Independent MP Kristie Johnston has demanded Tasmania’s government restore casino tax rates to 25 per cent, saying a $10m annual discount is unjustified as gambling revenue has grown, the Mercury reports
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Pressure mounts to axe casino tax holiday costing state millions
Independent MP Kristie Johnston has demanded Tasmania’s government restore casino tax rates to 25 per cent, saying a $10m annual discount is unjustified as gambling revenue has grown.
The state government should restore casino tax rates which were lowered to compensate for poker machine reforms because gambling revenue had not dropped as expected, an independent MP says.
Independent Member for Clark Kristie Johnston said casino revenue from gaming machines did not fall under the new arrangements, so the discount wasn’t necessary.
The concession costs the state budget around $10m a year.
“It’s beyond time to end the tax discount given to help Tasmania’s casinos cope with change,” Ms Johnston said.
“Federal Group casinos paid a 25 per cent general tax to the state before their monopoly ended in 2023, part of changes to the gaming market.
“We know former Treasurer Michael Ferguson in a 2024 letter said the casinos had not lost money after the monopoly ended but had in fact made more money.
“I asked Treasurer Abetz if given Tasmania’s financial crisis, job cuts and people doing it tough that the prosperous casinos could pay their fair share by restoring their general tax rate to 25 per cent.
“Not a new tax, just the end of a discount rate and the restoration of the 25 per cent rate they’ve had a holiday on now for years.
Mr Abetz said he hadn’t considered increasing the tax back to its previous level.
“It’s not on our agenda,” Mr Abetz said.
The state received $45.8m in casino taxes and licence fees in 2021/22. It is projected to receive $10.9m in 2026/27.
The Liberals secretly negotiated “acceptable” casino tax rates with Federal Group before the 2021 state election as it devised is Future Gaming Market Reforms.
Then Premier Gutwein sent Federal Group a five-page letter spelling out the proposed tax rates, licence fees and other arrangements the government was proposing under poker machine reforms.
Federal Group wrote back saying in part: “we will accept the arrangements outlined in the letter”.
Tax rates for casino poker machines fell from 25.88 per cent to 13.91 per cent of turnover in 2023 after the passage of legislative reforms.
The public was only told about the deal after the election.
Electronic gaming machines in the state’s casinos turned over $81m last financial year.