 apply as though each of those premises were a separate registered Club, and a reference in those provisions to a gaming machine kept on the premises of the Club is to be construed accordingly (s. 23 of the Act).

This means that clubs cannot claim expenditure by one club to another within a group (see further below).

Is expenditure allocated by one premises of a club to another premises allowable under clause 2.2 as expenditure allocated to a club’s core activities?

No. As s. 23 of the Gaming Machine Tax Act 2001 treats separate premises of a club as separate registered clubs, expenditure can only be allocated to the core activities facilitated at the premises that incurs tax and lodges the claim.

What constitutes “cash expenditure”?

Cash expenditure is when the club makes cash transfer/payment directly to the grant recipients or payment of invoices relating to work carried out on facilities associated with a club's core activities for example: a golf club's golf course or a bowling club's bowling green. This includes wages paid to staff to work on maintenance of the club's facilities.

What constitutes “in kind” expenditure?

In kind expenditure is when the club uses its own funds to purchase goods or services on behalf of another entity (including a sub club) and the goods or services are then provided to the other entity. This is classified as an ‘in kind’ transaction.

Examples of in-kind expenditures include vouchers that can only be redeemed at the club, free venue hire, equipment or staff members, clubs paying invoices on behalf of the grant recipient etc.

How is in kind expenditure to be calculated?

In kind expenditure is to be calculated at market value.

Read: paragraphs 2.1.5 and 2.2.2 of the ClubGRANTS guidelines (PDF 381.97KB)

Can a club claim funds spent on gambling counselling services?

No. The Gaming Machines Act 2001requires a club to enter into arrangements for gambling counselling services to be made available to club patrons.

As this is a mandatory requirement, clubs cannot claim a tax rebate for funds provided to services that provide gambling counselling services to its patrons.

Read: paragraph 2.3.4 of the ClubGRANTS guidelines (PDF 381.97KB)

What expenditure would fall under the category of expenditure on a club’s commercial activities?

Expenditure on club’s commercial activities, gaming activities or activities directly relating to fulfilling its legislative obligations are disallowed under the guidelines (PDF 381.97KB)

Examples of these expenditures include anything related to for-profit activities such as health care companies, auditing fees, accounting software subscriptions, and wages for employees managing ClubGRANTS.

When do the changes come into effect?

The new guidelines are now in effect, with all expenditure from 1 September 2025 (the current gaming machine tax year) eligible to be claimed in the 2025/26 ClubGRANTS returns by clubs.

Why are claims for statewide services limited to only 20% of a club’s Category 2 funding?

This limit helps make sure other eligible projects and services like veterans’ services, arts and cultural activities and grassroots sport are not impacted.

Does this impact expenditure on eligible organisations in Category 1?

No. If a statewide service provider is eligible for Category 1 expenditure for your club, meaning they deliver their service in your Local Government Area (LGA), you can claim this expenditure within Category 1.

What is the approval process with L&GNSW?

Clubs must make a written application to L&GNSW. The application should outline how the expenditure meets the definition of a statewide service provider. It should include evidence of the service being provided across at least 10 LGAs including at least one regional LGA and evidence that the organisation receiving the funding is registered with the Australian Charities and Not-for-profit Commission (ACNC).

Applications are to be made by emailing the Director, Liquor & Gaming NSW at: gaming.probity@liquorandgaming.nsw.gov.au

Why must organisations deliver services across at least 10 LGAs (including at least one regional LGA) to be eligible?

This separates the offering of a statewide service from organisations who only offer services across LGAs (such as neighbouring LGAs).

What defines a regional LGA?

A regional LGA is any LGA in NSW that is not a metropolitan area as defined in section (128) of the Liquor Regulation 2018. Metropolitan LGAs are defined as the Greater Sydney Region or the Central Coast, Lake Macquarie, Newcastle, or Wollongong.

For further information, refer to the ClubGRANTS Guidelines (PDF 381.97KB) and the news update about statewide services now being eligible for ClubGRANTS.