NSW Casinos Have Agreed to Pay More Tax Following Negotiations with the State Government

SYDNEY, NSW, (November 20, 2023) — It appears that there have been significant developments regarding the taxation of the two major casinos in New South Wales (NSW), namely Crown Sydney and The Star. Here’s a summary of the key points from the information you provided:

1. Tax Increase Agreement:
   • The Crown Sydney and The Star casinos have agreed to pay more taxes following prolonged negotiations with the state government.
2. Backdated Tax Increase:
   • The tax rates for both casinos will increase, and this change will be backdated to July 1.
3. Poker Machine Tax Reprieve:
   • The Star has been granted a reprieve on a planned poker machine tax increase until 2030.
4. Transitional Levy for The Star:
   • The Star has agreed to pay a transitional levy until the new tax regime is implemented.
5. Legislation to Protect Jobs:
   • The government plans to introduce legislation aimed at safeguarding over 3000 jobs at The Star over the next six years.
6. Tax Rate Changes:
   • Tax rates for the casinos will increase from 17.91% to 20.25% starting from July 1, 2023.
7. Duty on Rebate Play Increase:
   • Duty on rebate play (involving non-NSW players) will increase from 10% to 12.5%.
8. Additional Tax for High Gaming Revenue:
   • The Star will also pay a 35% tax on total gaming revenue exceeding $1.125 billion in a financial year, in addition to existing duties.
9. Protecting Jobs and Restoring Trust:
   • The government’s negotiations and agreements are aimed at protecting jobs, especially at The Star, and facilitating ongoing efforts to restore The Star Sydney’s reputation.
10. Challenges Inherited by the Current Government:

• Treasurer Daniel Mookhey mentioned that the negotiations were one of the most difficult challenges inherited from the previous government, which he claimed had mishandled the casinos policy.

11. Origins of the Taxation Changes:
    • The planned tax increases for Sydney’s casinos were initially announced by the former coalition government led by Dominic Perrottet in December 2022.
12. Revenue Generation Target:
    • The changes in taxation were intended to raise $350 million over three years.
13. CEO’s Response:
    • Star Group CEO Robbie Cooke expressed appreciation for the constructive engagement by the government and highlighted that the formalization of the new arrangements would protect jobs and allow the ongoing work to restore The Star Sydney.

These changes indicate a complex negotiation process between the casinos and the government, with a focus on balancing the financial interests of the casinos with the protection of jobs and revenue for the state.

SOURCE: LI Contributor.