Casino tax rate deal exposed

Media release | 18 August 2021   

Independent Member for Nelson Meg Webb today released RTI documents which show Premier Peter Gutwein cut the new deal for the Federal Group casino pokies tax rate months before the 2021 State Election.

“I call on the Premier to come clean and declare the date on which the proposed new FGM casino tax rates were formally agreed between his Government and Federal Group,” Ms Webb said.

“RTI documents reveal this could have been as early as 23 December, 2020 – four months before the 1 May election this year.

“The Premier must explain why this important information was deliberately withheld from the Tasmanian electorate when the early election was called, despite the many calls at the time for the information to be released.”

Ms Webb said while the Premier did not lie, he withheld vital information prior and during the election campaign.

“By his omission, he misled, deceived and manipulated both the media and Tasmanian voters.”

Ms Webb said it was outrageous a select few within the Treasury and the gaming industry were in the know regarding the proposed new tax rates when Premier Gutwein took the state to the polls.

“But the State’s media and Tasmanian electorate were kept in the dark.

“Any attempt to now claim a ‘mandate’ for the proposed new FGM reforms is laughable and offensive.”

Independent economic modelling shows the dramatically discounted casino pokies tax rate equates to a quarter of billion dollar gift to Federal Group over the period of the licence.

“It looks like the Premier didn’t want to explain to the Tasmanian people – during an election – why he was giving away a $248 million gift to a major party donor instead of securing it for our hospitals and schools. 

“Polling this month shows only 3 per cent of Tasmanians agreed with a lower tax rate for casino pokies, while a total of 91% disagreed with it.   

“Now more than ever, Tasmanians need the Labor Party not to roll over and accept the FGM reforms, which would further perpetuate this anti-democratic betrayal of Tasmanians’ trust.”

New Federal Group Pokies Tax Deal Timeline

• 24 November 2020 – Legislative Council Budget Estimate Committee hearings – Premier Peter Gutwein stated:

“The negotiations that are underway with Federal Hotels regarding casino taxes and fees in Keno are still on foot.  I expect that we would conclude those, I would hope, before the end of the year.  Next year, legislation, once drafted, will go out for public consultation and then we will introduce it in the autumn session.”

• 16 March 2021 – Premier’s State of the State Address – silent on gaming reforms and future tax rates
• 26 March 2021 – Premier calls early election for 1 May.
• 29 March 2021 – Premier refuses to address direct media question asking what the new casino and pokies tax rates will be.

This information remained withheld from the Tasmanian electorate until 9 July release of the Future Gaming Markets Exposure Draft Bill.

• 17 August 2021 – Independent Member for Nelson Meg Webb receives RTI released correspondence between the Premier (dated 9 December, 2020) and the Federal Group (dated 23 December, 2020) confirming agreements on proposed new gambling and casino tax rates.

Read the RTI Release from Dept of Treasury and Finance to Meg Webb MLC, dated 17 August 2021

Read the Excerpt from ABC Mornings interview with the Premier, 29 March 2021 where Mr Gutwein refused to detail the new casino tax rates despite numerous requests to do so.

Proposed Tax Rates 

• Proposed casino poker machine tax rate = 13.91% (including CSL)
• Proposed hotel poker machine tax rate = 38.91% (including CSL)

See more on Meg’s pokies page