Questions & Answers
This page may answer many of the questions you have regarding ClubMaster eXchange (CMX), ClubMaster Membership costs and benefits, the trading process, trading costs and processes, the nature and role of CMX Trade Dollars (CMD’s), and your CMD Credit Line.
Q & A
Who is ClubMaster?
ClubMaster Pty Ltd is a global Membership company, headquartered in Australia, providing a suite of tools to assist with personal, professional and commercial development, efficiency, and networking throughout the community.
What are the benefits of ClubMaster Membership?
For clubs, associations, and special interest groups, ClubMaster works to help deliver more membership, member engagement, and networking opportunities. For businesses, ClubMaster provides targeted marketing and sales opportunities, direct trading opportunities, and tools for improved community engagement and business efficiency. For individuals, ClubMaster provides a vehicle for sourcing clubs, associations and special interest groups, plus numerous other benefits.
ClubMaster is also delivering a broad range of tools to facilitate and support trading between its Members, including opportunities for revenue generation.
Who is ClubMaster eXchange?
ClubMaster eXchange (CMX) is a division of ClubMaster Systems Pty Ltd, incorporated in Australia. CMX provides a trading platform exclusively for ClubMaster Members, supported by an instrument of exchange called Trade Dollars. CMX Trade Dollars are known as CMD’s.
What is the relationship between CM and CMX?
CMX is the exclusive trade exchange for ClubMaster Members. Whilst CM and CMX do not pay referral fees to each other, they have a symbiotic financial relationship in that CMX only supports financially current CM Members (Emerald Level or higher), and CMX benefits financially from Listings and Transactions conducted on the Exchange and in the deployment of CMD’s.
What is a Trade Exchange?
As defined by the Australian Taxation Office:
“In its simplest form, bartering involves the direct exchange of goods or services for other goods or services without reference to money or money value.
There are sophisticated forms of bartering in the market place, both locally and internationally. These arrangements are typically controlled by member-only organisations, with credit units the medium of exchange.
The terms ‘exchange’, ‘barter exchange’, ‘trade exchange’ and ‘countertrade exchange’ are used to describe the organisation that manages the bartering operation. Various terms are used to refer to the medium of exchange, such as units, credits, trade dollars or barter dollars. The most commonly used term is trade dollar.
Trade exchange operations vary in size and sophistication, from community-based to business-based operations.
A trade exchange provides its members with a trading account for the purpose of recording member transactions. The trade exchange credits or debits the account each time a member makes a sale or purchase respectively. The account is also debited for fees the trade exchange charges its members. The trade exchange may buy and sell in its own right, acting as a member with its own trading account.”
What is a Trade Dollar?
A Trade Dollar is simply a medium of exchange in a tranasction, and is not a recognised currency per se.
CMD’s are exclusive to ClubMaster members, and all CMD holdings and transactions are recorded on the CMX database.
Any transaction or offering involving CMD’s must be approved by CMX.
How much is a CMD worth?
All trade dollars are linked to the national currency, so in Australia one CMD is valued at one Australian dollar, and in Europe one CMD is valued at one Euro.
What can I buy and sell on the ClubMaster eXchange?
Whilst there are a number of exclusions by virtue of legal and licensing requirements, CMX has invested in developing a thoroughly broad-based Listing platform for the benefit of ClubMaster Members, which we propose to continually improve and expand.
At present the platform includes Real Estate, Aircraft, Plant, Vehicles, Vessels, Parts and Equipment, Travel, Accommodation, Tours, Hospitality, Business Investments, Intellectual Property, Financial and Professional Services, Trade Services, Household Items, and many more.
The target for CMX is for its CMD’s to be sufficiently respected and valued for trading on CMX to be predominantly 100% CMD’s, although Sellers may elect a percentage of CMD’s and the balance in cash.
How do I earn CMX Trade Dollars (CMD's)?
As a ClubMaster Emerald Member or higher you may trade on CMX as a Seller, earning your CMD’s by selling assets, stock or services to any other ClubMaster Emerald Member or higher. The transaction may be concluded online, in store, or by direct negotiation between the Buyer and Seller. You may also access CMD’s by successfully applying for a interest free CMD Credit Line.
