Star Sydney jobs at risk due to tax hike, union warns
The United Workers Union has expressed concern that a rise in gaming tax could result in the loss of hundreds of jobs.
Australia.- The United Workers Union, which represents thousands of employees at the Star Sydney casino, fears that the state’s gaming tax increase will lead to job losses. It’s seeking an urgent meeting with New South Wales treasurer Daniel Mookhey.
The union’s director, Dario Mujkic, said the proposed tax hike could cost Star Sydney AU$100m a year, and that this will hit the casino’s 4,500-strong workforce of gaming, cleaning, hospitality and security staff.
From July 1, casino gaming profits will be taxed at 60.67 per cent, up from 31.57 per cent now. Former treasurer Matt Kean announced the move in December 2021, saying that it could raise an additional AU$364m (US$244.2m) over three years to help to balance the state’s budget after the impact of the Covid-19 pandemic and natural disasters.
However, The Star, complained that there was no consultation and that the move would make the tax rate in New South Wales would be higher than that in Victoria. The United Workers Union wants assurance that jobs will be protected. Mujkic said the union has met with Star several times since the announcement and that the casino forecasts potential annual losses of AU$100m.
Mujkic told The Sydney Morning Herald: “Our union believes in progressive taxation, but I don’t think this proposal was ever about tax justice, it was really about having someone – Star – to attack politically in the context of the gambling reform debate.
“Star has been fined by regulators left, right and centre, and they are going through a very thorough remediation program. That is entirely appropriate because of misconduct and poor management. But I think this tax increase was additional to that.”
Mookhey is expected to announce today (April 17) that he will publish the new government’s first budget in September, which is common after an election. Parliament’s economic statement will be submitted in June.
