Sports Minister Jackie Kelly is right to claim that Australia’s sporting organisations and clubs face an Olympic-sized challenge – but it’s the GST that is the major obstacle confronting them.
“The greatest challenge confronting small clubs and sporting organisations to is how to cope with the GST and its impact on families participating in sport and recreational activities,” said Senator Kate Lundy, Shadow Minister for Sport.
“It’s all very well for the Minister to say that the Olympics should inspire sports clubs to increase participation rates. However, the truth is that these clubs are battling to cope with increased costs and administration because of the GST.
The GST is being applied to sporting registration fees, which may increase costs beyond many peoples’ reach, especially for families with several children involved in sport or recreational activities.
Membership fees are also subject to the GST. For example, the ACCC’s GST Expected Price Variations Guide asserts that gym membership will rise by up to 9%. Tennis court, ground hire and green fees will also be subject to the GST.
Entry fees for sporting competitions are subject to the GST. This has particular implications for larger sporting teams already paying increased costs for travel and accommodation, which are subject to the GST.
Admission charges to sporting events will rise under a GST. The cost of a family going to watch a football, netball, soccer or hockey game will rise.
The cost of sporting wear will rise. The cost of tracksuits, shorts, runners, football boots and ski clothing will increase. The ACCC’s GST Expected Price Variations Guide confirms that sporting footwear will rise by 8-9.4%.
Coaching and sporting lessons are subject to the GST. If you want to send your children to learn-to-swim classes, attend a coaching course or clinic in order to improve your skills, or learn to be a referee or umpire, then you will pay more under the GST. The ACCC’s GST Expected Price Variations Guide confirms that sporting lessons will rise by 7-9%.
“Increasing participation is an important and worthwhile objective, however the GST is the major challenge confronting sporting clubs and organisations today,” Senator Lundy concluded.
Contact: Simon Tatz on 02-6277 3334 or 0418 488 295
