24 OCT 2011 - Chairman's Statement
24 October 2011 - Chairman's Statement
It has been sometime since my last Chairman's Statement. We have been very busy over the past few months and although many of our efforts may not be immediately obvious I believe the work of the staff and the new Board will result in a better 2012 and a still better 2013. There is still a lot of work to do. I thank you for your continued support and trust you will continue to work with us to ensure your venue remains the "place to race". I want to bring you up to date on some issues.
The Board has considered a number of inquiries regarding GST on prizemoney and the payment of prizemoney arising from previous events as well as the remaining events for the 2011-12 racing calendar.
On the matter of GST on prizemoney, it appears that since the introduction of GST in 2001 that prizemoney has possibly been incorrectly handled. The current advice from Australian Tax Office documents is that prizemoney is a set amount inclusive of GST and that payment of any GST is dependent on the individual’s circumstances. ATO documents indicate that if prizemoney received is subject to GST, then the payment of GST comes out of the prizemoney allocated. It is the responsibility of the recipient to pay such GST if applicable. The Board is seeking a private ruling from the ATO and will further update racers when this becomes available. In the meantime advertised prizemoney will be paid and no additional monies will be paid to account for GST.
The Board reaffirms its position to remain committed to the payment of prizemoney for the 2011 Nitrochamps based on the finalisation of the accounts for the FUCHS Nationals. This is yet to occur. It is part of the ongoing process to finalise the 2010-2011 Financial Report. At the same time the Board is focusing on improving the venue's financial position and will not make decisions which will jeopardise the future of your venue. The Board is committed to pay all ongoing expenses, including prizemoney, within a reasonable period, but the determination of the payment of any account will be based on cash flow.
At this time the Board is also focusing on venue improvements so as to ensure ongoing financial stability. This involves significant negotiation not only with our landlord but also with our neighbours and potential third party venue hirers. Under these circumstances the Board is very cognisant of the need to demonstrate financial viability and detailed planning. I am sure you understand the necessity of such work and appreciate how this will lead to the full utilisation of the venue so as to ensure drag racing will continue to flourish at the best facility in the country!
In terms of the prizemoney due to the 2010-2011 Track Champions we wanted to pay this as cash flow allowed. Some payments were made earlier last week and all other outstanding payments to the 2010-2011 Track Champions have now been processed. The Board appreciates your patience and thanks you for your support.
On the matter of payment of accounts including prizemoney please note the board has allocated this responsibility to the current Financial Controller Rob Fielding (firstname.lastname@example.org). Therefore any questions and comments should be directed to either Rob or the track's General Manager, Tony Beuk (email@example.com). It is not a matter for any of the other staff.
Sydney Dragway will continue its racing program as outlined for the 2011-12 calendar. This includes the payment of advertised prizemoney. As ANDRA is undertaking a review of the future development of the sport, it is believed that the analysis of this will occur quickly to enable the Board to plan for the 2012-13 calendar and beyond. Further details will be forthcoming once this process has concluded.
A number of people have enquired about the AGM. We are required to conduct our 2011 AGM prior to the end of November and accordingly it has determined the 2011 AGM will be held on Tuesday November 29th 2011. Members will be advised by Notice of Meeting shortly.
As always I welcome your feedback.