Bang-Bang ! Hot on the heels of today’s Victorian Races Blackout by Sky Channel and the impact that will have on Victorian wagering revenue, the NSW Government gave the Victorians a secondary body blow with this morning’s announcement that NSW’s long overdue Tax Parity changes are going to be introduced by Mike Baird’s NSW Liberal Government ensuring NSW can establish itself as the Premier Racing State in Australia.
With the NSW racing industry having been competitive despite being at such an onerous disadvantage for so long, there was excellent news announced today by Deputy Premier Troy Grant was warmly received by industry participants.
Tax rates on racing bets in New South Wales will be brought into line with Victoria’s to boost the industry’s competitiveness and make NSW the premier racing state.
The NSW Government has been takings from each bet has always exceeded that of Victoria’s and Queensland’s.
Currently it’s more than double, with NSW taxing $3.22 per $100 wagered compared to just $1.28 in Victoria.
Deputy Premier and Minister for Racing Troy Grant said change was vitally needed to ensure the racing industry continued to thrive in NSW and was competitive with other states.
“The industry is worth $3.3 billion per year to NSW and employs almost 56,000 people - we want to secure its future for the economy and the race-going public," Mr Grant said.
“Such an important industry needs to be able to compete on a level playing field, otherwise we’re (NSW Government) sending jobs and investment interstate."
The new Racing Tax Scheme begins on 1 January 2016.
It will involve a five-year stepdown in the Government’s tax grab on bets until it reaches parity with Victoria in 2019-20.
Year Totalizator tax rate Fixed odds tax rate Start of rate reduction Money back to industry Tax per $100 wagered
2014-15 19.11% 10.90% Current $0 $3.22
2015-16 17.68% 10.90% 1 January 2016 $10m $2.83
2016-17 14.58% 8.33% 1 January 2017 $25m $2.44
2017-18 12.03% 6.87% 1 January 2018 $45m $2.05
2018-19 9.32% 5.32% 1 January 2019 $70m $1.66
2019-20 7.60% 4.38% 1 January 2020 $85m $1.28
Over this 5 year period, an extra $235 million will return to the NSW racing industry (3 codes) industry across the state.
This will be done in consultation with racing bodies to develop and sustain premier racing events, strengthen regional clubs and grow apprenticeships.
“Investments will be made in line with each code’s strategic plan which is developed and agreed to by both government and industry,” Mr Grant said.
The current goal is to make NSW the premier racing state through the extra income generation ensuring that “THE CHAMPIONSHIPS” held in the Autumn will receive the vital boost in funding required to make it the number one racing carnival in Australia ahead of the Victorian Spring Carnival.