Casino Pokies Tax Rate Revelations

Media release – Megg Webb MLC, 8 August 2021

Casino tax rate deal exposed

Independent Member for Nelson Meg Webb today released RTI documents which show Premier Peter Gutwein cut the new deal for the Federal Group casino pokies tax rate months before the 2021 State Election.

“I call on the Premier to come clean and declare the date on which the proposed new FGM casino tax rates were formally agreed between his Government and Federal Group,” Ms Webb said.

“RTI documents reveal this could have been as early as 23 December, 2020 – four months before the 1 May election this year.

“The Premier must explain why this important information was deliberately withheld from the Tasmanian electorate when the early election was called, despite the many calls at the time for the information to be released.”

Ms Webb said while the Premier did not lie, he withheld vital information prior and during the election campaign.

“By his omission, he misled, deceived and manipulated both the media and Tasmanian voters.”

Ms Webb said it was outrageous a select few within the Treasury and the gaming industry were in the know regarding the proposed new tax rates when Premier Gutwein took the state to the polls.

“But the State’s media and Tasmanian electorate were kept in the dark.

“Any attempt to now claim a ‘mandate’ for the proposed new FGM reforms is laughable and offensive.”

Independent economic modelling shows the dramatically discounted casino pokies tax rate equates to a quarter of billion dollar gift to Federal Group over the period of the licence.

“It looks like the Premier didn’t want to explain to the Tasmanian people – during an election – why he was giving away a $248 million gift to a major party donor instead of securing it for our hospitals and schools.

“Polling this month shows only 3 per cent of Tasmanians agreed with a lower tax rate for casino pokies, while a total of 91% disagreed with it.

“Now more than ever, Tasmanians need the Labor Party not to roll over and accept the FGM reforms, which would further perpetuate this anti-democratic betrayal of Tasmanians’ trust.”

New Federal Group Pokies Tax Deal Timeline

• 24 November 2020 – Legislative Council Budget Estimate Committee hearings – Premier Peter Gutwein stated:

“The negotiations that are underway with Federal Hotels regarding casino taxes and fees in Keno are still on foot.  I expect that we would conclude those, I would hope, before the end of the year.  Next year, legislation, once drafted, will go out for public consultation and then we will introduce it in the autumn session.”

• 16 March 2021 – Premier’s State of the State Address – silent on gaming reforms and future tax rates
• 26 March 2021 – Premier calls early election for 1 May.
• 29 March 2021 – Premier refuses to address direct media question asking what the new casino and pokies tax rates will be.

This information remained withheld from the Tasmanian electorate until 9 July release of the Future Gaming Markets Exposure Draft Bill.

• 17 August 2021 – Independent Member for Nelson Meg Webb receives RTI released correspondence between the Premier (dated 9 December, 2020) and the Federal Group (dated 23 December, 2020) confirming agreements on proposed new gambling and casino tax rates.

Read the RTI Release from Dept of Treasury and Finance to Meg Webb MLC, dated 17 August 2021

Read the Excerpt from ABC Mornings interview with the Premier, 29 March 2021 where Mr Gutwein refused to detail the new casino tax rates despite numerous requests to do so.

Proposed Tax Rates 

• Proposed casino poker machine tax rate = 13.91% (including CSL)
• Proposed hotel poker machine tax rate = 38.91% (including CSL)

See more on Meg’s pokies page

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Media release – Cassy O’Connor MP | Greens Leader and Treasury spokesperson, 18 August 2021

Liberals’ Election Pokies Lies Exposed

The cat is now well and truly out of the bag, with Right to Information documents obtained by Meg Webb MLC confirming the Gutwein Government negotiated the casino pokies tax rate last December, months before they went to an election and deflected persistent questions over the tax rate.

All the way through the campaign, the Greens and others were asking the Liberals to tell Tasmanians what new tax rate they had negotiated with their major donor, the Federal Group.

This was an important questions for every Tasmanian who has the right to quality health, education, housing and community services.

The Premier was dishonest with Tasmanians, so was his Finance Minister, Michael Ferguson. They knew what they’d negotiated with the Federal Group and refused to tell voters because they knew it would go down like stink.

Now we see through the lies.

The State Budget has been robbed of almost $250 million over the next twenty years as a result of the secret deal the Liberals negotiated with their major donor.

The shamelessness of the Liberals’ dishonesty over this is breathtaking.

They allowed the gambling industry to bankroll their 2018 election win, handed over an extra $4million to the Tasmanian Hospitality Association straight after the election, then negotiated a tax windfall with the Federal Group in secret, and lied about it before going to the polls again.

How do they sleep at night?

In October, Parliament is expected to debate amendments to the Gambling Control Act 1993 that will, if passed, give effect to a policy that has no end date for pokies in pubs and clubs – a policy that will claim lives and livelihoods for generations.

The Greens will vote against this corrupt legislation.

What will Labor do?

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Media release – Independent Member for Clark, Andrew Wilkie, 18 August 2021

GOVERNMENT HANDED DONOR A $250M CHRISTMAS GIFT & KEPT VOTERS IN THE DARK

Independent Member for Clark, Andrew Wilkie, said the revelations today about secret dealings between the State Government and Federal Group about its poker machine tax cut confirmed an alarming corruption of governance.

“The Government promised a $250m taxpayer-funded gift last Christmas to a political donor,” Mr Wilkie said. “This is legalised corruption and even more so when you remember that very same donor had been allowed to write its own poker machine policy

“Seems the only people kept out of the loop were the community who went to the polls this year deliberately kept in the dark.

“The Government does not have a mandate to bankroll the poker machine industry and needs to put this to the voters.

“A referendum is the only honest way to determine the future of poker machines in Tasmania. This should be our decision, not the industry that profits from them or the politicians who profit from the industry.

“The community decided whether Tasmania should have the country’s first casino more than 50 years ago. So why can’t we decide whether we even want poker machines in the first place, and if we do who should operate them and how much they should be taxed.”