24/9/02
The State Government today announced proposed changes to the Casino (Burswood Island) Agreement Act 1985, intended to boost Burswood Resort Casino's competitiveness and contribution to the Western Australian economy.
The changes stem from Burswood submissions to the State Government and negotiations over the past 18 months. The agreement re-affirms the WA ban on any electronic gaming machines outside the casino and continues Burswood's exclusive position as the only casino in the State.
Racing and Gaming Minister Nick Griffiths said that key elements of the agreement included significant changes to casino taxes and new approval requirements for anyone seeking to own more than 10 per cent of Burswood shares.
Based on forward estimates for the next four years, the proposed casino tax changes will generate an additional $13million for the WA community. The new arrangements will mean the total casino tax paid in this period, will be about $200million.
Mr Griffiths said that the amendments - approved by Cabinet - included:
- a staged four per cent reduction (from the current 15 per cent) in the tax on revenue from international gambling, to better attract visitors from South-East Asia, and to bring rates more into line with other states;
- a new three-tiered taxation rate - from December 24, 2002 (the 17th anniversary of the original casino agreement) - that increases the tax rate for Burswood's gaming machines from 15 to 20 per cent over the next two years. By December 2006, the tax Burswood pays on table games (including Keno) will be increased incrementally to 18 per cent;
- the removal - from September 2003 - of the current requirement for the Minister's approval for any individual to hold more than 10 per cent of issued Burswood shares. Under the new agreement, any Burswood share ownership of more than 10 per cent will, instead, be subject to probity approval by the Gaming Commission of Western Australia; and
- the retention of the one per cent Burswood Park Board levy which goes towards the maintenance of public grounds surrounding the casino, and the golf course.
Mr Griffiths said that the Government noted Burswood's stated commitment to the Hopman Cup.
The proposed amendments to the agreement will require the support of the Parliament through a Bill to ratify the amendments.
The Minister said the changes were designed to bolster Burswood's competitiveness, to stimulate employment, to boost tourism and to increase State revenue, in an economic environment vastly different from when the casino was established in 1985.
"In the entertainment, hospitality and tourism sector, Burswood - which employs more than 3,000 people - generates significant tourist dollars for WA," Mr Griffiths said.
"These negotiated changes to the agreement are intended to make Burswood a far more competitive casino, particularly in the international marketplace.
"Burswood's international business - which accounts for about one third of its gaming revenue - is extremely competitive and volatile. The proposed lower international business tax rate will assist the casino to better generate a return commensurate with the risk of this business.
"The differential in casino taxation rates is also in recognition of the capital investment Burswood has made, and is continuing to make, in the development of the resort and on the Burswood Peninsula.
"The world has changed dramatically since 1985 and these changes set competitive and commercially realistic casino tax rates for the overall benefit of all Western Australians."
Minister's office: 9222 8950
