Community Benefit Fund

Annual Report
2012–2013

Community Benefit FundAnnual Report 2012-2013

Hon David Tollner MLA
Minister forBusiness
GPOBox 3146
DarwinNT0801

Dear Minister

Inaccordancewithsection68B(4)oftheGamingControlAct,IpresenttoyoutheCommunityBenefit FundAnnualReportfor2012-13.TheAnnualReportdetailstheoperationsoftheCommunityBenefit Committee during the financial year, including full listings of grant recipients and purposes.

Yourssincerely

Doug Phillips
Chair
Community Benefit Fund Committee

25 September 2013

Contents

Community Benefit Fund Committee Annual Report 2011-12

Highlights

Table 1: Community Benefit Fund Summary of Actual Cash Flow 2011-12

Community Benefit Fund

Administrative Responsibility

Committee Membership and Meetings

Changes to Regional Names and/or Boundaries

Industry Contribution to Community Benefit Fund

Community Benefit Fund Levy - Licensed Hotels

Community Support Contributions – Licensed Clubs

Operation of the Fund

Gambling Amelioration Grants

Gambling Research

Major Community Grants

Community Organisation Grants (small grants)

Table 2: Community Organisations Grants (small grants) by region

Vehicle Gift and Long Term Loans

Table 3: Vehicle Gift / Long Term Loan Approvals

Table 4: Community Organisation Grants Approved in 2011-12

Table 5: Community Support Contributions from Licensed Clubs

Community Benefit Fund CommitteeAnnual Report 2102-123

Highlights

  • The Community Benefit Fund received $1.94 million from the levy on electronic gaming machines in hotels during 2012-13.
  • Atotal of $832,302 was spent on gambling amelioration grants.
  • Atotal of $271,000 was spent on major community grants.
  • Atotal of $419,828 was spent on community organisations grants.
  • Thirteen vehicle gifts and one long term loan were approved during 2012-13.

Table 1: Community Benefit Fund Summary of Actual Cash Flow 2012-13

Revenue and Payments / Sub Total
$ / Total
$
Opening Balance at 1 July 2012 / 143,000.00
Revenue - Community Benefit Levy / 1,940,366.54
Revenue – Returned Grants / 201,299.36
Total Revenue / 2,284,665.90
Payments:
Gambling Amelioration Grants / 832,302.52
Gambling Research Grants / 7,736.00
Community Organisation Grants / 419,828.18
Major Community Grants / 271,000.00
Total Grants allocated / 1,530,866.70
Administration / 206,589.67
Total Expenditure / 1,737,456.37
Closing balance at 30 June 2013 / 547,209.53

Community Benefit Fund

The Community Benefit Fund was established to provide funding support for gambling-related research and amelioration programs concerned with problem gambling, as well as community benefit grants which provide assistance for general community development and improvement purposes.

Section 68A of the Gaming Control Act, provides that:

  1. the Director (of Licensing) must maintain in the Agency’s Operating Account a fund to be known as theCommunity Benefit Fund; and
  2. Moneys in the Community Benefit Fund are to be applied for the following purposes:
  1. research into gambling activity, including the social and economic impact of gambling on individuals, families and the community;
  2. promotion of community awareness and education in respect of problem gambling and provision of counselling, rehabilitation and support services for problem gamblers and their families in the Territory;
  3. funding of community projects and services of benefit to communities throughout the Territory; and
  4. management and administrative support of the Fund.

The Fund receives a 10 percent levy on player loss from electronic gaming machines in licensed hotels, unclaimed prizes paid to the Director of Licensing and proceeds from items forfeited under the Gaming Control Act. Eachyear the Minister for Business determines how this money will be distributed by the fund in terms of gambling amelioration, small and major community organisation grants and administration.

Two rounds of small community organisation grants and vehicle gifting / long term loans are conducted every year, as well as one round of gambling amelioration and major community organisation grants. Each round is advertised in local papers throughout the Territory. This year a third round of small community organisations grants was heldin June.

The responsibility for assessing applications requesting funding from the above grant categories falls on the Community Benefit Committee (‘the Committee’) which has been established by the Minister for Business to advise and assist the Minister in the operation of the Fund.

The Committee also advises the Minister about the obligations of licensed clubs throughout the Territory to provide direct community benefit contributions to their local communities, as required under the Gaming Machine Act.

Under the Gaming Control Act, the Director of Licensing may approve funding for gambling-related research.

