The new NSW government has asked Treasury to urgently reassess...

The new NSW government has asked Treasury to urgently reassess plans for a $120 million tax hike on the state’s casinos as it flags a willingness to reduce the impost on Star Entertainment and Crown Resorts.Daniel Mookhey, the new Treasurer, said the proposed tax increase put in place by the previous Coalition government “wasn’t properly formed”, adding that there was not enough consultation with the gaming companies.Mr Mookhey said he would meet “with the workers at the casino to hear their concerns first hand” Kate Geraghty“I have asked the Treasury to begin the due diligence that is required to properly assess the impact of that policy, especially when it comes to jobs,” Mr Mookhey told reporters in Sydney on Monday.There was “no change to the government’s policy”, he added, although preliminary briefings had made it clear a proper process had not been followed ahead of the tax rise being introduced.Star has already written its Sydney casino down by $988 million, partly due to the proposed tax increase. Brokers expect the company’s profits to be about $100 million lower if NSW proceeds with the proposal from July 1.RELATED QUOTESSGRThe Star Entertainment Group$1.345 1.13%1 year1 dayApr 22Oct 22Apr 231.0002.0003.000Updated: Apr 17, 2023 – 4.02pm. Data is 20 mins delayed.View SGR related articles Star raised $800 million and negotiated concessions from lenders – owed a net $1.1 billion – to exceed its debt covenants until June 2025 as part of a plan to recover from the damning findings of a NSW inquiry into money laundering and other criminal conduct at its casino, and the tax hike.“I want to be confident about what impacts the policy will have ... once we have undertaken consultation and proper policy development, we, of course, will have more to say about that,” Mr Mookhey said on Monday.The United Workers Union had written to Mr Mookhey and Gaming Minister David Harris to warn the increase risked “the viability of the current operations” at Star and some 4500 workers.Mr Mookhey noted the letter on Monday, and said he would meet “with the workers at the casino to hear their concerns first hand”. However, he added that balancing the state’s budget would mean some tax hike was likely.“NSW is facing around $7 billion of additional hard to avoid pressures over the next four years. And by difficult to avoid pressures, I mean cost pressures that have not been accounted for, budget overruns and programs that were funded on a temporary basis,” Mr Mookhey told reporters.Last year, Star chief executive Robbie Cooke said he was “not sure” how the government had modelled the tax increase. On Monday, a Star spokesman said: “We welcome the considered approach of the new government and would appreciate any opportunity to consult at the appropriate time.”New due diligence process a priority for TreasuryThe renewed due diligence process will be a priority for Treasury officials, sources separately said, with just over 10 weeks before the proposed tax increase is scheduled to take effect.The review will be a relief for Star after inquiries last year found it had misled regulators on money laundering, engaged in “inherently deceptive and unethical” conduct, and knowingly allowed criminals to do business at its casinos in NSW and Queensland.There is a further $150 million provisioned away to combat civil proceedings from anti-money laundering watchdog AUSTRAC, which has accused the company of allowing high-risk VIP patrons to churn billions of dollars of dirty cash through its gaming rooms and breaking the law “innumerable times”.