Page 4609 - Week 15 - Tuesday, 6 December 1994
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MS SZUTY (9.15): I also believe that this Bill is rather marginal in terms of the Assembly's support of it. My reaction to it is that I am rather ambivalent about it. We certainly know what the Government proposes by this legislation and, indeed, what Casino Canberra proposes. The casino proposes to expand its business to target what it terms the lucrative international junket market. As explained in the Chief Minister's presentation speech:
Junkets, Madam Speaker, are essentially groups of high stake overseas players who are organised by a junket operator or agent to play at a casino. The junket operator is paid a commission based on the value of the chips purchased or the amount wagered during a junket visit. The casino operator also offers direct inducements to the players to gamble in the casino, such as complimentary airfares, accommodation and meals.
Further, it is stated:
... to compete effectively with other casinos for the patronage of junket operators and players, Casino Canberra is seeking a lower tax rate on junket profits. Currently the casino's gross profits are taxed at a rate of 20 per cent plus a supertax. The supertax ceases at the end of 1995.
Madam Speaker, looking at this legislation, I am not quite sure why inducements need to be offered to operators to come to the ACT to gamble. These people are, after all, presumably very wealthy people who, I would have thought, would have needed no inducement at all to come to the ACT.
It is also noted that a lower tax regime would also apply to junket players coming here. Philosophically, I have some difficulty with this, although I understand that in order to attract junket players at all it is going to be necessary to adopt a lower tax regime in relation to the casino's gross profits, a proportion of which of course is returned to the Territory. Mr Kaine asked how many high rollers we have actually had at the casino in the ACT. I understand that the answer to that question is one. We have had only one high roller ever come to the casino here in the ACT.
Madam Speaker, it was represented to me by the officers from Treasury that the tax rates currently applying to the ACT casino are the highest in Australia. As Mr Kaine has already pointed out, that is not altogether an accurate picture. The casino is currently taxed at 20 per cent plus a supertax. The supertax is payable in lieu of an up-front premium higher than the $19m paid to the ACT in 1992. The casino premium payable at that time could have been some millions of dollars more than that, with no supertax at all being payable by the casino over a longer period of time.
The Chief Minister's presentation speech also goes on to say that junket business can result in large wins or large losses. I take Mr Kaine's point that the casino is really running the risk of sustaining a rather heavy loss on its operations. I believe, Madam Speaker, that the Darwin casino sustained a loss of some $25m due to one individual junket player. I think this Assembly needs to approach this issue with some caution so that we put the necessary processes and procedures in place to ensure that
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