Administrative Responsibility

Under the Gaming ControlAct(theAct), the Director of Licensing (the Director) has responsibility to maintain the Community Benefit Fund (CBF). The Director’s duties in relation to the CBF can be broadly summarised as follows:

  • maintain the CBF in the agency operating account;
  • determine the revenue of the CBF through assessing gaming machine levy;
  • monitor and report on club community contributions; and
  • approve funds for gambling related research.

Gambling and Licensing Services in the Department of Business is responsible for the coordination, management and administration of the program. This includes secretariat and executive support to the Committee as well as promoting the program within the wider community. The secretariat is also responsible for the management of amelioration support and research activities, overall fund administration and general reporting of the program activities and progress to Government and other stakeholders.

Licensing inspectors in the Department of Business are responsible for ensuring returns are provided by each club and checking that contributions claimed on the returns are eligible

Committee Membership and Meetings

The Community Benefit Committee is comprised of at least three community representatives and government chair.

Community members of the Committee are appointed in an honorary capacity by the Minister. Nominal fees for attending Committee activities may be paid at the discretion of the Minister. Community members are also entitled to reimbursement for out of pocket expenses in meeting obligations arising from participation in Committee activities, consistent with normal government policy.

During 2012-13 the following members served on the CBF Committee for the periods listed below.

  • Austin Chin (Darwin)23 July 2012 – 30 June 2013
  • Sharon Wilson (Darwin)23 July 2012 – 30 June 2013
  • Paul Davis (Alice Springs)23 July 2012 – 30 June 2013
  • John Keogh (Nhulunbuy)23 July 2012 – April 2013

Government Representatives

  • Anne Bradford (Chairperson)1 July 2012 – 6 February 2013
    Department of Justice
  • Doug Phillips (Chair)4 March 2013 – 30 June 2013
    Department of Business

The Committee met on four occasions during 2012-13.

In April 2013 John Keogh passed away. John’s contribution to the committee although brief was both informative and valuable. His knowledge of the Nhulunbuy area and passion for the betterment of the community was clear. The committee would like to formally acknowledge Johns contribution and pass on their condolences to his family.

Industry Contribution to Community Benefit Fund

The gambling industry is a major contributor to the Northern Territory economy, with significant investment, employment and taxation revenue effects. It is also a key element in the broader recreational, hospitality and tourism sectors.

However, the industry carries the potential for significant negative social consequences as a direct result of problem gambling aspects, particularly in regard to the operation of electronic gaming machines. To establish a responsible and balanced position for the industry, government requires that this sector of the gambling industry contributes to measures to address the adverse effects it created and more generally, to improve the broader community environment within which the machines operate.

The required industry contribution is achieved in two ways:

  1. through the imposition of a Community Benefit Fund levy on the electronic gaming machine takings from licensed hotels; and
  2. by direct support to community improvement and development by licensed clubs operating electronic gaming machines.

Community Benefit Fund Levy - Licensed Hotels

The Fund is established under the Gaming Control Act to consolidate and manage the Community Benefit Fund levy collected from the operation of electronic gaming machines in licensed hotels. Funding is directed to specific areas of activity as specified in the legislation.

Community Support Contributions – Licensed Clubs

As part of the arrangements for allowing gaming machines in community venues, clubs are required to make contributions to the local community and report those contributions on a regular basis. Guidelines exist to clarify what can be legitimately reported as a contribution.

Section 68B(2)(b) of the Gaming Control Act requires the Community Benefit Fund Committee ‘to monitor the contribution that clubs that are licensees under the Gaming Machine Act make to the community’.

In 2012-13, community support contributions from licensed clubs totalled $3.167 million, equating to 13% of net gaming machine revenue received. This represents an increase of 2% from the 2011-12 community support contributions, which totalled $2.81 million, equating to 11% of net gaming machine revenue received.

(Table 5 refers)

Operation of the Fund

Performance Targets

The following performance targets were set for 2012-13:

  • 100% accuracy of grant payments processed; and
  • 100% specified grant timeframes met.

Both performance targets were achieved during 2012-13.

GamblingAmelioration Grants

The Gambling Amelioration Grants Program was established to support interventions that reduce problem gambling and minimise the harms that result from gambling. Interventions can range from community awareness and education through to the provision of counselling, rehabilitation or support services for problem gamblers and their families.

