NSW Treasurer Postpones Imposition of Tax Increases
A hot topic in Australia lately involves the potential tax hike on several casino brands following certain incidents. Initially, the government proposed a tax increase generating an estimated $364 million over three years, primarily from the Crown and Star casinos. However, due to unanticipated circumstances, this hike seems to have been pushed back.
The delay in implementing the new tax rates, originally planned for July, has been announced by NSW Treasurer Daniel Mookhey. Despite the tax rates already being budgeted, they haven't been officially legislated yet. What's more, neither the casinos nor the government have communicated about these upcoming changes.
Budgeting without Legislation
In a bid to play fair and appease all related parties, Mookhey intends to follow the rules. Remember, both the Star and the Crown lost their licenses and must now revamp their operations while covering heavy fines due to unlawful activities.
The delay seems to have positively impacted Star Entertainment's shares, causing their price to soar. However, gambling researcher, Mr. Livingstone from Monash University, finds this delay peculiar given the precarious financial state of the state. With the aforementioned debt, one would think the government wouldn't hesitate to implement the proposed tax hikes.
The previous government, dealing with the COVID-19 pandemic and natural disasters, incurred an additional $33 billion in expenses, further stressing the budget. Mookheycomments that if the government continues to spend, the Reserve Bank might be forced to raise interest rates and tackle the financial consequences.
Tim Costello, an anti-gambling advocate, expressed disappointment over Mookhey's decision, citing double standards. Both casinos, while the Crown in Melbourne receives a $250 million fine for certain violations, the Star Casino appears to have flouted regulations more egregiously yet escapes with a lighter penalty.
Star Entertainment Group officials have released a statement confirming their intentions to collaborate with the government on NSW-related matters. If all goes well, a new tax hike could occur in August, given the timely creation of legislation for implementing the tax increases.
Wrapping Up
In summary, NSW Treasurer Daniel Mookhey announced a delay in the enforcement of the proposed tax hike, initially slated for July 2021, until August. The initial budget for the tax hikes was in place but lacked proper legislation and communication with the casinos.
The delay in the enforcement of the proposed tax hike on the casino-and-gambling industry, initially set for July, has been announced by NSW Treasurer Daniel Mookhey, with a potential implementation in August, contingent on the timely creation of legislation for the gambling-trends tax increases. Despite the financial strain on the state and Estimates of $364 million over three years from the Crown and Star casinos, the new tax rates seem to be awaiting official legislation before being implemented.
