$5.25m double hit for South Australian racing in 2019 as State Government and TRSA cut funding

South Australian racing has been dealt a $5.25 million double blow for 2019, affecting racing clubs across SA and potentially forcing more top trainers to abandon the state.

South Australian racing has been dealt a $5.25 million double blow for 2019, affecting racing clubs across SA and potentially forcing more top trainers to abandon the state.

Thoroughbred Racing South Australia on Friday morning announced that the State Government had withdrawn its $3 million sponsorship from the Adelaide Festival of Racing with the industry body itself forced to cut a further $2.25 million in infrastructure funding for its 25 clubs.

The funding cut comes after failing to gain government support following negotiations regarding the Point of Consumption Tax imposed on industry operations which nets the State Government $16 million annually.

SA was the first state to introduce the POC tax on bets made by SA racing and sports fans at 15 per cent, significantly higher than both Victoria (eight per cent) and New South Wales (10 per cent).

Queensland racing recently took strike action in October, which resulted in a $26 million prizemoney injection, while Racing Victoria announced last week a $40 million prizemoney boost, $33 million coming from Labor Government.

There was a one-off $4.85 million payment to the South Australian industry in June, but repeated lobbying to Treasurer Rob Lucas, Minister for Racing Corey Wingard and the Liberal Government has failed.

TRSA Chair Frances Nelson said the cuts were “deeply regrettable but unavoidable”.

“With the exclusion of Tasmania, every other state has now introduced a consumption tax. Each has recognised that it is money generated by the racing industry, and all have returned funding to the industry — but not in South Australia,’’ Nelson said.

“TRSA work to grow racing on behalf of the entire racing community in SA — an industry that supports the full-time employment of more than 3600 people and generates $400 million every year in economic benefits for the state.

“It’s also an industry where participants depend on prizemoney, which drives involvement and helps pay the wages of every participant at every level, while also stimulating external investment in the industry.

“We have had no choice but to announce these significant cuts in infrastructure grants for clubs and reductions in prizemoney because of the way racing is being underfunded and unfairly taxed by the State Government,’’ she said.

Racing at Morphettville racecourse on Adelaide Cup Day in 2018. Picture: Sarah Reed

That will mean regional racing clubs will miss out on critical infrastructure projects while the $1m Group 1 Goodwood and Robert Sangster Stakes are both set to plummet in prizemoney.

“It’s an extremely disappointing decision for our Board to have to make because we know the hurt it will cause across the entire racing community — particularly in regional areas where the infrastructure funding reductions will cut deepest,’’ Nelson added.

“The prizemoney cuts will also have a direct impact on the national standing of SA’s major racing carnival. More importantly it will also inhibit our ability to keep trainers in SA, some of whom are already moving their operations interstate,’’ she said.

Morphettville’s biggest meeting of the year, Adelaide Cup Day. Picture: Sarah Reed

Top SA trainers Lloyd Kennewell moved his stable to Melbourne at the start of the 2018-19 racing season, premiership winning trainer Phillip Stokes is putting the finishing touches on a new stable at Pakenham while young trainer Nick Smart moved to Ballarat at the end of 2017.

They join two of the biggest names in the sport — Hayes and Cummings — who started their careers in Adelaide before moving interstate in search greener pastures,

David Hayes established a new Lindsay Park at Euroa in Victoria on return from Hong Kong in 2014 and had a small satellite in Adelaide before abandoning that late last year.

John Hawkes is another former Adelaide trainer to make the move interstate while Mark Kavanagh also left Adelaide in search of better opportunities.

Nelson said the cuts could force a reshaping of the SA racing calendar long term.

“While the other state receive tens of millions from the governments to grow their industries, we receive none while also being forced to compete with one hand tied behind out back,’’ Nelson added.

“We remain hopeful that the Treasurer will listen to the very real concerns of the industry,’’ she said.