Greens call for independent community contributions fund to break profit driven clubs' grip on local sport

Today, Greens Spokesperson for Gambling Harm Rebecca Vassarotti has announced she will call for the establishment of an independent fund for community contributions to future-proof local sport, also urging the government to investigate a compounding investment model. 

The proposal, which will be debated in the ACT Legislative Assembly this October, could neutralise the long-standing argument from the local community club sector that cutting poker machines will harm local sports. 

“For years, local sports have been dependent on revenue pulled straight from gambling harm. But with this proposal, we finally have a chance to break free and build a real, independent future for community sport,” Ms Vassarotti said.

“Right now, the big clubs  decide where community contributions go with zero strings attached. The cash gets scattered in tiny amounts, diluting its impact and keeping community sport dependent on private businesses.

“Last year, Canberra clubs logged nearly $7 million in reported community contributions. But accounting loopholes mean a massive chunk of that is just ‘in-kind’ only, reducing how much real cash gets invested in our community.

“As it stands, these highly profitable clubs can claim a $300 'donation' just for letting a community group sit in an otherwise empty room for an hour.

“Meeting spaces matter, but claiming that as major financial support is taking the mickey. That isn’t backing our community, it’s just creative accounting. 

“If we took the actual cash contributions required from clubs, no creative accounting allowed, and put them into an independent central fund, we could better support sports funding as well as better supporting our community.

"This system, where the government takes a back-seat and lets clubs ride rough-shot over our community, is fundamentally broken. To ensure every dollar actually serves the public, we need to create this independent fund.”

The Greens' motion will transform community contributions funding across the ACT through two key actions:

• Establishing an independent Community Contributions Fund which will be managed by an independent body like Hands Across Canberra to ensure money is distributed fairly, quickly and with greater impact.
• Mandating that clubs pay their entire 8% community contribution in cash rather than in-kind venue hire, closing a major loophole and guaranteeing direct, tangible funding for local services and sports.

Alongside these direct calls, the motion will urge the ACT Government to investigate establishing a compounding investment framework to supercharge these funds over time, and future-proof local sport funding.

“Local sports shouldn't have to beg profit-driven clubs for hand-outs, nor should they have to compete in the budget every year,” Ms Vassarotti said.

“By setting up a dedicated fund, with an initial base investment, we could lock in the baseline $6.83 million our sports rely on today, working towards truly independent and self-sustaining sports funding.

"That’s millions in brand new, bonus money straight into grass-roots sports, entirely separate from the agenda of profit-driven clubs.

“And better yet, this would set the groundwork for clubs to completely eliminate their reliance on pokies without taking a cent from community sport.”

Rebecca Vassarotti will be moving this proposal in the October sitting of the ACT Legislative Assembly, bringing it to debate on the floor of the parliament.

STATEMENT ENDS

4-Year Forward Compound Projection
To cover $6.83 million in annual club support, combining $5.25 million in cash and $1.58 million in non-cash contributions, you need a single $154.07 million fund earning a 4.43% annual return to generate that funding every year. In addition, there would be annual injection in the first forward-estimates as a result of community clubs continuing to pay community contributions.