Queensland racing bodies set to strike on Cox Plate and Melbourne Cup after tax money snub

JOCKEYS in Queensland, along with horse trainers, owners and breeders, have threatened to strike on two of the busiest days on the racing calendar in response to a State Government tax announcement.

KEY Queensland thorough­­bred racing representative bodies last night signed off on an explosive move to initiate Cox Plate and Melbourne Cup day strike action in retaliation to the code’s snubbing in last weekend’s state government point of consumption tax announcement.

Queensland introduced a point of consumption tax on October 1, whereby bookmakers and wagering providers will be taxed 15 per cent of all revenue they generate from Queensland based customers.

TOP TIPS: WEEKEND BEST BETS

The 15 per cent figure is significantly higher than the eight per cent and 10 per cent that will be introduced on January 1 by the respective Victorian and NSW governments.

Estimates have the tax hauling in $70 million to government coffers in its first year.

The Queensland racing industry had lobbied for a significant cut, arguing money generated by racing should be invested back into the industry.

But Treasurer Jackie Trad announced last week the industry would receive a one-off $20m grant for harness and greyhound infrastructure and a $17.5m ‘write-off’ of an existing loan.

Thoroughbred racing was responsible for 77 per cent of Racing Queensland revenue last year and the industry is incensed that it will not receive a single cent of the POC money.

This is in stark contrast to NSW, where the three racing codes can expect a $40m annual windfall from POC receipts.

Queensland racing could come to a halt on Cox Plate and Melbourne Cup Day. Picture: AAP

A letter will be sent to Premier Annastacia Palaszczuk, Treasurer Jackie Tradd and Racing Minister Stirling Hinchliffe outlining the intention to stand down all industry participants from meetings at Doomben, Gold Coast and Toowoomba on Cox Plate Day October 27, and again on Tuesday November 6, Melbourne Cup day.

The letter has the backing of the Queensland branch of the Australian Trainers Association, Queensland Jockeys Association, Queensland Racehorse Owners Association and Queensland Thoroughbred Breeders.

“We have taken the approach that discussion and negotiation is no longer viable, and that the only way we can make our point is unfortunately through industrial action which is being requested vocally by our participants,” the letter, which has been signed by respective association Presidents Chris Munce, Glen Prentice, Vince Pennisi and Basil Nolan, reads.

“We formally advise the Queensland Government of our total dissatisfaction with the lack of both financial and emotional interest in our industry, a concern that has been ongoing for many years but reached an all-time high with the recent announcements on the distribution of the Point of Consumption Tax.”

The government snub is seen as a “double whammy” because the extremity of the 15 per cent fee is expected to impact turnover on Queensland racing and as a result, revenue returns to Racing Queensland.

Several well-placed sources south of the border have suggested the challenges to Queensland racing will be “insurmountable” if it does not receive a cut of the POC receipts.

Deputy Queensland Opposition Leader Tim Mander said the planned strikes were extraordinary.

“The thought the racing industry could go on strike is unprecedented, and shows the lack of confidence they have in the Palaszczuk government,” Mr Mander said on Friday.

NSW has a 10 per cent POC tax, while Victoria imposes an 8 per cent levy, with Queensland introducing a 15 per cent tax this week.