Clubs Tax Hike On Labor’s Mind?
NSW Shadow Minister for Hospitality George Souris claims a future tax hike for the State’s registered clubs is definitely on the NSW Labor Government’s mind.
Mr Souris said it was interesting that as negotiations for the State’s final Budget before the 2011 election get underway - due to be brought down in June 2010 - the topic of gaming tax is raised again - by former Premier Bob Carr.
“More tax from registered clubs is never far from a Labor Government’s mind,” Mr Souris said. “Mr Carr tried it in 1998, had to back down, then actually implemented it in the 2003 Budget. This provided for a five-year run of gaming machine tax hike supposedly to inject additional funds into the State’s hospitals.”
The Liberal and National parties, in the lead-up to the 2007 election, signed an MoU with the Club Industry and committed to freezing the tax take at 2005 levels for the subsequent term of Government. The Morris Iemma-led Government followed with a similar agreement.
“This position has had successive Labor Government Treasurers on the warpath for clubs ever since,” Mr Souris added. “The contrived mini-Budget of November 2008 was a lost opportunity for Labor to hammer home its tax grab on community based registered clubs.”
Mr Souris said the myth of Mr Carr’s supposed “hypothecation” of the extra tax being earmarked for additional hospital funding (above what would have been) has been proven to be as empty as a Labor hollow log. Mr Carr even had special brochures printed in thousands to peddle the hypothecation line, he added.
“Labor has already collected about $712 million above 2004 rates [a total of $3.02 billion] through the implementation progressively increased tax rates over the succeeding five years.” Mr Souris said. “To be whingeing about a further $500 million that might have been shows just how greedy Labor is with clubs, and just how impervious to the community good that clubs contribute Labor remains.”
Mr Souris said it would be interesting to see what Labor has in store for NSW clubs in its taxation policy - a position that Premier Nathan Rees is now forced to declare.
“It will not be good enough for the Premier to say ‘wait for the Budget of June 2010’, Labor’s position on clubs tax must be committed,” he said. “It will be impossible for clubs to plan future services to their community, enhancement of facilities and employment levels in the climate of uncertainty that has been created.
“Clubs have never been in a more perilous position. Mergers and closures have taken toll of 100 clubs since September 1, 2004 - the date of the first tax hike. 9,000 jobs have gone from clubs since that time. The impact of smoking laws, the credit squeeze and the ever-increasing punitive actions of the Rees Government in liquor and gaming policy has had clubs reeling.
“Labor lost the clubs heartland through the awful tax campaigns of the past - a position that is never far from the surface today with the Liberals and Nationals gaining a greater and greater presence in clubland.”
Mr Souris said Labor lost the clubs some time ago and that the Liberals and Nationals were looking forward to negotiating a new MoU with clubs and the Liberals and Nationals through the latter part of 2010 to cover all aspects of club governance.
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