Tax rate of poker machine takings works its way into 2021 Tasmanian state election campaign

Matt Maloney | Advocate Newspaper | March 29, 2021 

Premier Peter Gutwein will not reveal whether the government has set a tax rate for poker machines in Tasmanian casinos ahead of legislation being released after the election.

Federal Group are charged 35 per cent tax on takings from poker machines and has argued the tax rate should be set at levels charged to casinos in other regional areas.

It has said tax rates for casino electronic gaming machines should be reduced and tax rates for poker machines in hotels and clubs should be increased to cover the reduction.

Hotels and clubs are also currently charged 35 per cent.

Federal have said the tax rate applied to them should be on par with that applied to casinos in Townsville and Cairns, which is 20 per cent of revenue, and Darwin, which is 15 per cent.

Tax rates for EGMs in casinos go as high as 38.9 per cent in New South Wales and to 31.6 per cent in Victoria.

South Australia charges a tax rate as low as 10.9 per cent and Western Australia charges 12.4 per cent.

Mr Gutwein on Monday said the Liberals policy on gaming reforms was dealt with in the 2018 election and would not speak on details of a revised tax rate.

Finance Minister Michael Ferguson said that level of detail would be seen in the first half of the year.

Labor leader Rebecca White said the Liberals had failed to deliver promised reform of the state’s gaming industry in its second term of government.

“There was draft legislation that was supposed to be released for us to debate and it hasn’t happened,” she said.

“My commitment has been, and remains that we want to see harm minimisation practices improved in Tasmania.”

Upper house member Meg Webb said either Mr Gutwein knew what the tax rate would be and was avoiding releasing it during the campaign or the government was still in negotiations with Federal Group on the matter.

She said if the latter was true, it would be unacceptable for the Liberal Party to accept any donations from the Federal Group during the campaign.

“I am calling on the government and Liberal Party to declare any donations it has received from Federal Group in the past 18 months,” Ms Webb said.

Read Meg’s Media Release on the poker machine tax rate