1st September 2021
Members of the Karting Australia federation, comprising Australian Karting Association Ltd (KA) being the Trustee of the KA Track Development Fund Trust (Trust) and Presidents of each of the Member States and Territories have collectively expressed their concerns about the impact the recent NSW Supreme Court judgment may have on the operation of the AKA Track Development Fund (TDF).
Expelled, former state association – Karting New South Wales Inc. claimed that all the money that had been recorded as having been accumulated from entries for race meetings that had been held in NSW since the Trust was formed in 2005 and earlier, since the Track Development Fund (Fund) was originally formed by AKA Inc. in 1994 should be paid to them as a distribution. The judgment handed down following the trial in the NSW Supreme Court found in their favour.
In KA’s view KNSW’s claims were completely at odds with the principles and purpose of the Fund and the Trust. The original concept, intent and principles under which the Fund operated from inception and that are recorded in the Minutes of the 1994 AKA Annual Conference, were transferred to the Trust in 2005 and remain in place today, are set out below:
“The concept of the Trust Fund is that each and every competitor makes a VERY SMALL contribution to the building of karting facilities each time they use a facility.
For the system to work effectively in the shortest possible times, from inception, the following criteria are required
– Large contribution base
– Low cost to the competitor
– Utilisation of available funds
Because of these criteria the system will not be as effective if it is undertaken on a State by State basis.
The system must be considered as a national system where each and every karter contributes equally to the construction of new and upgrading of existing facilities.”
A meeting of the KA Executive Commission comprising the Presidents of all of KA’s Member States was held on Tuesday 31 August 2021 to discuss the impact of the judgment on the future of the Track Development Fund.
The Member States and KA – all the entities that comprise Karting Australia’s federation, were united and resolute in their view that: