The state announced historic reforms for the racing sector, including a 15% in point of consumption tax.
Australia,- The Western Australia government announced this week that it will push ahead with the sale of the state-owned betting agency TAB, in a deal that could bring them up to €450 million.
The government said that 35% of the proceeds from the sale of the state-owned company would be directed to a new fund dedicated to the racing industry. The sale of TAB is part of a bigger reform package that is set to help the industry.
Treasurer Ben Wyatt said that the proposal is designed to secure the future of the industry, which he claims won’t survive without this intervention. “This is the most significant reform proposal in a long period of time and, in our view, clearly the most generous package for the industry in the country. The TAB is using its cash reserve to keep it going— that’s not a sustainable way forward,” he said.
Wyatt also said that the two existing taxes, the racing and wagering WA tax and the bookmakers’ betting levy, will be replaced with a point of consumption tax. “The reason why every state in the nation has gone down a point of consumption tax path is because it means that those [online and] foreign-owned corporate bookmakers will for the first time be paying tax in Western Australia,” he added.
The local racing industry will receive 30% of the total revenue collected from the new consumption tax.
Country Racing Association of Western Australia Kevin Scott said: “It’s been no good the way [the government has] been going on about wanting to sell the TAB, at least now there will be some positivity. I think the TAB in WA has been very well run and we’ve been getting a good income to our racing industry out of it, so the buyer would have to do a better job than what we’re doing at this stage.”