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Legislative Assembly for the ACT: 2000 Week 5 Hansard (11 May) . . Page.. 1421 ..
MR HUMPHRIES (continuing):
instances: first of all, the Gaming Machine Act 1987 to account for the tax rate reduction for hotels and taverns and tax credits for clubs; and, secondly, the Bookmakers Act 1985 to move to a quarterly ACT tax system.
Mr Speaker, gaming machine tax is currently collected from hotels and taverns at the flat rate of 35 per cent. For equity and efficiency reasons, the government has agreed to provide for a reduction in the tax rate from 35 per cent to 25.9 per cent to compensate for a 9.1 per cent GST rate.
In regard to clubs, while lower tax rates are the preferred option to take account of the GST for both clubs and hotels in some other jurisdictions, in the ACT it would result in clubs paying around $500,000 more in combined ACT tax and GST than they currently pay in ACT tax alone. This may have affected the viability of some smaller clubs. However, after extensive consultation with Clubs ACT, the government has agreed to provide the industry with a non-refundable credit against their gambling tax liability for GST already paid.
To this end, there is an industry agreement to the larger clubs accepting a discount of the credit equal to the refundable credit amount payable to the smaller clubs to support the ongoing viability of the smaller clubs. This would also remove the potential need for separate government assistance for smaller clubs and aligns with the state and territory undertaking under the IGA.
Mr Speaker, the clubs' undertakings would be implemented by giving a reduced credit for GST paid to larger clubs. The difference between the reduced credit and the full credit amount would then be used to refund GST paid by small clubs with no or minimal ACT tax liability.
Appropriate measures to account for the GST have now been initiated to vary the relevant agreements between government and the casino and ACTTAB operators; while amendments to the necessary subordinate legislation are also nearing completion for interactive gambling tax, bookmakers' fees and sports betting tax.
Mr Speaker, this bill is another of the steps in the process of implementing the national tax reform agenda, with significant benefits to the ACT in the long run.
Debate (on motion by Mr Quinlan ) adjourned.
MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (10.48): Mr Speaker, I present the Rates and Land Tax Amendment Bill 2000, together with its explanatory memorandum.
Title read by Clerk.
MR HUMPHRIES: I move:
That this bill be agreed to in principle.
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