ACT government's point-of-consumption tax could consume Canberra racing industry

He's worried if the ACT government doesn't start returning a share of the point-of-consumption tax then the industry will be forced to move interstate rather than continue in the capital.

The ACT government has collected about $20 million in revenue since the start of 2019, when they introduced the tax of 15 per cent on all bets made.

It's a tax that's been introduced throughout Australia, but unlike elsewhere a portion of the revenue raised hasn't been returned to the racing industry - where a large proportion of the money has been wagered.

In NSW, the racing industry gets 20 per cent of the tax and it's been a large reason behind the prizemoney in country NSW overtaking that in Canberra.

Currently, a standard race in country NSW has total prizemoney of $22,000 - $2000 more than an equivalent race in Canberra.

Over the past 10 years that has changed from $14,000 in the ACT and $10,000 in country NSW - meaning across the border it has grown by 120 per cent, but it's only gone up in Canberra by 43 per cent.

That's what's concerned Olive - one of the top trainers in the region who had a runner in the Melbourne Cup three years ago - having seen those changes firsthand.

Alistair Coe's Liberal party has pledged to give Canberra Racing a cut of the tax, while Andrew Barr's Labor party has said it won't.

It's set to become an election issue in the lead-up to polling day on October 17.

"I think it's extremely important. It's probably as important that if it doesn't happen for whoever takes government at the next election it could spell the end of the racing industry in Canberra," Olive said.

"We're just going to get left behind. We go to Cootamundra, Leeton, Narrandera, Parkes, Forbes and race for more money than we do in the capital city of Australia.

"The only reason for that is the government doesn't give us any of the point-of-consumption tax to invest in the industry in the ACT."

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Olive's quick to point out they're not after taxpayers' money - just a percentage of the revenue they help the government make every year.

Barr's government has been happy to pocket the millions raised, but in almost two years hasn't shared a single cent - stating in a recent survey doing so would take funding away from "health, education, community and emergency services".

Olive said he might be forced to relocate interstate if the widening gap in prizemoney between Canberra and NSW continued.

It would mean his 12 staff, who are part of an industry that provides $54.5 million towards the ACT economy, would either need to follow him interstate or lose their jobs.

Olive said the flow-on effect would go beyond just those that work at the racetrack - with feed merchants, veterinaries and other industries also impacted.

"It's not taxpayers money. The money is actually coming from the product we put on," he said.

"It's not coming from people's taxes. It's a point-of-consumption tax on the bookmakers - basically a fee on the bookmakers for using our product.

"Every other state in Australia the government invests some of that back in the industry and the ACT's the only state that doesn't do that.

"If the club doesn't keep up the prizemoney levels they won't race in Canberra."