Category Archives: Permitz Group

A single solution for companies running multiple competitions

Running multiple chance-based promotions over the coming year and want to speed up the permit process, whilst saving costs? The answer may be a blanket competition permit.

Benefits

A blanket permit allows you to set up a competition with no notice whatsoever, and works out to be a cheaper alternative to obtaining a number of individual permits.

Once you have a blanket competition permit you are able to use that permit number in each competition you run (provided that the competition complies with the requirements of that permit).

Rules of a blanket

A blanket competition permit runs for 12 months. The general rules of a blanket are:

  • The value of each prize must be $1,000 or less;
  • You must give away less than $100,000 over the life of the blanket;
  • You must give away less than $5,000 in each draw; and
  • You must keep records of each prize given away, the winners details and the promotion details.

States

To run competitions under a blanket you will need a permit from New South Wales and the Australian Capital Territory.

In NSW you can obtain either a Class B or a Class C blanket (different rules apply to each).

Conculsion

If you are running a number of smaller competitions, want flexibility in the competitions you run and see value in a blanket permit give us a call and we can obtain a blanket permit on your behalf.

More about us

Permitz was initially set up specifically to assist companies wanting to run competitions and to obtain competition permits.  This focus on such a niche area has allowed us to develop expertise exceeding many of our competitors, who struggle to stay up to date with regulatory changes and policy updates.

We have set about seeking to differentiate ourselves on the following basis:

1. We aim to share knowledge and help our clients achieve their objectives. 

We don’t charge to assist in the design and development of a competition or to research when a permit or licence is required. This may typically involve a discussion about when competition permits are required and about potential entry mechanics and suitable prizes.

As you can see from our postings online, we are happy to share what we know, and for no cost. See our articles on competition permit basics for more info on when a competition permit is required and the best practices when designing a competition.

Some of the more common questions we are asked are to do with timing (click on the link for further info), cost of competition permits, and when competition permits are required.

2. We have a fun and flexible workplace which is focused on enjoying work.

We have done away with unnecessary meetings, reports which nobody reads, policies which are not flexible and actively understood or creating paperwork for the sake of creating paperwork. Indeed, with staff having government, commercial and small business experience, we relish in not doing ‘business’ the way that some of our former employers did.

We are simply focused on doing work when we need to do it and on doing it professionally. This translates into flexible working hours, and locations, ensuring that employees are engaged and actively learning. We discuss work in environments we enjoy, not around a board table. This translates effectively into a company whose employees are responsive and focused on our client’s needs.

3. We care about our environment and our community. 

A company does not operate in isolation of its environment or the community from which it both draws its energy and finds its existence.

From using solar energy, to providing discounted or free work  for non-profit organisations, our small contribution or reduced negative impact is an important part of our culture and how we see ourselves.

If you visit our office you will notice the natural light, the plants and the distinctive lack of paper. Whilst the dream of a ‘paperless office’ has not come about for many companies, for us paper files are a thing of the past. We have also committed to giving back, this year it will be 5% of profit to charities of our choice.

4. Enjoyment in work is from the work we do and in interacting with our clients. 

We are privileged to work with some very interesting individuals and brands. From hotels, airlines, electronic giants, to authors of children’s books. we have had a great run. Whilst we look after the more tedious aspects, i.e. competition permits, we are luck to work with interesting and experienced people who know their craft whether marketing or legal so well.

Competition permit costs set to rise 1 July 2014

Each year competition permit costs increase as each trade promotion lottery department/ authority increases the fees payable to obtain a competition permit. The cost of a competition permit will depend on the total prize pool being given away.

If you are planning to run competition which requires a competition or trade promotion permit in the first or second quarters of 2014/2015, now is the time to apply for competition permits. By submitting applications before the end of the financial year, organisations can avoid the increased competition permit application fees.

Competition permits

Competition permits are generally required for chance-based competitions. Permits would be required from NSW and the ACT if your prize pool is at or under $5,000 and from SA and VIC if your prize pool is over $5,000 or is an instant win competition.

There are a range of permit conditions which must be adhered to as set out in the permits themselves. These include the requirements to hold all entries and records of winners for a three years. This also, obviously, includes the requirement to conduct the competition in accordance with the terms and conditions and to ensure all entries have an equal chance of winning.

Any changes to the terms and conditions or structure of the competition once permits have been approved must be approved by way of a formal amendment approval from the lottery departments.

