Page 2309 - Week 07 - Wednesday, 3 August 2022
(c) the POCT rate in the ACT was recently increased from 15 percent to 20 percent on 1 July which should increase the revenue to government to approximately $23 million;
(d) the ACT POCT is levied on ‘race and other sport betting taxes’ via online bets placed by a person located in the ACT on many sports and other events, including golf, rugby, motorcross and horseracing, and it is levied on those sports all around Australia, which means that the ACT POCT is not primarily levied on bets placed on ACT horseracing and, in fact, ACT horseracing comprises a relatively small proportion of overall wagering;
(e) unlike other Australian states and territories, the ACT does not return a portion of POCT to racing codes in their jurisdiction, determining instead to support the racing clubs through direct Budget funding arrangements via a clearly articulated Memorandum of Understanding (MOU) setting out requirements for humane treatment of horses, and workplace health and safety for industry workers;
(f) racing clubs in Canberra will receive $8 million each year, indexed over the next five years under an MOU with the ACT Government;
(g) the ACT has increased the POCT rate broadly in line with NSW and Queensland, with other jurisdictions considering their own increases; and
(h) the ACT Government collected $69 million in total gambling taxes in 2020-21 across lotteries, gambling machines, casino taxes, race and other sports betting and other gambling taxes and is forecast to collect more than $77 million in 2024-25, which is transferred to General Revenue and then used by Government to help fund the expansion of health services, construction of schools, new ambulances and hiring of additional paramedics among other essential Government services funded in the 2022-23 Budget; and
(2) calls on the Government to:
(a) oversee compliance with the newly-agreed five-year MOU by the racing clubs to ensure a safe, humane and sustainable racing industry in the ACT;
(b) publicly report on the economic impact of the racing industry and the breakdown of POCT revenue; and
(c) continue to work with the Canberra Racing Club to appropriately facilitate a diversified and sustainable revenue stream over the medium term.”.
MS CLAY (Ginninderra) (5.00): The ACT Greens oppose public funding for the horseracing industry, and we will be supporting Minister Steel’s amendment. We are talking today about Mr Parton’s motion on the point of consumption tax, and there is a lot of confusion about how that tax works. I am pleased that Minister Steel’s amendment has corrected some of that confusion.
That point of consumption tax is levied on race and other sports betting. That is not just ACT horseracing; it is golf, rugby, motocross and other sports. It is also levied on