John Letts interviewed SAROA secretary Richard Stafford on RadioTAB on Wednesday morning. They discussed the government funding issue as well as programming of the Adelaide Cup and the mighty mare Winx.
SAROA Owner of The Month for December was Esther Henshall for Canford.
As Esther has been unwell SAROA secretary Richard Stafford spoke to Matt and Tom about Canford and Esther on Vision Australia Radio
Have you heard about the All Star Mile if not try here https://www.allstarmile.com.au/
10 horses in the field will be chosen by public vote.
SAROA urges its members and their friends and their friends friends (hopefully you have got the drift by now) to vote for SA trained and owned horses. They are Balf’s Choice – Ryan Balfour, Steel Frost – Will Clarken, Waging War – MacDonald/Gluyas, Calderon, Miss Siska, Brown Ben, Mintha, Laure Me In – Tony McEvoy, Jester Halo – Darren Kolpin .
Without playing favourites it should be noted that Balf’s Choice is well up in the rankings and stands a very good chance of being in the final top ten.
Richard joins Tom and Matt on Vision Australia Radio to explain how TRSA is funded.
They discuss the amounts obtained from both SA TAB and from the corporate bookmakers.
In particular they address the issue of whether racing supporters should use SA TAB or the corporates.
In light of several questions I have received regarding the various betting taxes etc. I took the opportunity request some further clarification from TRSA Chief Operating Officer Nick Redin as to how it all works. Thanks to Nick for his concise explanation.
In a normal year TRSA would generate 55% of its revenue from the SA TAB, about $33M and 35% from
Net Betting Operations Contributions (BOC) (known as race fields in other States) or about $ 22M.
The $22M net betting operations is made up as follows
Gross Betting Operations $ 29M – these are payments from all other wagering operators bar the SATAB
Less Interstate race fields fees paid $ 7M
These figures can be found on page 40 of our 2018 annual report at https://www.theracessa.com.au/files/8845_2018_trsa_annual_report.pdf?v=304
It should be noted that because SA was the first state to introduce the Point of Consumption Tax (POC) and because our POC rate is the highest in the country corporate bookmakers have been actively discouraging betting on SA races which continues to have a significant negative effect on the BOC returns.
Regarding the best return for the SA industry it is wagering through the SATAB, preferably on SA thoroughbred races. The Industry gets $7.66 for every $100 bet through the SATAB and only $ 2.59 per $100 bet through all other wagering operators. About 3 to 1 in favour of the TAB.
TRSA encourages all racing participants to bet through the SATAB rather than a corporate.
Richard updates Tom about Thursday’s meeting with TRSA to discuss the campaign to gain more funding from the SA government to support racing in this state. Matt joins the conversation and discusses several aspects of the meeting in particular the POC tax.
Industry groups met with TRSA to discuss progress in their negotiations with the government. We are indebted to Sam Hayes (SA Thoroughbred Breeders) for his notes on the meeting and the actions that should be taken as a result.
TRSA INDUSTRY MEETING – Jan 17
TRSA and the racing industry have two goals
Reducing the POC tax rate from 15% to 10%
A re-investment of 50% rising to 75% of the total POC revenue back into the racing industry
POC revenue is currently $32m of which $16m is rebated back to the TAB ($16m is the TAB’s contribution to the tax). TAB are exempt from having to pay the tax so they pay it and it then gets rebated back each month. Therefore Government net $16m from the POCT of which $3m is raised through sports betting and $13m is raised from the three racing codes. Horse racing’s contribution is circa $11m. We are asking for 50% rising to 75% of the total $16m that the Government collects after paying back TAB.
TRSA are hopeful that there could be a review of the 15% tax rate in the next couple of months. Treasury has requested modelling to show the impact of a reduction in the tax rate from 15% to 10% on POC revenue, BOC revenue etc. TRSA believes the reduction rate will have minimal impact on revenue.
TRSA explained that prior to the introduction of the POC tax the SA Racing industry was growing at 9% per annum.
A lowering of the tax rate from 15% to 10% would stop the retaliatory action from bookmakers who are diverting traffic away from SA Racing. TRSA estimate that would have positive annual impact of $2m to $3m in BOC revenue.
Whilst a reduction in the POC tax rate it critical, if it is achieved, the industry needs to continue lobbying until we get the 75% re-investment of the POC revenue.
Treasury have requested a business case as to why the industry needs the 75% re-investment of POC revenue and how the funds are to be spent. The Government needs to be persuaded that such an allocation of tax revenue would be a good investment for the State. TRSA have this 80% completed and intend to review it at their next Board Meeting on Thursday, January 31.
TRSA have appointed Phil Martin from Michels Warren to prepare a “Support SA Racing” Public Relations campaign. Phil Martin will be providing us with;
Letter templates for MP’s
Campaign Fact Sheet
Master presentation deck
The State Government are considering our case and waiting for more information from the industry in terms of a commercial business plan. Whilst this is happening it is very important that we keep up the public pressure however we must do so without compromising negotiations with the Minister of Racing, the Treasurer and the Premier. SARIG will be talking to TRSA and Phil Martin regularly so we know when we need to be more or less vocal.
We would encourage all members of our respective associations… owners, jockeys, trainers, bookmakers and breeders to write to their local members of state parliament asking for our industries proposal to looked upon favourably. Please see below the key points we would like members to make when they write to MP’s.
KEY MESSAGES for PR CAMPAIGN
We have the equal highest POC tax rate in Australia
The high POC tax rate has created conditions that are discouraging investment in SA and driving jobs and investment interstate
Prior to the introduction of the POC tax our industry was GROWING at 9% per annum
SA is the only mainland State where funds raised from the POC tax are not re-invested into the racing industry
Racing in SA needs a level playing field to ensure we can compete sustainably on our own terms
Past State Governments have created this unlevel playing field and the current State Government has the power to fix it
Prizemoney is source of wages for our industry and any cuts seriously impede our ability to make a living
SAROA secretary Richard Stafford talks to Tom and Matt about his personal experiences in racing including the highlights with Arinos (photo above) and Mile High (photo below)
Richard talks to Tom about various issues in racing, we are joined by Matt Kelly from SA Breeders
Sophie Logan was awarded the SAROA Apprentice Award for 2018. She admirably met the criteria that we set of going the extra mile for owners. Following a short career on the Victorian Picnic race circuit she decided to further her career as an apprentice here in SA.
After completing the required number of rides in trials, she recently obtained her ticket to ride on the provincial circuit. She won on Euro Gold at Naracoorte, her second professional race ride and followed up three days later with a win on Owl On The Prowl in the Whycheproof Cup.
While she was going through the process of obtaining her licence her master, Grant Young fell sick and has been hospitalised for more than two months. Sophie has been required to step up and help with the running of Grant’s stable acting as stable foreman, doing media interviews, strapping and interacting with owners while at the same time gaining her licence and commencing riding.
SAROA congratulates Sophie on her achievements and wishes her every success in the future.
Sophie was interview on the Vision Australia Punter’s Club by Tom Eglington and Mal James and audio of the interview is available below.