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
- FAQ document
- 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