NSW Government defers casino tax hike until August
Treasurer Daniel Mookhey said the delay is necessary to “minimise the impact on jobs”.
Australia.- The planned tax increase for Sydney’s casinos, originally set to take effect on July 1, has been deferred until August, as the New South Wales (NSW) government aims to engage in discussions with operators.
The tax rise is intended to raise an additional AU$364m (US$244.2m) over three years. However, the delay comes as a result of the current government’s concern regarding the lack of communication with the affected casinos.
During an interview with ABC Radio Sydney, treasurer Daniel Mookhey emphasised the necessity of ensuring compliance and reform in the business models of the casinos, as well as minimising the potential impact on jobs.
The decision to postpone the tax hike has raised questions and garnered mixed reactions. Charles Livingstone, a gambling researcher from Monash University, expressed surprise over the deferral, particularly given the state’s financial situation.
He told ABC: “The casino is essentially admitting that without being able to exploit vulnerable people and without the benefits of money laundering from criminal syndicates, they can’t make a profit.
“I suspect that there are plenty of organisations that would be willing to take on the role at the higher tax rate in the expectation of making revenue.”
Anti-gambling campaigner Tim Costello also expressed disappointment with the government’s decision and stated: “It says that they are beholden as a government to whatever duties and debts they owe to the gambling industry because the finances demand this increase.
“The public knows that the Royal Commission into casinos, they found that Star Casino was much worse in its behaviour than Crown in Melbourne which has already been fined more than AU$250m, so it seems double standards to me.”
Treasurer Daniel Mookhey is expected to deliver a budget update, outlining the state’s position and proposed spending cuts, in the coming days.
