The government of the Australian state of New South Wales has clarified its intention to raise taxes on casinos, previously announced on December 17th. The proposed rates increase are ‘intended to apply to the duty rates payable by the Star and Crown casinos in Sydney,’ notes the state’s Treasury.
The new changes would encompass an increase on the non-rebate duty rate from 17.91 percent to 20.25 percent, while the current 2 percent Responsible Gambling Levy will remain in effect.
In addition, the rebate duty rate will rise from 10 percent to 12.5 percent, and the poker machine duty rate will rise to 20.91 percent, following a tiered schedule. This encompasses a 0 percent levy on monthly net revenues per machine below AU$2,666 ($1,778).
This increases to a 46.7 percent levy on monthly machine revenue between AU$2,666 and AU$6,667 ($4,447), which ups to 51.17 percent on the tier up to AU$12,500. For monthly per-machine revenues of AU$12,500 ($8,340) or more, a rate of 60.67 percent is set to be applied, if the legislation passes.
The overall increases in casino tax are expected to raise ‘an additional AU$364 million ($242.84 million) over three years’, notes the Treasury.
The authority notes that the rate changes ‘will apply on to the duty rates specified in the relevant Duty and Responsible Gambling Levy Agreement for each casino and will not otherwise amend the relevant agreements between the casinos and the NSW Government’. It also notes it will ‘undertake further consultation on the implementation’.
In response to the update, The Star has noted that it ‘understands the changes will require legislation to be passed by the NSW Parliament, unless the NSW and The Star agree to amend the duty agreement’.
It states it is ‘considering the proposed increased duty rates and the impact on its operations in NSW,’ noting that the state government ‘has stated that it will consult with The Star in relation to implementation’.