South Australia’s racing industry to get $24 million lifeline in June 18 State Budget

The Government will announce a $24 million stimulus package in a bid to right the racing industry feeling the strain of funding cuts and the introduction of a gambling tax.

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South Australia’s racing industry will receive a $24 million lifeline in the June 18 State Budget as the Government acts to keep the struggling sector afloat.

Racing Minister Corey Wingard will on Saturday announce a stimulus package of $24 million across four years in a bid to right an industry feeling the strain of funding cuts and the introduction of a gambling tax.

The Government’s concession to a vocal racing industry comes after The Advertiser launched a Let’s Back our Racing Industrycampaign to help secure its future.

The rescue package includes an upfront $8 million payment, which will be available to the three peak racing bodies to “support the industry, progress key reforms and infrastructure projects”.

The industry will also receive an annual payment of about $4 million — equivalent to 1.5 per cent of the gambling tax revenue raked in by the State Government — for four years.

Thoroughbred Racing SA chairwoman Frances Nelson said the decision would “restore morale in the racing industry and the state generally”.

Thoroughbred Racing SA chairwoman Frances Nelson … South Australia’s racing industry will receive a $24 million lifeline.

“I’m delighted the Government has worked with us and recognised the industry as a significant contributor to the state and the economy,” she said.

Thoroughbred Racing SA, Greyhound Racing SA and Harness Racing SA were briefed about the funding injection at a meeting with Mr Wingard on Friday night.

But Mr Wingard denied industry pleas to take further action to reduce the 15 per cent Point of Consumption tax, labelled a gambling tax by the former Labor government when it was created as part of the 2016 State Budget.

The industry has continuously called on Treasurer Rob Lucas and Mr Wingard to reduce the tax on bets placed in South Australia to 10 per cent.

“As the Treasurer has said on many occasions because of the $500 million reduction in GST revenue next year, there will be no reduction in existing taxes, including the Point of Consumption Tax, in this year’s Budget,” Mr Wingard said.

Asked if she was disappointed the tax had not been reduced, Ms Nelson said it was “one step at a time”.

Racing Minister Corey Wingard will announce the stimulus package on Saturday.

“We’re in a very tough fiscal situation and I understand that,” she said. “For the Government to make this gesture is something which we should very grateful for, in tough times.”

Mr Wingard said the Government had heard the industry’s concerns and the funding would help to support it while it worked on ensuring the viability of its business model.

The Government has previously put pressure on the industry to “sort out” its governance issues.

He said the ongoing funding was reliant on the industry “implementing important governance changes which would allow it to thrive within a competitive market”.

A decision about money beyond the 2022-23 financial year would be subject to a funding review, which will focus on the industry’s economic and employment outcomes.

“We have made it quite clear we are looking at ways to secure the state’s economic future by investing in industries that grow the economy and provide substantial benefits to the community,” Mr Wingard said.

This funding will help the racing industry build the infrastructure it needs to create a viable long-term business model which will support South Australian jobs well into the future.”

The racing industry has battled to stay on track since last December, when the Government withdrew its $3 million sponsorship of the Adelaide Festival of Racing, which Thoroughbred Racing SA said forced it into a $2.25 million infrastructure funding cut.

It prompted the state’s leading horse trainer Tony McEvoy to cut back his Barossa stable and set up a 100-stable complex in country Victoria.

He last month planned to reduce the number of horses at his Barossa Valley stable by as many as 30, but pledged to build back again if they reduced the gambling tax.