Editorial: Racing tax shows up Labor’s arrogance

Labor’s “point of consumption” tax – announced last week as a win-win for the racing industry, is starting to become a problem for the Palaszczuk government.

Labor’s “point of consumption” tax – announced last week as a win-win for the racing industry, is starting to become a problem for the Palaszczuk government.

The POC tax is a 5 per cent levy on bets placed with online bookmakers, who have undercut Tabcorp and diminished revenue flowing into Racing Queensland.

The Courier-Mail does not have a problem with bookies – especially the big overseas-owned corporates – paying their way, and particularly when the existing playing field was not totally level.

But as is often the case in politics, perception is everything and with consultancy firm Anacta – which has some seriously strong ties to the Palaszczuk government – representing Tabcorp, it is not a great look. But compounding that issue is that for some bizarre and as-yet unexplained reason, both Treasurer Cameron Dick and Racing Minister Grace Grace didn’t even have the grace to meet with the corporate giants before announcing the tax – with Ladbrokes boss Dean Shannon saying yesterday they’d been completely blindsided. That’s not acceptable.

Customer's are seen inside a Tabcorp venue in Brisbane. (AAP Image/Darren England)

It is normal best practice for government ministers to meet with affected corporates before announcing a new tax. On this occasion, that did not happen. And that continues a seriously worrying trend by this Treasurer, who seems to have a problem engaging with the private sector. That must change – and the Premier should demand that it does.

The consequence of not having the decency to consult is that this has blown up in the government’s face. There are calls for Racing Queensland to release the modelling that it “used to justify” a new gambling tax amid claims the impact on the industry has been miscalculated by $50m.

Mr Shannon says the levy is a “complete stitch-up”.

Mr Shannon said the impact on the industry was 60 per cent to 70 per cent higher than the government claimed. He said financial modelling relied upon by the Queensland government indicated a $80m tax impact for Australian corporate bookmakers, but the real impact was closer to $130m. “This major discrepancy highlights major integrity issues on the modelling, and the backroom dealings with the beneficiaries.”

By not meeting with the corporate bookies before announcing the tax, the Treasurer has opened the door to phrases such as “backroom dealings” to be used. It’s such a bad move.

And what makes it worse is that Labor-linked firm Anacta Strategies lobbied the government for 10 months before Mr Dick announced the new levy – and so he clearly met with them.

By not meeting with the corporate bookies before announcing the tax, the Treasurer has opened the door to phrases such as “backroom dealings” to be used. (AAP Image/David Crosling)

The result is Premier Annastacia Palaszczuk has been forced to say she will consider broadening lobbying laws – after those revelations, and some questions yesterday about what work exactly Anacta’s chief lobbyist Evan Moorhead did for Star Entertainment, which runs the Brisbane and Gold Coast casinos.

Lobbying firms and consultants being given exclusive access and results that seem a bit too good to be true … it is becoming clearer every day that something is seriously wrong with the way this government does business.

The perception is that this government lets its mates closely into the decision-making process, while everyone else is frozen out.

Professor Peter Coaldrake’s review into government integrity is due out soon. Hopefully he has had a proper look at these vital issues.