Tuesday’s NSW State Budget is a test for the NSW Liberal National Government to give the NSW Greyhound racing industry a FAIR GO on funding as the industry improves its governance and standards.
The distribution of Point of Consumption tax revenue to the three racing codes arising from a Point of Consumption Tax (PoCT) is due to be announced, perhaps tomorrow in the NSW State Budget.
The Australian reported on Wednesday June 13 that a 10% PoCT would be levied on the wagering turnover of corporate bookmakers, anticipated to apply from January 2019.
The article quoted the NSW State Treasurer and Minister for Industrial Relations, the Hon Dominic Perrottet MP as follows:
“Following an extensive consultation period with stakeholders, this decision will resolve the disconnect between the jurisdiction where gambling activity occurs and where it is taxed. We also want to make sure that the racing industry is no worse off under these changes, which is why we have taken steps to ensure that they receive fair compensation and that existing parity arrangements are unchanged.”
The NSW GBOTA has consistently and repeatedly put to the Government that the redistribution to the three racing codes must reflect market performance. NSW GBOTA Chief Executive Officer, Brenton Scott, said that no other methodology could possibly be used if fair parity is to apply.
“Any PoCT revenue generated for the Government by the three racing codes will be generated on the market performance of the codes. It follows that the portion being redistributed to the racing industry must also be split on market performance and that means 22% to the greyhound code,” said Scott.
Scott added that the percentages applied to any racing code PoCT distribution provided an opportunity for the Government to make good on its commitment made at the time of repealing the Greyhound Racing Prohibition Act in 2017 to treat the greyhound racing industry fairly including revenues needed to improve the industry.
“The Berejiklian Barilaro Liberal National Government in NSW has regularly agreed (as have parliamentary and other inquiries and reports) that the Greyhounds’ share of wagering revenue is grossly unfair. For example, greyhound racing receives only 13% of TAB revenues under the TAB Intercode Agreement when our wagering market share is currently 22%,” explained Scott.
The Treasurer’s statement in The Australian last Wednesday appears to refer to this unfair split as the basis for a Point of Consumption tax.
“The Government has been unwilling to intervene with regard to any correction to unfair commercial Intercode funding arrangements. The decision around funding splits from a Point of Consumption tax, however is entirely its own.
“The NSW Government’s credibility and support for the greyhound racing industry is being put to the test regarding the share splits distributed to the three codes from PoCT revenues.
“Anything less than market share will be unfair and will be seen by greyhound participants across New South Wales as an act of bad faith.”