In 2012-13, four organisations were funded a total of $818,000 to provide gambling amelioration services. These organisations were:

  • Amity Community Services Incorporated received funding of $510,00 to continue their gambling intervention service and education program, individual assessment and counselling, maintenance of its website and the Gambling Counselling Helpline as well as an Indigenous Gambling Intervention Service Network for a further twelve months; and
  • Somerville Community Services received funding of $200,000 to continue its problem gambling financial counselling service in Darwin and Palmerston for a further twelve months.
  • Big Fat Productions (isee-ilearn) received funding of $90,000 for stage two of the strong living project. This project is aimed at the prevention and reduction of habituation gambling within indigenous communities.
  • Central Australian Aboriginal Strong Women’s Alliance (CAASWA) was provided $18,000 to produce “Your rights and the effects on your family” information brochures in both English and Language.

The Department of Justice, Victoria was also paid $14,303 as the Northern Territory’s contribution to the National Online Problem Gambling Project.

Gambling Research

No new research projects commenced in 2012-13. Results from a project studying the spatial relationship between electronic gaming machines venues, their clientele and gambling related harm in the Northern Territory, that was funded in previous years are anticipated to be finalised in the 2013-14 financial year. Once these results have been received an informed decision will be made on future research funding.

The Department of Justice, Victoria was paid $7,736 as the Northern Territory’s contribution to GamblingResearch Australia.

Major Community Grants

The Major Community Grants Program was established in 2008-09 to provide funding support to not for profit Northern Territory based organisations for community development and improvement purposes. The maximum grant available for each project is $200,000.

In 2012-13, five organisations were funded a total of $271,000 as follows:

  • Aboriginal Resource and Development Incorporated received $150,000 to conduct a banking and literacy community development program in East Arnhem Land;
  • Thamarrurr Development Corporation Ltd received funding of $52,549 for the Wadeye Magic trial participation
  • (#2) in the NTFL 2012-13 ;
  • Asthma Foundation NT received funding of $50,708 to conduct “The Asthma Swim Program”;
  • GAP Community Childcare Centre Incorporated received funding of $12,043 to install a new storage shed facility and a security system; and
  • Tennant Creek Returned and Services League Sub Branch received funding of $5,700 to install a new front fence.

Community Organisation Grants(small grants)

Community Organisation grants are available to support projects which have the potential to improve the wellbeing and lifestyle of Territorians. Funding for a wide range of purposes may be provided to eligible not for profit Territory based community organisations.

Funding is generally limited to amounts of $5,000 or less, although higher amounts may be approved under specified conditions outlined in the grant guidelines. Funding is provided for non-recurrent expenditure and is available only for clearly identified projects which can be completed within specified time frames.

Greater consideration is given to priority issues such as level of existing community support and circumstances such as remoteness or high levels of socio-economic disadvantage. Preference is also given to requests for lower value amounts. This combined approach allows for an equitable distribution of available funds throughout the Northern Territory to as many worthwhile projects as possible.

Table 2 provides a regional summary of applications received and approved.

Table 2: Community Organisations Grants (small grants) approved in 2011-12 and 2012-13
Summary by Region

Region / Applications
Received / Amount
Requested
$ / Amount
Approved
$ / Number
Approved
2011-12 / 2012-13 / 2011-12 / 2012-13 / 2011-12 / 2012-13 / 2011-12 / 2012-13
Arnhem / 15 / 19 / 64,412 / 77,620 / 37,881 / 55,604 / 10 / 18
Barkly / 7 / 19 / 29,234 / 77,838 / 12,597 / 59,538 / 4 / 16
Central / 28 / 42 / 103,872 / 166,050 / 62,450 / 120,921 / 23 / 37
Katherine / 20 / 26 / 70,678 / 97,824 / 33,701 / 80,751 / 14 / 25
Multi-Region / 26 / 22 / 103,114 / 109,185 / 45,672 / 68,157 / 17 / 21
Northern / 106 / 140 / 415,889 / 547,522 / 238,346 / 320,219 / 83 / 111
Total / 202 / 268 / 787,199 / 1,076,038 / 430,647 / 705,189 / 151 / 228

All amounts are GSTexclusive (where applicable).

VehicleGiftand Long TermLoans

Whilst the CBF Committee considers applications for vehicle gifts and long term loans and makes recommendations to the Minister, the actual vehicles are not funded by the levy on electronic gaming machines, but instead, by a levy charged by Northern Territory Fleet on all government vehicles. Applications for vehicle gifting or long term loans are called for on a biannual basis with similar criteria to that of Community Organisation grants. During 2012-13 a total of 60 vehicle gift and long term loan applications were received. The Community Benefit Fund Committee recommended 12 vehicle gifts and two long term loans be approved.

These recommendations were approved by the Minister for Racing, Gaming and Licensing under the Financial Management Act. Table 3 lists the vehicles approved in 2012-13.

