The South Australian racing industry is the only major jurisdiction without any assurance that any of the budgeted $37m raised from the controversial "Point of Consumption" tax in South Australia will be returned to the industry.
South Australia's tax rate of 15%, compared to 10% in NSW and 8% in Victoria, has seen corporate bookmakers offer less incentives for punters to wager on South Australian racing leading to a downward spiral in industry revenue.
President of the South Australian Thoroughbred Breeders Association, Chris Watson is concerned that whilst other States are now being compensated for the income lost due to the new taxes, the State Government in South Australia is yet to provide the local industry with any assurances of support.
"Our industry is at least $5m worse off every year as a result of a tax that is raising $37m and the current Liberal Government seem ambivalent," Watson lamented.
"As an industry we can be self-funded with proceeds from a tax that is only possible due to the product we provide. The resultant uncertainty has pushed pause on investment throughout our industry, it is costing jobs," Watson continued.
As other State Governments have openly stated that "they do not want to harm the racing industry" as a result of the Point of Consumption tax, those in South Australia Racing and Breeding are not being offered the same protection.
"Our governing body TRSA have had a proposal with the State Liberal Government for months but it does not appear to be a priority which is incredibly disappointing," Watson concluded.
The South Australian Thoroughbred Breeders Association operates to promote, advance, encourage and coordinate the thoroughbred breeding industry in South Australia.
SA Thoroughbred Breeders Release
