RACING Queensland (RQ) will engage with the State Government following its decision to introduce a Point of Consumption (POC) tax on wagering bets placed by Queensland residents through betting operators licensed in Australia.
Queensland now joins South Australia, and Victoria by introducing a betting tax.
The new tax set at 15 percent of net wagering revenue is the same as South Australia but higher than Victoria which set its levy at eight percent. The NSW government has also announced it will impose a 10 percent betting tax from the start of 2019 with full details to be confirmed in the NSW state budget next week.
Western Australia and Tasmania are expected to follow in the coming months.
Queensland’s betting tax, announced in the Queensland budget on Tuesday, June 12, is due to be implemented from October 1. The government has not yet decided where money from the tax will be allocated but will consult with the racing industry and other stake holders about where the money will go.
The Queensland racing industry has been lobbying to have all money raised – expected to be $70.9 million in the first year (2018-2019) rising to $101 million in 2021-2022 – to go back to the three codes.
Racing Queensland CEO Brendan Parnell said the decision to defer the introduction of the tax to 1 October 2018 provides an opportunity for RQ to further engage government on how the taxation revenue will best support Queensland racing.
“It’s encouraging to see the government is listening carefully to the issues raised by all industry stakeholders on how POC tax receipts on racing could be applied to sustain and grow racing.”
“We believe that a tax on racing should be used to fund racing, as a tax on sport should be used to fund sport. RQ looks forward to continuing to work with the Racing Minister and Treasurer on this critical issue,” he said.
Attacking the betting tax, LNP Leader Deb Frecklington said the State Budget revealed Labor would rip $366 million out of Queensland’s wagering and racing industry over the next four years.
“Labor’s budget of taxes, debt and unemployment confirmed that the Palaszczuk Government has failed to listen to Queensland’s racing industry,” Ms Frecklington said.
“The industry told Labor that a 15 percent tax was too high but instead of listening and working with the industry they decided to tax them even more. This is a broken election promise and a total breach of faith.
“Treasurer Jackie Trad has shown how arrogant and out of touch she is with a massive tax grab on the wagering and racing industry. Hundreds of direct jobs are at risk and thousands of indirect jobs. Labor always thinks it can tax its way to growth but Queenslanders are always the losers,” she said.
Aside from the betting tax, Racing Minister Stirling Hinchliffe said there was increased funding of $55.4 million over four years to support country racing in the State Budget.
“We went to the State Election pledging to boost our support for country racing, and this year’s Budget locks in $55.4 million in new funding. This brings our total investment in Queensland country racing to $70 million over four years. This will enable us to maintain existing prize money levels, and provide country race clubs with crucial financial support to meet their race day costs,” Mr Hinchliffe said.
The Minister country racing was an essential part of the social fabric of many regional communities in Queensland – and it also helped to sustain local jobs and local economies.
“Race meets provide stimulus to many local businesses and workers – farriers, caterers, dressmakers, publicans and others.
“State-wide, there are 41,864 participants and volunteers who are employed, or engaged, within Queensland’s racing industry.
“The racing industry contributes $1.2 billion a year to the State economy, with more than 47 per cent of all economic value generated in regional areas.
“It also supports 9548 full-time equivalent jobs, including 4606 jobs outside Brisbane.
“Given the vital social and economic role played by country racing, and the thousands of jobs it supports, we’ll continue to support this vital industry,” he said.