Table 3: Vehicle Gift / Long Term Loan Approvals

Organisation / Region / Vehicle Gift
Brahminy Foundation Ltd / Multi / Troop Carrier
Bushfire NT Volunteer Training Brigade Inc / Multi / 4WD Utility
Council on the Ageing NT Inc (COTA) / Northern / Commuter Bus
Down Syndrome Association of the Northern Territory Inc / Northern / 4WD Utility
Katherine Landcare Group / Katherine / 2WD Utility
Lutheran Community Care / Central / Mini Bus
NT Friendship & Support / Multi / Commuter bus
RDA Alice Springs Inc / Central / Utility
Royal Life Saving Society (Australia) NT Branch Inc / Multi / 4WD Utility
Somerville Community Services Inc / Northern / Large Sedan / Van
Teachabout Inc / Katherine / Troop Carrier (Loan)
Teachabout Inc / Katherine / Troop Carrier (Loan)
Teen Challenge Centralia Inc / Central / KIA Carnival
The Grow Zone Incorporated / Arnhem / Mini Bus

Table 4 provides details of all Community Organisation grants approved.

Table 4: Community Organisation Grants Approved in 2012-13

Organisation / Grant Purpose / Amount $
Arnhem
Alyangula Scouts / Purchase of outdoor and camping equipment / $4,176.00
Autism Northern Territory Inc / Purchase promotional materials to raise awareness of Autism / $1,000.00
Captain Cook Community Centre Inc / Upgrade the centre's car park and trafficmanagement / $2,500.00
Captain Cook Community Centre Inc / Purchase and install 4 x 1000 watt security floodlights / $4,545.00
Gove Peninsula Tennis Club Inc / Purchase a water bubbler and air conditioner including installation / $4,382.50
Gove Touch Association / Equipment to set up a clubhouse / $2,360.00
Gove Yacht Club / Build and relocate floating jetty / $3,000.00
Groote Eylandt & Milyakburra YouthDevelopment Unit Inc (GEMYDU) / Purchase 6 computers, programs, printer and modem router / $3,000.00
Groote Eylandt Animal Care / Purchase of a printer and medical kit / $1,500.00
Gundjeihmi Aboriginal Corporation / Purchase hardware and software to produceID Cards / $5,000.00
Jabiru Childcare Centre / Purchase equipment and resources / $5,000.00
Marngarr Resource Centre AboriginalCorporation / Development of an informed Women's Network / $3,300.00
Nhulunbuy Children's Services / Addition of garden, revitalise rock pool and baby change table / $2,000.00
Nhulunbuy Playgroup Association / Upgrade to fencing and car park / $2,500.00
Nhulunbuy Regional Sports Fishing Club Inc / Purchase and installation of a high quality, long throw projector and screen / $2,500.00
Nhulunbuy Regional Sports Fishing Club Inc / 6 x water safety signs at boat ramp / $2,500.00
NT Breast Cancer Voice Incorporated / Cover the cost of transporting the mobileMammography equipment to Jabiru / $3,000.00
Tiwi Islands Shire Council / Inflatable projector screen and nylon rope / $3,340.00
Total Arnhem / $55,603.50
Barkly
Anyinginyi Health Aboriginal Corp / Eye health program (TV, Printer, Camera) / $905.46
Australian Red Cross Society – TennantCreek / Offer a 6-8 events across 6 months of community cook-up events with entertainment / $3,400.00
Barkly Australian Football Club / Purchase of a storage container for sporting equipment / $4,185.00
Barkly Regional Arts Inc / Purchase of Hilux canopy, tools and travel cases / $2,500.00
Barkly Regional Arts Inc / Purchase a portable movie system / $4,998.18
Barkly Shire Council / Purchase of washing machine and swimwear / $2,999.00
Barkly Shire Council / Sponsor 6 players to try out for NT Thunder / $5,000.00
Country Women's Association of theNorthern Territory Inc / Purchase of white board and portable banners / $1,247.00
Engineers Australia Northern Division / Launch an Engineering Heritage Brochure in theTennant Creek region / $3,344.00
Longreach Cricket Club / Funding to participate in two annual cricket carnivals / $5,000.00
National Disability Services NorthernTerritory / Funding for airfares and accommodation for attendees of the DS NT Conference / $5,000.00
Northern Territory Chamber of Commerce and Industry Inc / Develop a promotional DVD for Business and Community to attract employees and families to live and work in Tennant Creek / $5,000.00
Nyinkka Nyunyu Art & Cultural Centre / Covering the costs associated with NyikkaNyunyu Art and Cultural Centre's 10th anniversary celebrations. / $4,545.00