Page 2316 - Week 07 - Wednesday, 3 August 2022
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The MOU also enables us, as we have heard, to capture information, data, about the racing industry’s broader contribution to the territory economy across jobs and goods and services. That can help the government to make further informed decisions about appropriate funding arrangements into the future.
I want to share an anecdote because I thought it was pretty funny at the time. In a previous submission to government on the benefits of the racing industry to the territory, when I had portfolio responsibility, I was asked to consider—and I am not kidding you here—the contribution that the racing industry makes to fashion in the territory, as one of the reasons why it should receive government funding. I acknowledge the creativity of submissions that often come forward to government. The racing industry makes many contributions across our community, but I would not have put forward fashion in that context. That was an earlier era; things are a little more sophisticated in terms of data and engagement with government. I want to acknowledge that the MOU that Minister Steel has negotiated has moved beyond debates about a contribution to the fashion industry.
As Minister Steel’s amendment outlines, Canberra’s racing clubs will receive around $8 million a year, indexed over five years under the current MOU, which represents about $41 million across the MOU period, as has been indicated by other speakers. In the context of the budget debate that we will have in October, in the detail stage of the appropriation of the government directorate that provides the payment to the racing industry, the Greens party have indicated they will seek to move an amendment, as you can do under the self-government act, to reduce the appropriation. That would be by a one-year amount, because we do not appropriate for five years; we appropriate for one year, so it would be a modest reduction in that appropriation.
It will then be for the Assembly to vote yes or no to that Greens amendment. We are clear on the public record as saying we will not support that amendment, so the decision ultimately on whether the appropriation is reduced will lie in the hands of
the opposition.
I have come to what I think to be the logical conclusion—that all of the statements that have been made would indicate that the Liberal Party would not support the Greens amendment in that regard.
As I have indicated, the amount in this MOU period is $41 million. It is worth pointing out that the industry also receives income generated through race field information charges paid by wagering operators, a framework that was established by the government, and further revenue through their own sponsorship arrangements, and, of course, at the racecourse, the race day food and beverage sales.
Minister Steel’s amendment also clarifies that the rate of the betting operations tax increased from 1 July from 15 to 20 per cent for online gaming operator betting revenue above the $150,000 threshold. This is expected to result in total tax revenue of around $23.7 million in the 2022-23 financial year—of course, that is from that multitude of sources. That is not racing’s share of the point of consumption tax. Racing’s share is considerably lower than that. I note that the increase in the point of consumption tax is broadly in line with New South Wales and Queensland.
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