NSW Treasury Postpones Tax Increases
Loosening the Pursestrings: A New Twist on Casino Taxes in Australia
Australia's gambling scene is about to heat up, but not for the reasons you'd think. After a series of scandals rocked several casino brands, the government proposed a substantial tax hike. Initially slated for July, this new levy would wring $364 million from the Crown and Star casinos alone over a three-year span. But thanks to a little delay, it seems these casinos will be dancing a bit longer.
The mastermind behind this seller's remorse? The treasurer himself, Daniel Mookhey. The new rates were budgeted, but—surprise, surprise—they ain't been legislated yet. And as it turns out, nobody's even had the courtesy to chat with the casinos about this little financial curveball. According to Mookhey, these are all the reasons for the holdup.
Taxing Matters Pushed Back to August
Mookhey's aiming to tread a fine line between playing by the rules and making everyone happy. With both the Star and Crown punished for past misdeeds and hefty fines, they're undergoing a transformation. Still, with these new levies looming, the pressure's on.
The delay's had a silver lining for Star Entertainment, leading to a fair jump in share prices. But gambling researcher, Mr. Livingstone of Monash University, finds this delay peculiar considering the state's fiscal condition, which borders on the precarious. With a whopping $33 billion in additional expenses due to the pandemic and natural disasters, the government's got its hands full.
Mookhey explains that continuing to spend haphazardly would leave the Reserve Bank with no other choice but to ratchet up interest rates and start cashing in on those benefits. Enter Tim Costello, an anti-gambling campaigner who's none too pleased with Mookhey's decision. Doubly so given that the Crown casino in Melbourne's set to shell out a cool $250 million fine, while the Star Casino appears to've skated by rather unscathed.
Star Entertainment Group's spokespeople have offered an olive branch, promising continued cooperation with the government on all NSW matters. If all goes according to plan, we could be looking at a new tax hike as early as August, provided the government gets its legislative ducks in a row.
Conclusion
So, what's the verdict? Daniel Mookhey, NSW's treasurer, puts the kibosh on the proposed tax hike originally slated for July, moving it to August. Despite the financial hardships the country's facing, the previous government opted to budget these increases without proper legislature and communication with the casinos—a move that hasn't gone unnoticed.
As the dance between the government and the casinos continues, one thing's for certain: the stakes have never been higher.
- The delay in the proposed tax hike on Australia's casinos, originally scheduled for July, is now set to occur in August, with Daniel Mookhey, the treasurer, aiming to balance financial reform and maintaining good relations.
- Amidst a turbulent financial landscape, with increasing expenses due to the pandemic and natural disasters, the government's decision to postpone the tax hike on the Star and Crown casinos has drawn criticism from anti-gambling campaigners, such as Tim Costello, due to perceived inconsistencies in the penalties imposed on each casino.