As noted above, Whilst there are a number of exclusions by virtue of legal and licensing requirements, CMX has invested in developing a thoroughly broad-based Listing platform for the benefit of ClubMaster Members, which we propose to continually improve and expand. At present the platform includes Real Estate, Aircraft, Plant, Vehicles, Vessels, Parts and Equipment, Travel, Accommodation, Tours, Hospitality, Business Investments, Intellectual Property, Financial and Professional Services, Trade Services, Household Items, and many more.
The target for CMX is for its CMD’s to be sufficiently respected and valued for sales and purchases to be predominantly 100% CMD’s, although Sellers may elect a percentage of CMD’s and the balance in cash. The ClubMaster Exchange also allows 100% cash sales.
What is an appropriate % to accept in Trade Dollars (CMD's)?
It would be simple for us to suggest all transactions should be 100% CMD transactions, however that would be unrealistic at least for the time being.
Sellers should keep in mind that they may be responsible for payments to the ATO of GST, Income Tax, and Superannuation Levies. Also, some sales will have selling costs which may not be able to be paid in CMD’s. Lastly, should the Seller have encumbrances on the asset for sale, they should provide for this in cash if they haven’t negotiated repayment of the loan in CMD’s.
As a general guide, most personal, consumer and small business items (most Household, Investments, and Services, plus smaller and used Automotive items) would be 100% or at least 50% CMD; Vehicles and Vessels predominantly 100% or 50% CMD; Larger capital items such as larger Aircraft and Plant would range between 25% and 100% CMD; and Real Estate between 20% and 100% CMD.
Presently we are leaving Members to determine their CMD level, however CMX reserves the right to prescribe acceptable CMD ranges in the future.
How do I spend CMX Trade Dollars (CMD's)?
Any ClubMaster Emerald Member or higher may trade on CMX as a Buyer. Subject to having (a) accumulated CMD’s from the sale of assets, stock, or services, or (b) been approved for a CMD Credit Line from CMX, you may spend your CMD’s by purchasing assets, stock or services from any other ClubMaster Emerald Member or higher. The transaction may be concluded online, in store, or by direct negotiation between the buyer and seller.
What is the ATO's tax treatment of CMD's in Australia?
To quote from the ATO website:
“Barter transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions.
When an entity that is a member of a trade exchange makes a taxable sale to another member, there is a liability for tax, including GST.
Payment may be in money or in kind, or in some instances a combination of these. The payment for sales between members of a trade exchange is the debiting of the recipient’s account and the payment received is the crediting of the supplier’s account.
Value of supplies made through a trade exchange need to be taken into account when determining whether an entity meets the GST registration threshold and is required to register for GST. For example, if an entity has $60,000 of cash transactions and barter transactions valued at $20,000, it meets the GST registrations threshold.
As a general rule, when valuing the payment arising from barter or countertrade transactions, we will accept a fair market value as adequately reflecting the money value or arm’s length value, as applicable. In most cases, we will accept as a fair market value the cash price that the taxpayer would normally have charged a stranger for the services or for the sale of the goods or property.
The rules of most business-oriented countertrade organisations specify a rate for converting credit units into an Australian dollar equivalent. Customarily the rules specify that each credit unit has a value equivalent to one Australian dollar. Where the monetary value worked out using the rate specified in the rules represents a fair market value of the goods or services provided, that rate is to be applied when valuing the payment. In all other cases, a conversion rate that values the goods or services provided at their fair market value is to be applied when valuing the payment.
Transactions where the values are set at artificially high levels for the purpose of establishing an inflated income tax deduction may indicate fraudulent activity. Parties to transactions that involve inflated credit unit values may have consequences other than an adjustment to the amount of income returned or the amount of income tax deductions claimed.
Personal purchases are not deductible for income tax purposes and a GST credit cannot be claimed, whether the purchase is made using trade dollars or Australian currency.”
Can I pay Australian taxes and levies in Trade Dollars?
No. To quote from the ATO website:
“Payments to us of GST, income tax and the super guarantee levy must be made in Australian currency.
Generally, only other members of the trade exchange and the trade exchange itself may accept payment in trade dollars.”
What about Tax Invoicing and ABN's?
