Legislation to slash TAB wagering tax by $12 million per year was introduced into State Parliament today.
Legislation to slash TAB wagering tax by $12 million per year was introduced into State Parliament today.
Racing and Gaming Minister Mark McGowan said the tax cuts had been an election commitment and would complete an eight-year, $80 million State Government funding boost to Western Australia's racing industry.
"In 2001, we reduced the rate of TAB wagering tax from five per cent to 4.5 per cent of turnover," Mr McGowan said.
"This latest cut - which will apply to off-course racing totalisator betting - will effectively set the rate at about 3.5 per cent of turnover.
"This represents a 30 per cent overall reduction in wagering tax since the Labor Government took office in 2001."
The Minister said the Bill would also change the way the tax was calculated.
"The new taxation regime will replace the current method of assessing TAB wagering tax on turnover with a new system based on gross revenue," he said.
"This will provide a fairer taxation regime for off-course racing totalisator wagering by aligning the tax with the gross revenue tax levied on gaming machines."
The new tax rate will be set at 11.91 per cent of gross wagering revenue after GST is netted off, which is lower than the tax rate in the major racing States of New South Wales, Victoria and Queensland.
Mr McGowan said the State Government had introduced a number of positive changes to the racing industry in WA since coming to power in 2001, which had contributed to a major turnaround in the health of the industry.
"The Government's tax cuts have had the effect of stimulating economic activity in the racing industry and this means more owners, more jobs and more opportunities for small businesses," he said.
"On completion of the Government's second term in 2009, it will have injected approximately $60million in financial incentives into the State's racing industry through taxation relief initiatives.
"These changes come at a time when the State Government is investing a further $20million in country clubs through its regional racecourse infrastructure grants program."
The Minister said the tax reforms would provide a significant boost to the racing industry through increased racing club distributions, leading to higher stakemoney and improved facilities.
