Page 2310 - Week 07 - Wednesday, 3 August 2022
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
next year, is not coming from ACT horseracing; most of it is coming from other activities.
We heard from Dr Paterson about the harm caused by online sports betting; she has spoken really well and passionately about that. We understand—common sense tells us—that online sports betting is up. A glance at Sportsbet’s home page today shows that. They have horseracing there. Most of it is interstate. Very little of it is here. They also have greyhounds, AFL, NRL, EPL, MLB, FIFA battle cup, and Beauty and the Geek!
What a business puts on their website is what they know sells, and it is what they think they have to offer the world. That website shows us that what is on offer is not ACT horseracing. Today, people in the ACT will bet on all of those events. They will pay their point of consumption tax, and that money is not primarily coming from ACT horseracing.
How much is coming from ACT horseracing? It is hard to find out. The industry have spoken about the point of consumption tax revenue, which is expected to be, in total, $23 million next year. They told ABC that “the bulk of that funding would be coming from the racing industry”. I was surprised to read that quote. Previous investigation from the Independent Competition and Regulatory Commission found that racing taxes are a minor and diminishing component of ACT gambling tax.
The commission’s view has been confirmed by several people I have spoken to who are working in this area. I checked the Australian gambling statistics recently. Those statistics show that bookmakers on course and on-course totalisator expenditure for the ACT was less than $250,000 in 2018-19, so it looks to me like ACT horseracing betting might be under $250,000. It is hard to read those figures. I do not wish to contribute to any more confusion in this area, so I will put that question to the Treasurer for confirmation. But we know from multiple sources, including independent public sources, that ACT horseracing tax is a very small component of ACT gambling tax.
In any case, you do not get your taxes back. That is not how tax works. GST on an industry is not sent straight back to that industry. Income tax is not delivered straight back into your bank account. The government collects tax and spends it on services that are in the public interest, like health, education, housing and the climate crisis. You will get the benefits of those services, but you and your industry do not simply get your tax back.
How much does the ACT horseracing industry contribute to the ACT economy? This is also really unclear. The industry has cited a figure of $55 million and over 400 jobs, and those figures were echoed in Mr Parton’s motion. I have never seen those figures verified independently. Thoroughbred Park’s annual report last year said that they spend $1.68 million on wages and salaries. That looks to me like 20 or 30 full-time jobs. The ACT government is giving them five times more public funding than they are putting into jobs.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video