NSW clubs are waiting for clarity on government considering a major hike to gaming machine taxes in clubs, as part of its ongoing reforms toward reducing harm in the community.
In NSW revenue from poker machines is calculated quarterly, and there are considerable differences in the rates paid by hotels and those paid by clubs, which are given concessions due to their non-profit status and support of local communities.
For example, under the current scheme clubs pay no tax on profits below $250,000, while hotels start paying tax after $50,000.
There has been extensive speculation on the matter, referring to a would-be “super tax” to bring clubs more in line with pubs, which are privately owned. The scuttlebutt proffers that the Minns government may ‘spin’ the policy as a way to fund harm minimisation programs, such as domestic violence and new gaming regulations.
Despite the lack of clarity, at least one publication championed, prematurely, that the initiative had been scrapped.
The uncertainty has left a lot of clubs searching for answers as they are kept in the dark about whether or not changes will be made. Some have spoken of advice through government contacts that cabinet “will vote on recommendations” from NSW Treasury, and that the current rate paid by clubs may be greatly increased, potentially doubled for some venues.
Premier Chris Minns’ administration is due to hand down the state budget in June and officials have remained coy on the speculation, refusing to adjudicate on changes being in or out during state parliament question time this month.
Gaming Minister David Harris offered that they would not be “going to go through an exercise of ruling things in and out”.
Treasurer Daniel Mookhey has conceded government has asked his department to conduct “detailed economic modelling” that is likely to consider a cost-benefit analysis on the increased revenue versus the possibility of bankrupting some clubs, which would have a detrimental effect on both the coffers and the clubs’ communities.
Addressing questions, the Premier quipped that they will confirm and release the budget “when it is budget day”.
A government spokesperson reiterated to ClubTIC that the government is committed to “evidence-based gambling reform” and is currently examining the final roadmap provided by the independent panel on gambling reform, which includes the viability of rolling out cashless gaming.
“We need to get the balance right between implementing effective harm minimisation measures and the complexities and costs to industry and jobs associated with implementing a mandatory card-based system.
“A series of options are in the process of being developed, and contrary to recent reporting, that process remains ongoing.”
