❓ Dr. Buti questions the Treasurer on how the TAB sale secures the racing industry's financial future and the consultation process. The Treasurer details the consultation phases, the creation of an infrastructure fund, revenue-sharing, and a point-of-consumption tax.
AnsweredQoN 718Legislative Assembly
QuestionView source ↗
TAB —
PRIVATISATION
718. Dr A.D. BUTI to the Treasurer:
I refer to the historic reform
package for Western Australian racing, which will provide long-term support for
the �industry.
(1) Can the
Treasurer advise the house how the sale of the TAB will secure the future
financial viability of the industry?
(2) Can he
outline the process the government has taken to reach the decision to sell the
TAB, including the extensive consultation undertaken with the industry?
PRIVATISATION
718. Dr A.D. BUTI to the Treasurer:
I refer to the historic reform
package for Western Australian racing, which will provide long-term support for
the �industry.
(1) Can the
Treasurer advise the house how the sale of the TAB will secure the future
financial viability of the industry?
(2) Can he
outline the process the government has taken to reach the decision to sell the
TAB, including the extensive consultation undertaken with the industry?
AnswerView source ↗
I thank the member for Armadale for
that question. I am keen to answer that.
(1)–(2) All
members know that this issue has bedevilled the public debate for five years, I
suspect—since 2013 or 2014. It has been an issue of some complexity
because of technological change in the sector and the rise of foreign-owned
online bookmakers—often registered in Gibraltar—that license
their way through the Northern Territory and make profits in various
jurisdictions but pay no tax, which is why all states are now moving down the
path of a point-of-consumption tax. I want to highlight a couple of points. One
is the consultation phase. I want to more broadly acknowledge the sector and
the various groups involved in what has been a period of very good
consultation. That was something we committed to. There were two phases to the
consultation. The first phase was direct consultation with industry,
particularly through the Racing and Wagering Western Australia board, and
meetings with the thoroughbred, harness and greyhound racing code
subcommittees, which indicated in writing that they were very happy with the
process as it had been transparent and constructive. The second phase saw the
release of a discussion paper that was open to public comment. During this
phase, 12 public stakeholder industry forums were held, with three in the
regions, and 107 submissions in response to the public discussion paper were
received. If they are not now, those 107 submissions will be online today, so
all people can look at the feedback we received, which highlights
overwhelmingly that there is support now for the sale of the TAB.
An
important issue is financial viability. I have already made the point about
having those who make profits in Western Australia pay tax, which a point-of-consumption
tax will do. It is clear, and I think all members acknowledge this, that
customer preferences are shifting away from TAB strengths and larger players,
which currently do not pay tax in Western Australia, are now dominating the
market.
I think industry will find three
components of the reforms very favourable. The first is the creation of an infrastructure
fund, which will be funded by 35 per cent of the net proceeds of the sale of
the TAB, which highlights that it will be in everybody's interest to
maximise the sale price. The second is the provision of more secure ongoing
funding. We had a lot of debate and discussion with the sector about this issue
and what that would look like. In the end, the revenue-sharing component of the
point-of-consumption tax revenue will be 30 per cent, which is the most
generous in the nation. That will do more than equalise and keep the sector no
worse off; it will be a financial benefit to the sector. It is more generous
than Victoria and New South Wales, which have revenue-sharing arrangements. I think
we have seen problems in the states that have not chosen to go down the path of
a revenue-sharing arrangement. The third is a simpler and fairer system. Having
those international corporate bookmakers, which are very large organisations
with very large balance sheets but which do not pay tax in Western Australia,
now pay tax will effectively fund our local industry. I think it is a good
package. A few moving parts will require a couple of pieces of legislation, but
I think it will set the industry up for the future with fiscal sustainability
and the capacity to compete with other competitors in this space.
I want to acknowledge the member for
Belmont in particular, who has been very good in this space as it is a keen
part of her electorate. It is likewise with the member for Forrestfield and Hon
Samantha Rowe. It is not generally done, but I also acknowledge the
conversations I have had with the member for South Perth. He is a man who knows
a lot about the sector. Although his advice to me on whom I should put money on
has been found wanting, I have enjoyed those conversations and they were a good
part of me formulating my thoughts around this.
that question. I am keen to answer that.
(1)–(2) All
members know that this issue has bedevilled the public debate for five years, I
suspect—since 2013 or 2014. It has been an issue of some complexity
because of technological change in the sector and the rise of foreign-owned
online bookmakers—often registered in Gibraltar—that license
their way through the Northern Territory and make profits in various
jurisdictions but pay no tax, which is why all states are now moving down the
path of a point-of-consumption tax. I want to highlight a couple of points. One
is the consultation phase. I want to more broadly acknowledge the sector and
the various groups involved in what has been a period of very good
consultation. That was something we committed to. There were two phases to the
consultation. The first phase was direct consultation with industry,
particularly through the Racing and Wagering Western Australia board, and
meetings with the thoroughbred, harness and greyhound racing code
subcommittees, which indicated in writing that they were very happy with the
process as it had been transparent and constructive. The second phase saw the
release of a discussion paper that was open to public comment. During this
phase, 12 public stakeholder industry forums were held, with three in the
regions, and 107 submissions in response to the public discussion paper were
received. If they are not now, those 107 submissions will be online today, so
all people can look at the feedback we received, which highlights
overwhelmingly that there is support now for the sale of the TAB.
An
important issue is financial viability. I have already made the point about
having those who make profits in Western Australia pay tax, which a point-of-consumption
tax will do. It is clear, and I think all members acknowledge this, that
customer preferences are shifting away from TAB strengths and larger players,
which currently do not pay tax in Western Australia, are now dominating the
market.
I think industry will find three
components of the reforms very favourable. The first is the creation of an infrastructure
fund, which will be funded by 35 per cent of the net proceeds of the sale of
the TAB, which highlights that it will be in everybody's interest to
maximise the sale price. The second is the provision of more secure ongoing
funding. We had a lot of debate and discussion with the sector about this issue
and what that would look like. In the end, the revenue-sharing component of the
point-of-consumption tax revenue will be 30 per cent, which is the most
generous in the nation. That will do more than equalise and keep the sector no
worse off; it will be a financial benefit to the sector. It is more generous
than Victoria and New South Wales, which have revenue-sharing arrangements. I think
we have seen problems in the states that have not chosen to go down the path of
a revenue-sharing arrangement. The third is a simpler and fairer system. Having
those international corporate bookmakers, which are very large organisations
with very large balance sheets but which do not pay tax in Western Australia,
now pay tax will effectively fund our local industry. I think it is a good
package. A few moving parts will require a couple of pieces of legislation, but
I think it will set the industry up for the future with fiscal sustainability
and the capacity to compete with other competitors in this space.
I want to acknowledge the member for
Belmont in particular, who has been very good in this space as it is a keen
part of her electorate. It is likewise with the member for Forrestfield and Hon
Samantha Rowe. It is not generally done, but I also acknowledge the
conversations I have had with the member for South Perth. He is a man who knows
a lot about the sector. Although his advice to me on whom I should put money on
has been found wanting, I have enjoyed those conversations and they were a good
part of me formulating my thoughts around this.
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