How will tax hike affect 4500 casino jobs
The union representing thousands of workers at Sydney’s Star casino has sought an urgent meeting with NSW Treasurer Daniel Mookhey over growing fears a gaming tax increase due to take effect in less than two months will trigger the loss of hundreds of jobs.United Workers Union director Dario Mujkic has written to Mookhey to insist the proposed tax could cost the casino $100 million a year and ultimately penalise Star’s 4500-strong workforce of gaming, cleaning, hospitality and security staff.
The new treasurer will be forced to balance the state’s tax revenue objectives with the public interest impact on jobs at the casino as he examines the controversial policy announced by Liberal predecessor Matt Kean.The decision to slap Star with a higher tax followed a 2021 Herald investigation that triggered explosive inquiries into the group’s NSW and Queensland operations.Star has threatened to conduct an “urgent review” of its Sydney operations unless the tax hike is changed.Confidential briefings from NSW Treasury officials to the government last week backed claims by Star that NSW tax rates would be higher than Victoria’s and confirmed that no consultation took place before the policy was announced.
"The announced increase in rates was intended to align [NSW and Victoria],” the Treasury advice stated. “However ... The Star has argued, correctly, that NSW’s effective rates will be higher because Victoria provides casino operators with credit towards state taxation for GST paid on non-rebate and gaming revenue.”The advice gives Labor, which said before the March election it would not amend the tax, a potential opportunity to scale it back or delay its introduction.The policy proposes to tax casino gaming profits at a top rate of 60.67 per cent, raising it from the current 31.57 per cent. It was budgeted by the former government to start in July.Announcing the move in December, then-treasurer Kean said the tax grab would direct funding to disaster victims and bring NSW into line with Victoria’s casino tax arrangements.While Kean’s press release at the time made a reference to Victoria, the actual policy description contained in half-yearly budget review makes no mention of aligning the states.Mujkic wrote to Mookhey and Gaming Minister David Harris on Friday to call for a meeting and seek assurance that jobs would be protected.In the letter seen by the Herald, Mujkic said the union was concerned about the viability of Star’s Sydney operations if the tax increase was introduced.Labour accounts for 60 to 70 per cent of Star’s cost base. The casino’s operating profits for the first half of the current financial year were $30 million.Mujkic said the union had met several times with Star since the announcement in December, with the casino forecasting potential annual losses of $100 million.“Our union believes in progressive taxation, but I don’t think this proposal was ever about tax justice, it was really about having someone – Star – to attack politically in the context of the gambling reform debate,” he said.“Star has been fined by regulators left, right and centre, and they are going through a very thorough remediation program. That is entirely appropriate because of misconduct and poor management. But I think this tax increase was additional to that.”Star Entertainment Group chief executive officer Robbie Cooke said no business could sustain the level of tax increase announced by the former government.“We were blindsided by this proposed tax. There was no consultation. It was dropped on us right before the Christmas break. Was due process followed?” he said. Cooke added that attempts to consult the former government were unsuccessful.
Mookhey declined to comment but has previously said a Labor government would struggle to unwind the policy because it was factored into the budget by the former government.The new treasurer will announce on Monday that he will hand down the government’s first full budget in September, which is common practice for first-term governments following an election. However, an economic statement to the parliament will be given in June.
- Forums
- ASX - By Stock
- News: SGR Star Entertainment Says Star Sydney CEO Scott Wharton Has Resigned
How will tax hike affect 4500 casino jobs The union representing...
-
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SGR (ASX) to my watchlist
|
|||||
Last
45.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $1.290B |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 35000 | 48.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
40.0¢ | 39544 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 35000 | 0.480 |
2 | 7 | 0.475 |
2 | 4940 | 0.470 |
1 | 94368 | 0.465 |
4 | 77150 | 0.460 |
Price($) | Vol. | No. |
---|---|---|
0.400 | 39544 | 4 |
0.420 | 41122 | 1 |
0.425 | 203516 | 2 |
0.430 | 22884 | 2 |
0.435 | 60395 | 2 |
Last trade - 16.21pm 30/08/2024 (20 minute delay) ? |
Featured News
SGR (ASX) Chart |
Day chart unavailable
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online