Permitz Group are able to assist with both skill and chance based competitions. We can draft terms and conditions, apply for permits on your behalf and send you the final terms with minimums for use in advertising. We can also then conduct a draw if you would like us to do so and arrange for the notification of the winners/ publication in a newspaper.

Competition permits in NSW

A competition permit is required from NSW for any chance-based competition, i.e. no matter the total value of all prizes in the competition. Thankfully, it is reasonably easy to obtain a competition permit in NSW.

NSW have many of the same requirements that are present in other states in relation to chance-based competitions. These include the requirement to hold an unclaimed prize draw if the initial winners cannot be contacted after 3 months and the requirement to hold trade promotion permits which need to be displayed on all advertising.

NSW are much quicker than any other state in issuing trade promotion permits and the fees are, generally, cheaper. The cost of a permit for a competition with a prize pool of under $10,000 is $80.32. The department are helpful with the process.

To obtain competition permits from NSW it is important to ensure that your competition complies with the various requirements. Permitz can assist in reviewing or drafting terms to ensure compliance and quick issue of a competition permit.

When do I need a competition permit?

We are often asked when a competition permit is actually required?

General considerations

Competition permits are typically required for chance-based competitions. Usually this is easy to determine. For example a competition which involves a draw when determining the winners will require a competition permit. A competition permit is not required for a game of skill where the winners are determined by a qualified judge. For example a competition that asks entrants to provide an answer in 25 words or less would not require a competition permit if the winners of that competition were judged on the basis of their answer.

Other types of competition are not so easy to classify. Some competitions involve both skill and chance in determining the winners. An example of a mixed game of skill and chance might be where entrants need to submit answers in 25-words-or-less which are judged by a qualified judge but then given a chance to win a major prize by just participating in the promotion. To determine the major prize winner a draw might take place. In such a situation the whole competition would need to be reviewed by the state gaming authorities. In such a situation it may be possible to split the promotion if the Promoter were looking to reduce the cost of permits.

Specific consideration

Another aspect to consider is whether the competition will be open and advertised nationally. Of the different states in Australia: New South Wales, Victoria, the Australian Capital Territory and South Australia are the only states that require you to apply for a competition permit. A competition permit will be granted in WA under the regulations by default provided that your competition complies with the permit conditions and that you submit a copy of your terms to the Department of Racing, Gaming and Liquor. You will need a competition permit from the Northern Territory if you don’t have a competition permit in another state or territory.

There are some exemptions that you may be able to take advantage of. For example in the Australian Capital Territory you will not need a competition permit if your promotion is centered on the grant of a refund of a purchase price (and provided you comply with the other aspects of the exemption).

You will also need to review whether you are exempt from the need for a competition permit based on the total you are giving away. You won’t need a competition permit from South Australia and Victoria if your total prize pool is under $5,000 (and your competition mechanic- for SA- is not instant win).

How do I obtain a competition permit

Once you have determined if you need a competition permit the next step is to apply. Each state has a different competition permit application process. It is important to ensure that your competition complies with the various requirements in each state. If your competition does not comply you are not likely to obtain a competition permit. Permitz can apply for competition permits on your behalf.

Once you have the competition permits you require you will need to ensure you include them in all advertising, along with the other mandatory information.

Please let us know if you have any questions on the above or would like us to review whether or not your competition needs a competition permit.

Online competition permit services Australia

When you are working out how to competition permits you may have found us, and others, on Google. Here are some important questions to ask-

If you have asked a provider to conduct a competition draw:

  1. Do you arrange for a Justice of the Peace (or other qualified person) to oversee the draw? If not, be sure to factor this in.
  2. Can you provide me with a copy of your SA authorisation and a copy of your draw procedure and appraisal report?
  3. Can you confirm that you don’t charge any more to conduct an unclaimed prize draw?

The answer to each of the above from Permitz is Yes. 

If you are have asked a provider to obtain competition permits on your behalf:

  1. Do you also provide condensed terms and conditions for use in advertising?
  2. Are you also able to check advertising material for me to ensure that it contains the right information?
  3. Do you pay for amendment fees if an amendment is required as a result of something you have missed?

The answer to each of the above from Permitz is Yes. 

If you have asked for competition management:

  1. Do you send me reminders when the competition has closed?
  2. Will you assist me if a competition entrant has a question?
  3. Will you assist me in publishing winners?
  4. Will you assist me with a template email to winners?
  5. Do you have professional indemnity and cyber liability insurance?
  6. If you do a competition website for me will the website be optimised for mobiles and tablets?

The answer to each of the above from Permitz is Yes.