To quote from the ATO website:
“A tax invoice is required for a barter transaction as it is for any other business transaction. However, where a member of a trade exchange makes a taxable sale and the payment is expressed in credits, the tax invoice must comply with all of the usual requirements for a tax invoice, and include either:
- the GST inclusive price expressed in Australian currency
- the GST payable in Australian currency.
Australian business number (ABN) obligations apply to bartering transactions to the same extent as for any other business transaction.”
What are the record keeping requirements?
To quote from the ATO website:
“Members of trade exchanges must keep records that record and explain all business transactions and other acts they engage in that are relevant to a particular sale, importation, purchase, dealing or entitlement. The records must be kept for five years after the completion of the relevant transactions or acts.
In addition to ordinary accounting documents, this may include:
- invoices and receipts
- purchase orders, delivery dockets, contracts and barter scheme statements
- other relevant documents, such as the application for membership of the bartering scheme, the rules of the scheme, and any other documents governing the relationships between members, and between members and the trade exchange.”
What is the cost of my ClubMaster Membership?
Most ClubMaster Membership levels incur a Joining Fee and a Monthly Fee. The Membership you choose should relate to the benefits you’re seeking from your association with ClubMaster. CMX is only one element of the value of ClubMaster Membership. You’re welcome to review all Membership Options here.
What is the cost of listing with CMX?
Standard Listing Fees are subject to variation from time to time at the absolute discretion of CMX. Fees at 1st February 2020 are maximum 12 month exposure for $A5 for all Household, Leisure, and Services Listings; $A20 for Automotive Listings; and $50 for Real Estate Listings. Premium Listings are subject to a $20 Premium Listing Fee, again for a maximum 12 month listing. No refunds are provided, in part or whole, if Listings are cancelled or otherwise removed for any reason whatsoever (including but not limited to removal by CMX under the CMX Terms of Business), or the item is sold. To be clear, the Listing Fee is payable whether the Listing is online for one day or one year.
If I complete a trade, what is the related cost in fees and charges by CMX and CM?
CMX charges no fee on the successful conclusion of a transaction, other than fees in relation to the CMD component thereof. Any transaction (as both Buyer and Seller) incurs a Transfer Fee equivalent to 3.50% of the CMD’s transferred. All fee structures are subject to the CMX Terms of Business.
How do I establish a CMD Credit Line, and what does it cost?
You are invited to complete the online CMD Credit Line Application, which will then be assessed by the CMX Team. CMX reserves the right to decline or qualify any CMD Credit Line Application. CMX will be in touch to advise the result of the Application, or to request additional information. No interest is charged on the CMD’s advanced and utilised. An Establishment Fee applies only if the facility is approved, which fee may be amended by CMX at any time in its absolute discretion, and which at 1st February 2020 was $A100. There is a monthly Credit Line Maintenance Fee, based on ranges, against your Approved CMD Credit Line Limit. Please refer the fees section on this website.
How do I repay my CMD Credit Line?
Simply by trading, in the form of the sale of assets, stock, or services to approved ClubMaster Members. CMX may be willing to consider a trade of assets for CMD’s, for which the Transaction Fees may also be waived in exceptional circumstances. Both the fee waiver, and the acceptance of such a trade, remain at the absolute sole discretion of CMX.
Okay, how do I become a ClubMaster Member?
Please visit the ClubMaster Memberships page, select your required level of ClubMaster Membership, complete the online Membership Application, and pay the relevant Joining Fee (which will be reimbursed in full if your Application is declined). If additional information is required, our CMX Team will be in touch.
As a ClubMaster Member, how do I list my first product or service on CMX?
Please login, then visit the Online Registration Form and complete it as required. If you have any issues please reach out, and the CMX Team will attend as soon as practicable.
Can I let you know what I'm looking to buy on CMX, and you notify me of relevant listings?
You certainly can. Simply update your profile here to advise us of your interests, and your preferences of the method and frequency of our communications to you, and we’ll take it from there. Please note that New Listings may be released progressively to Members in the order of seniority, with the highest levels of Membership receiving notification (and the opportunity to purchase) ahead of lower levels of Membership. Refer the CMX Terms of Business.