Government moves to cut TAB tax

14/3/01
Racing and Gaming Minister Nick Griffiths said that the Government had delivered on a key election commitment, with Cabinet's approval of a reduction in TAB betting tax.
The Minister said the decision would boost funding to the racing industry in Western Australia.
"The new Labor Government will reduce the tax payable on pari-mutuel race betting turnover from 5 per cent to 4.5 per cent," Mr Griffiths said.
"The tax cut will be achieved by a monthly rebate commencing this month and will be payable once the TAB's February turnover had been finalised.
"Approximately $1.7 million will be returned to the racing industry during the remainder of the current racing year."
Mr Griffiths said the tax cuts will flow to the racing industry through the monthly TAB distribution process. Based on the TAB's current budgeted distribution, the cash injection will increase distributions to the racing industry by more than eight per cent.
He confirmed that the tax rebate was in addition to the special distribution of $1.5 million to country racing announced by the previous Government earlier this year.
The funds from the tax rebate will be paid to the racing codes in accordance with the ratios detailed in the profit distribution provisions of the Totalisator Agency Board Betting Act 1960. That is 55.26 per cent to thoroughbred racing, 29.76 per cent to harness racing and 14.98 per cent to greyhound racing.
The Government is directing the extra funding to the racing codes to increase stake money earnings, which will directly benefit owners, trainers, breeders, jockeys, reinspersons and stablehands.
"The Government wants a strong racing industry in Western Australia, particularly in country areas. This move should be an indication to the industry that we are serious in our commitment to make sure the industry is strong and continues to grow," Mr Griffiths said.
Media contact: Mike Groves 9321 1444