Gambling Tax Concessions - Question Without Notice
My question is directed to the Treasurer. The most recent Liquor and Gaming NSW data released last week shows that the people of New South Wales lost a record $9.3 billion on pokies last year, which is an 8 per cent increase on the year before. Shockingly, the number of poker machines also rose to 88,019, the highest number recorded since 2021 and an increase of 180 machines in the fourth quarter of last year alone. Given that pokies losses continue to increase under the Treasurer's Government, is it not time to increase the tax on what clubs in New South Wales pay on the billions lost by the people of the State to pokies?
The Hon. DANIEL MOOKHEY (Treasurer) (11:15): I thank Ms Cate Faehrmann for her question and her ongoing interest in this area. It is fair to say that the member has been consistent on this issue from the moment she came to the House. The member asked me similar questions at budget estimates, at which time, it is fair to say, those figures had not come out. But they since have. I understand that those figures are going to catalyse a debate about what is the appropriate attitude towards problem gambling and how we ensure that clubs, pubs and others that obey the law are able to respectfully operate their trade. As well, there are questions to do with taxation policies. I say to the member that of course the Government is working through the report that was given to it by the independent panel. We are doing that relatively—
Ms Cate Faehrmann: Slowly.
The Hon. DANIEL MOOKHEY: —methodically. I accept there is a view amongst some that it is going slowly. That is the view of the member as well, as I just heard. I allow other people to make such characterisations. Ultimately, when it comes to questions of taxation policy, the principal instrument by which the Government makes decisions is its budget. We will be making decisions about this, and other matters to do with various taxes, at budget time as well. That is not to suggest that we are heading in one particular direction on this. Rather, I am simply saying this because the member asked whether the time has come. I think members will subjectively draw a different conclusion to that question, depending on their view of the issue. But as we get to all questions to do with tax policy—be it on gambling taxes, payroll taxes, stamp duty or the like—the Government's policy instrument is its budget.
Ms CATE FAEHRMANN (11:17): It is fair to say we are now in a different world to the one when gambling tax concessions were first brought in for clubs. Clubs do not pay tax on gambling profits under $1 million. The maximum tax rate is 28.4 per cent, which is for clubs that make profits of over $20 million—and that is from people who lose on the poker machines. Five per cent of clubs make up 50 per cent of the tax benefit of that. They make $485 million from pokies losses. Meanwhile, pubs have to pay 50 per cent tax on any losses over $5 million. So it is time that the Government fronts up to clubs to make them pay their fair share of tax.