Pokies tax rates a $250m gift for casino operator, MP says

The government has come under fire for legislation which introduces different tax rates for gambling in different venues. LATEST >>

THE unexplained difference between the tax rates proposed for gambling in pubs, clubs and casinos would benefit Federal Group by nearly $250m over the next 20 years, the Legislative Council has heard.

Debate on the government's gambling industry reform legislation is entering its final stages in the Upper House.

It adjourned on Monday without a final vote. This is parliament’s last sitting week for the year.

Independent members Meg Webb, Rob Valentine, Mike Gaffney, Ruth Forrest, Tanya Rattray and Rosemary Armitage on Monday spoke and voted in favour of a series of amendments on tax rates and the community support levy included in the bill.

Most of the votes were tied 7-all when Labor members — with the exception of Bastian Seidel — backed the Liberals. Tied motions fail under the standing orders.

No Labor member spoke until the dying moments of the debate, which consumed an entire day of sitting time.

Ms Webb, the independent MP for Nelson, attempted to compel the House of Assembly to apply the same tax rates for every gambling venue.

All poker machines are currently taxed at 25.88 per cent, but under the new legislation, casinos will pay 10.91 per cent, clubs 32.91 per cent and hotels 33.91 per cent.

Keno is currently taxed at 5.88 per cent, but under the new arrangements, Keno in casinos will be taxed at 0.91 per cent and outside of casinos at 20.31 per cent.

Premier Peter Gutwein informed Federal Group of the changes before the state election, making them public only after the Liberals were returned to office.

Ms Webb described the tax differences as a massive gift to one operator at the community’s expense.

Independent MLC for Nelson Meg Webb.

“If we chose to tax casino poker machines at the rate proposed for hotels … over the licence period we would be collecting for our state an additional $248 million,” Ms Webb said.

“That’s a quarter of a billion dollars in state revenue going begging because we’re doing a sweet deal for the owners of our casinos, for Federal Group

“It’s an enormous quarter of a billion dollar difference in revenue to our community, to our hospitals and our schools, to our mental health services, to our family support services, to build more social housing. A quarter of billion dollars over the licence period being given to one business instead of our community.”

Leader of government business Leonie Hiscutt explained that the tax rates had been modelled on the tax rates applicable to casino operators in northern Queensland.

“I can confirm that Treasury considered the taxation models in each Australian jurisdiction, along with the demographics and casino markets in each,” she said, reading from a prepared statement.

“Those were compared to the Tasmanian casino market, in terms of the demographics, size of the market, and products offered.

“While it is understandable that members are focused on individual taxation lines, the government has considered the financial model as a whole and while there are decreases in some taxation laws, there are increases on others, with the total package delivering an additional $8.5 million to the state, and $17 million extra to hotels and clubs, and $20 million less to Federal Group.”

Debate on the bill will continue on Tuesday.

Follow @DavidJKillick