Wagering Tax Parity Legislation Introduced Into NSW Parliament
By Tom Walter – Racenet.com.au
Racing NSW is on the way to securing wagering tax parity with the Victorian racing industry after the NSW Government introduced a wagering tax parity legislation on Wednesday.
For the past year Racing NSW has put its case forward for tax parity in respect to TAB wagering revenue. Currently the NSW racing tax is $3.22 per $100 bet while the Victorian tax rate is $1.28.
Racing NSW says the inequity between states has resulted in the Victorian racing industry receiving $100 million more per annum than the NSW industry to fund prizemoney, racecourse improvements and other payments to participants.
Initially, the Government agreed to phase in tax reduction over a five year period as part of the annual NSW budgetary process however Racing NSW expressed concerns that under the proposed structure the funding would “become a year-by-year proposition subject to the economic circumstances and political vagaries which may exist from time to time.”
In addition, Racing NSW received no guarantee that the funding would continue after the five year period.
After liaising with the Deputy Premier and Minister For Racing Troy Grant, Racing NSW advised that the tax reductions and associated rebates to the industry would be brought forward and implemented by way of legislation, thus securing the future of the NSW industry’s revenue streams.
“During this entire process the Deputy Premier has been a vigorous advocate for NSW to achieve parity with Victoria,” a Racing NSW statement said.
“Racing NSW wishes to place on record its immense appreciation to the Premier the Hon. Mike Baird MP and the Deputy Premier and Minister for Racing the Hon Troy Grant MP for making parity a reality and ensuring a prosperous future for the NSW Thoroughbred Racing Industry and its 50,000 participants.”
Under the new legislation, tax parity with Victoria is expected to be met by the conclusion of the five year period, enabling Racing NSW to implement its Strategic Plan over that time frame.