Star Sydney casino expected to be granted temporary tax reprieve

The New South Wales government is expected to phase in a planned tax hike.

Australia.- The New South Wales government will issue a temporary reprieve to Star Entertainment Group after months of deliberation over a planned tax increase. The Herald reports that treasurer Daniel Mookhey will announce a revised arrangement for the planned duty rate increase on gaming machine profits.

The government plans to increase the top tax rate on casino gaming machines to 60.67 per cent, which is expected to raise an additional AU$364m (US$244.2m) over three years. Last month, the United Workers Union (UWU) warned that such a move could lead to job losses among Star Sydney’s 4,500 staff members.

Sources suggest that a deal will most likely involve a staged transition to give the operator more time to stabilise. A Treasury spokesperson told the Herald the NSW government was “currently considering the next steps in relation to casino tax rates”.

The tax hike was initially announced by the previous government in December, intending to align casino taxes with those imposed on hotels and clubs. The Star Entertainment Group has been facing financial difficulties. It’s faced fines in Queensland and NSW amounting to AU$100m for misconduct and has set aside AU$150m in anticipation of fines from the anti-money laundering agency AUSTRAC.

See also: Star Entertainment fined over breaches at Queensland casinos