Community clubs say services will suffer if the state government increases poker machine taxes.
Proposed legislation will increase statewide pokies tax revenue by an extra $278 million by the end of 2016-17.
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But Hoppers Club general manager Michael Lewis said the hike would force more than $171,000 in cuts to the club’s annual wages budget.
Mr Lewis said the club may have to freeze all community sponsorships and donations and reduce members’ services, including cutting courtesy bus services from two to one.
The cost of a membership would also double from $5 to $10.
“I am saddened that our club, with a proud 40-year history of servicing its community, now finds itself in such an unenviable position that it has to cut jobs and reduce services to members,” he said.
Mr Lewis said the club was involved in talks to sell surplus land in a bid to reduce implications of the tax increase.
Tarneit Labor MP Tim Pallas said the changes would threaten jobs. He said other Wyndham not-for-profit clubs estimated they could lose more than $264,000 and the increased tax costs would threaten important community programs.
“The last thing we need is another tax grab that’s putting more jobs at risk,” he said.
Mr Pallas’s concerns were echoed by lobby group Clubs Australia, which estimates the tax will cost clubs $75 million over four years.
Executive director Anthony Ball said he feared some clubs would have to close.
“When community clubs close, people lose their jobs and the charities, sporting teams and community groups that rely on the club’s support suffer also,” he said.
Late last month, the state government secured the support of independent MP Geoff Shaw, who had previously opposed the changes. Mr Shaw offered his support after the government agreed to postpone the April 1 commencement of the tax and secure an extension for clubs to pay their entitlement fees.
The government has maintained the tax is needed to correct a system where venues were ‘‘under-taxed’’. Treasurer Michael O’Brien did not respond before deadline.
