Liberals gaming and racing spokesperson Mark Parton wants point of consumption tax reinvested in Canberra racing

Opposition gaming and racing spokesperson Mark Parton will table a motion in the Legislative Assembly on Wednesday calling for a "reasonable portion" of the point of consumption tax to be returned to racing.

The tax was increased from 15 to 20 per cent last month, but there has been no indication if the racing industry will benefit. The government's budget papers revealed the tax revenue is expected to jump from $16m in the last financial year to more than $20m in 2024-25.

The Canberra Racing Club is concerned it may have a negative impact on the industry, which is fighting fires on several fronts as some trainers prepare to move their stables interstate.

Parton will point to examples in Queensland and Tasmania, where 80 per cent of the point of consumption tax is returned to racing, as the reason why Canberra's industry deserves more.

"Recently the [tax] rate in the ACT was retrospectively increased from 15 to 20 per cent on July 1 that will generate in excess of $20 million a year," Parton said.

"With the increase in the [tax], the Labor-Greens government becomes the highest-taxing jurisdiction in Australia, while at the same time returning the least of those profits back to the codes.

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"... By returning a portion of this tax back to our racing clubs, we can give them certainty of a long-term revenue stream."

The point of consumption tax has been in place since 2019 and has raised $43 million for the government.

But the ACT Greens called for an end to public funding of the horse racing industry in Canberra in June, voicing their disapproval of the government's $40m deal with the Canberra Racing Club and Harness Racing Club.

The deal was signed despite the push from the Greens, but the stance and the point of consumption tax hike have put many on edge about the industry's future in the capital.

Several high-profile trainers are relocating their stables to areas in NSW, in part due to the rising cost of insurance in the capital.

Matthew Dale, Luke Pepper, Joseph Ible and Doug Gorrel are among those who have left, or will leave to set up new training bases.

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