The Australian Trade Union representing workers at The Star Sydney is seeking a meeting with the newly appointed NSW state Treasurer amid concerns a proposed increase in casino tax rates could impact thousands of jobs.
According to a report by The Sydney Morning Herald, United Workers Union boss Dario Mujkic has written to NSW Treasurer Daniel Mookhey claiming the tax hike would cost star around US$100 million a year and ultimately cost the jobs of some of The Star Sydney’s 4,500 workforce.
Star warned in February that the future earnings capacity of The Star Sydney could be seriously harmed should the NSW state government proceed with plans to substantially increase casino duty rates starting in FY24. The company said it it anticipates a non-cash impairment charge in relation to its NSW business in the range of AU$400 million to AU$1.6 billion (US$277 million to US$1.12 billion), with the high end of this range based on full implementation of the proposed NSW casino duty rate. The low end of the range assumes no change in the NSW casino duty rate, Star said at the time.
If introduced, the new tax would see the current flat rate of 32% paid on Star’s EGMs climb to a top rate of more than 60%.
The SMH also reports that confidential briefings from NSW Treasury officials to the government last week found that the proposed tax hike was announced without any consultation and would also place the NSW rate above that of Victoria, home to Crown Melbourne.
“The announced increase in rates was intended to align [NSW and Victoria],” the Treasury advice states.
“However … The Star has argued, correctly, that NSW’s effective rates will be higher because Victoria provides casino operators with credit towards state taxation for GST paid on non-rebate and gaming revenue.”
According to The SMH, the advice potentially gives the government an out by reducing or delaying the new casino tax.
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