Australia’s Star Entertainment Group said in a Tuesday morning ASX filing that it has settled long-running disputes with the Commissioner of Taxation in relation to the GST (Good and Services Tax) and withholding tax treatment of historical payments made by the group to junket operators.
It also revealed that the Commissioner has refunded AU$33 million of the AU$88 million it previously paid of the disputed amount, and as such will take a charge of AU$55 million for the year ended 30 June 2026.
The tax in question relates to payments made to junket operators between October 2013 and August 2017 in respect of GST treatment of rebates, and between July 2014 to June 2020 in respect of the appropriate method for calculating withholding tax.
The Australian Tax Office (ATO) had accused Star of underpaying GST on rebates and commissions paid to junket operators, amounting to a claim of AU$158 million, and also launched a separate dispute relating to withholding tax on junket rebate payments, adding a further claim of AU$8.4 million.
Star, which ceased dealings with junket operators in October 2020, argued that the ATO’s interpretation of the tax law was incorrect and commenced proceedings in the Federal Court in 2023. The two parties had, however, engaged in mediation during proceedings.
Resolution of the matter represents another important milestone for Star as it looks to move past the regulatory and compliance issues that have burdened it in recent years and focus on regaining suitability to operate its casinos in NSW and Queensland following the acquisition last year by Bally’s Corp and Investment Holdings Pty Ltd of a controlling stake in the company.
Star recently opted not to seek a determination of its license status given the change of control but has submitted to the NSW Independent Casino Commission (NICC) a submission outlining its pathway to suitability.
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