Page 4614 - Week 15 - Tuesday, 6 December 1994
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Madam Speaker, I will be brief. I have already foreshadowed these amendments. The Chief Minister spoke of a window of opportunity. I do not know whether there is a window of opportunity or not; but there is an opportunity for us to share with the casino in this additional business, if the business eventuates. The Chief Minister referred to a profit and loss projection which shows that, of an approximate $20m expected turnover from this junket trade, the Government can expect just over $2m by way of tax, and the casino itself can expect slightly less than $3m by way of profit. What that indicates to me is that about 76 per cent of the proceeds would be consumed before the ACT Government or the casino made one cent. You only have to get a couple of high rollers who make a big profit and somebody is going to lose out.
Nevertheless, we are prepared to give this measure a run. My amendments simply say that on 1 January 1997, unless something is done to the contrary, the tax rate that applies to junket business shall be the rate determined for general tax. In other words, the casino will pay 20 per cent on this business as from 1 January 1997. Of course, I would imagine that in the latter half of 1996 the Government and the casino will both be reviewing their options. If it is agreed that it has been good business, that it has been beneficial to both, and if there has been a reasonable return to the ACT revenues, then I would expect to see an amendment that would remove that sunset clause from the law.
On the other hand, if things have not gone as well as the casino expects and if, whether they have made a profit or not, we have had virtually no revenues or a loss of revenue, then I would expect the Government to insist that that concessional tax rate disappear. I urge members to support my proposal. It seems to me to be a reasonable and prudent thing to do in the interests of the ACT taxpayer.
MS SZUTY (9.34): I indicate to the Assembly that I will be supporting the amendments as proposed by Mr Kaine. The Chief Minister indicated that she would review the provisions at the end of 1995 in any case. I think all members of this Assembly would urge her to do that, knowing that further down the track the sunset clause provision, as I believe it will be accepted by this Assembly, will come into effect unless there has been a change of mind in the meantime. Although the Chief Minister's point about the review happening in December 1995 is a valid one, I think there is still room to support Mr Kaine's amendments and the sunset clause that he is proposing.
Amendments agreed to.
Bill, as a whole, as amended, agreed to.
Bill, as amended, agreed to.
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