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Legislative Assembly for the ACT: 2000 Week 5 Hansard (11 May) . . Page.. 1420 ..
MR HUMPHRIES (continuing):
In conclusion, this bill is a further indication of the territory's intention to give effect to the IGA and is a consequential step in the process of implementing the national tax reform system.
Debate (on motion by Mr Quinlan ) adjourned.
MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (10.42): Mr Speaker, I present the Gambling Legislation (GST) Amendment Bill 2000, together with its explanatory memorandum.
Title read by Clerk.
MR HUMPHRIES: Mr Speaker, I move:
That this bill be agreed to in principle.
This bill continues to fulfil the ACT's commitment to the IGA. Under the IGA, states and territories have agreed to take account of the GST impact on gambling operators. Gambling revenues forgone are covered under the guaranteed minimum amount, the GMA, whereby states and territories are guaranteed by the Commonwealth to be no worse off by replacing state and territory taxes with revenue from the GST.
Under the GMA, there are two options available to states and territories to adjust their gambling tax arrangements. One is to allow the gambling operators to claim a credit for the GST paid on their margins against their gambling tax liability. Under this option, gambling operators would claim a non-refundable credit against their ACT gambling tax liability for GST already paid on their margins. The credit would be limited to the size of any ACT tax liability. Secondly, they can reduce the gambling tax rate to take account of the GST but not exceeding 9.1 per cent of player loss. Under this option, current tax rates for each gambling type would be reduced to account for the impact of the GST.
Mr Speaker, as several ACT gambling taxes have been structured to enhance competitiveness in the industry and provide relief for small operators, the application of a uniform approach for all gambling taxes would produce uneven impacts on operators, depending on the particular gambling sector they serviced. Therefore, rather than imposing a uniform approach which will create an uneven playing field for various gambling activities, the government has agreed to adopt options that are more responsive to the particular operating environment of each gambling activity in the ACT.
Specifically, they are: reduced tax rates for ACTTAB Keno and gaming machine tax for hotels and taverns; and credits against ACT tax liability for GST already paid for gaming machine tax for clubs, interactive gambling, casino tax, bookmakers' fees, sports betting, and ACTTAB licence fees.
All gambling taxes, save for gaming machine taxes, are set either by determination or by way of agreement between the ACT and gambling operators-for example, ACTTAB licence fees. Accordingly, specific legislative amendments were required only in two
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