Australia: NSW government raises taxes for casinos with effect from July next year

Published on:

Casinos in the state of New South Wales (NSW) will begin to pay a higher tax on table game and poker machine winnings starting from July next year in accordance with a plan that is expected to raise more than $350 million in three years for the state.

In the wake of the COVID-19 pandemic, bushfires, and floods, the state’s fiscal sustainability would be supported by these measures, according to Treasurer Matt Kean. Over the following three years, the government anticipates that the proposal will raise around $364 million.

“It’s important that casinos pay their fair share of tax. These reformed tax rates will replace the existing regime under which casinos pay less tax on poker machines than hotels and clubs,” said Kean as quoted by Newcastle Herald.

“These changes will ensure that the casinos continue to make an appropriate contribution to the community and support the delivery of vital Government services,” he added.

According to Kean, the new poker machine rate will bring NSW on par with Victoria after the latter announced the recent changes to the casino taxation policies in their Budget this year. With a peak tax rate of 60.67% on casino poker machines, the government is likely to propose a tiered taxation structure that is modeled after the Victorian regime.

“Casinos provide employment and entertainment for thousands of people across the State and these changes will support the venues and ongoing contribution to the NSW economy,” said Kean.

The changes, which take effect amid instability in the state’s gambling industry, will be applied to both The Star Sydney and Crown Resorts’ Sydney casino at Barangaroo, which started operations this year following more than two years of regulatory issues.

Recently, Star casino in Sydney was also found violating several regulatory terms which prompted NSW casino regulators to suspend the license of the casino. The owner of Star casino was also hit with a record AUD 100 million fine.

The Australian Securities and Investments Commission (ASIC) also filed a lawsuit against 11 current and former Star directors and executives earlier this month for suspected money laundering.

Related