State of Play : State of Play - Issue 3
32 The Andrews Labor Government made an announcement in August 2017 that taxes will increase for venues with high-earning gaming machines. This change is expected to come into effect in August 2022 when the current gaming machine licences expire -- providing venues with the certainty and time needed to put contingencies and plans in place. From August 2022, a formula based on a weighted average of a venue's gaming machine revenue over the past four financial years will be used to calculate the price for gaming machine entitlements. There will also be a minimum price applied to club and hotel entitlements. New entrants to the market will pay a price that is calculated using the average gaming machine revenue at a venue of similar size, type and location. In an announcement made in August via the Department of Justice's website, pubs, clubs and hotels were advised of a new tax bracket that will be introduced for venues earning on average between $6667 and $12,500 per machine, per month while a higher tax rate will apply to the top bracket (over $12,500 per machine, per month on average). High-performing clubs will see a reduction in their tax concession based on a sliding scale. The increased revenue these changes provide will go directly into the state's Hospitals and Charities Fund, the Mental Health Fund, alcohol and drug treatment services and the Victorian Responsible Gambling Fund. In a media release, the Minister for Gaming and Liquor Regulation Marlene Kairouz said that the decision was based on "ensuring venues that earn the most from pokies pay the most back to the Victorian community" . "The price and tax rates that we have announced are fairer -- and will secure important funding for health and community projects across Victoria," Kairouz said. These changes follow the Labor Government's decision to freeze the total number of gaming machines in Victoria and the number of machines allowed in a single venue for the next 25 years. | BUSINESS AS USUAL | "TGS IS COMMITTED TO CREATING AND PROVIDING VALUE FOR OUR VENUE PARTNERS, TO ENSURE WE CONTINUE TO OUTPERFORM THE VICTORIAN MARKET. WE LOOK FORWARD TO SHARING OUR LONG TERM STRATEGY WITH THE INDUSTRY AT LARGE IN THE COMING MONTHS." ADAM FLOYD, TABCORP GAMING SOLUTIONS, VICTORIA STATE MANAGER 2022 -- A FAIRER PRICING SYSTEM FOR VICTORIAN GAMING VENUES Venues that earn the most from pokies will pay more tax under changes that will come into e ect in August 2022. State of Play breaks down what these changes entail.
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State of Play - Issue 4