Karting Australia Court Case Statement

Karting Australia has expressed its concern about the impact last week’s NSW Supreme Court judgment could have on the operation of the AKA Track Development Fund.

Yesterday, the organisation published a statement on its website yesterday, reiteating its view that KNSW’s claims were “completely at odds with the principles and purpose of the Fund and the Trust”.

The full statement is below.


JOINT STATEMENT FROM TRACK DEVELOPMENT FUND TRUSTEE AND AKA MEMBER STATES

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



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– 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:

  1. The Trust is the core, circuit funding instrument for our sport and as such it is very important to our members. KA’s Member States and Clubs have been very well served by the Trust and the Fund since its inception as it has been singularly responsible for loaning millions of dollars, interest free to Member States and Clubs for the purpose of track development over the past 26 years; 
  2. They strongly support the ongoing operation of the TDF in one form or another but always with a national focus and in accordance with the original concept and principles from 1994 and 2005, because of the benefits that it can provide for all Member States and Clubs;
  3. The work of the Trustee in managing and operating the TDF in accordance with the Trust Deed for the benefit of all member clubs was strongly supported;
  4. The Trustee with the support of the Member States should take appropriate and necessary action to maintain the integrity and ongoing viability of the Trust to ensure it continues to operate in its current, or an amended, form in accordance with the principles and objectives that the Trust and the Fund was originally set up to achieve for the ongoing benefit of Member States and Clubs. 



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