By Hamish Heard
THE State Government has announced tighter pokies laws after it emerged a federal minister and his senator brother used their Altona pub to exploit a loophole and deprive community projects of cash.
Federal Minister for Agriculture Peter McGauran and his brother, Senator Julian McGauran, last year reportedly declared that $1 million in pokies revenue from their hotel had been distributed for community benefit.
But, according to the hotel’s community benefit statement, all but $5000 of that money was spent on staff wages or improvements to their Millers Inn Hotel.
Items listed in the statement reportedly included a new glass washer, cupboards, tables stools and carpet.
Under Victorian law, pokies venues must donate a portion of their profits to projects that benefit the community.
But a loophole has allowed owners to classify staff wages, hotel improvements and expenses as falling within the community benefits scheme.
A spokesperson for Peter McGauran said the minister was unaware if his hotel had exploited the loophole.
“Peter McGauran’s interest in the hotel is held in trust and he has no involvement in its operations whatsoever,” the spokesperson said
While the pre-election timing of revelations that the Coalition parliamentarians’ pub had exploited the loophole is convenient for Labor, the practice was exposed as widespread in April this year.
A Monash University report found pubs and clubs last year paid out $236 million in staff wages under the community benefit scheme. A further $103 million intended for community projects had been spent paying for renovations and general expenses at the state’s gaming venues.
Less than three per cent of the money pokies owners claimed to have distributed for community benefit had actually reached community projects outside the venues.
The revelations forced the then Gaming Minister, Daniel Andrews, to announce a review of pokies laws.
The present Gaming Minister, Tony Robinson, last week announced the review’s outcome, less than 24 hours after details of the Millers Inn Hotel’s community benefits statement were reported in the national media.
Mr Robinson announced proposed legislation that he said would give club owners a choice between paying higher tax rates or delivering genuine community benefits with their pokies revenue.
“Clubs will no longer be able to make claims for items which are not a genuine benefit to the community, such as improvements to furniture for gaming rooms, subsidised alcohol or personal computers,” Mr Robinson said.
Mr Robinson said the proposed changes would provide an incentive for clubs to make sure the required 8.33 per cent of revenue went directly to community or charitable causes.
He warned that clubs which failed to satisfy the new community benefit obligations could ultimately lose their gaming machines.
“Clubs unable to satisfy the new requirements will first have to pay the higher taxation rate,” Mr Robinson said.
“All licensed clubs need to understand that failure to deliver their community benefit obligations will bring these consequences.”
