Liberal MLA Mark Parton says ACT government trying to 'starve racing to death'

The ACT government upped the PoC tax, or betting operations tax, from 20 to 25 per cent as part of Tuesday's budget to make it the highest in Australia.

It will see the expected government revenue jump from $22.3 million this financial year to a predicted $32 million next year as a result, and will yield Andrew Barr's government $165.2 million across the next five years.

They hiked the tax without consulting the racing industry.

Parton said the decision will hurt it financially as a result.

In other states, the tax hike could have been a positive in terms of revenue with every other racing body, like Racing NSW across the border, receiving between 30-80 per cent of revenue raised from the PoC tax.

But in Canberra the government keeps all of it.

Canberra Racing does receive $40 million in government funding as part of their five-year memorandum of understanding with the government.

"This decision displays the Barr government's total disregard for the racing codes," Parton told The Canberra Times.

"The budget announcement came without any consultation either to the ACT racing or harness racing clubs or the bookmakers.

"Corporate bookmakers are likely to price this increased cost into their Canberra markets, which will ultimately lead to less revenue for the sport in Canberra, already starved for funding by this Labor/Greens government.

"It certainly appears the Barr government is trying to starve the racing codes to death."

Responsible Wagering Australia, an advocacy group for bookmakers like bet365 and Pointsbet, called for the increase to be reversed.

RWA chief executive Kai Cantwell said the ACT government had been involved in discussions with federal, state and territory governments to come up with a unified approach to gambling taxation, but hadn't mentioned their plans.

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"This tax would have serious implications for the ACT racing sector, which currently contributes $52.9 million to the local economy each year and supports around 200 jobs," Cantwell said.

"The industry already contributes $20.4 million in tax to the ACT government each year and is now being slogged with another tax with little or no return to the industries that are contributing significantly to the ACT economy.

"This hit to the industry could mean a real reduction in revenue received by ACT racing putting the sustainability of the industry at risk.

"Responsible Wagering Australia calls on the ACT government to reverse this decision and work with us to support the sustainability of the ACT's racing and sporting industries."

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