By
Phil
21 Dec 2022
The NSW Government will reform casino tax arrangements to fund essential services and increase revenue by $364m in the next three-years.
Proposed increases will take effect on July 1, 2023. They include taxes on the profits of casinos from poker and gaming tables.
Matt Kean, Treasurer of the State, stated that the new changes would support fiscal sustainability and allow the state to continue investing in the recovery efforts for communities affected by the extraordinary impacts of COVID-19 bushfires or floods.
It is important for casinos to pay their fair share. The existing tax rate under which casino pay less tax than hotels or clubs on their poker machines will be replaced by these new tax rates, Mr Kean stated. These changes will allow casinos to continue making a meaningful contribution to their community, and to support vital government services.
According to Mr Kean, casinos offer entertainment and employment for thousands across NSW. These changes will help support the continued contribution of the casino industry to the NSW economy.
After recent changes to the casino taxation system announced in the Victorian Budget 2022-23, NSW will now have a poker machine rate that is comparable with Victoria.
Through the Responsible Gambling fund, the NSW Government will spend $33m to help people who have suffered from gambling-related harms, educate the public about the dangers of gambling, and invest in research that can better understand the behaviour of gamblers. In line with inflation, the 2022-23 NSW Budget allocated $5m more per year for Responsible Gambling Fund.
The NSW Consultation has not been acknowledged by the casinos.
The Star and Government discussed this issue. At this point, there are no additional details about the possible reforms (including how taxes would be imposed or applied).
If these changes are implemented, the potential impacts of them will be dependent on their details.
The Star’s proposed reforms, and their implications for pre-existing arrangements
Operation in Sydney
Robbie Cooke, the Star’s Chief Executive Officer and Managing Director stated that they were unsure how the Government calculated its finances or why The Star is not paying its fair share.
In particular, The Star pays millions of corporate taxes in addition to the state gaming tax.
The Star pays taxes as a percentage on its profits at around 70%, with as much as 80 percent in the past five years, when all tax regimes have been considered.”
The Star wants to engage urgently with the NSW Government regarding the sustainability of this project.
The Star is seeking to accelerate cashless by reducing taxes and how they will affect The Star’s business.
Gaming and carded gaming are combined to provide safer gambling while also allowing for a return to remediation.
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