News HomeMost Read News
NSW Treasurer Delays Tax Hikes
After the incident with several casino brands in Australia, a new tax hike had been proposed by the government. This hike would generate $364 million over a period of 3 years from the Crown and the Star alone.
The new hike was supposed to start on the first of July but has been delayed by the treasurer, Daniel Mookhey. The new rates were budgeted, but they have yet to be legislated. Furthermore, no one had liaised with the casinos about these new hikes. These are the reasons for the delay stated by Mookhey.
New Rates Budgeted, but Not Legislated
The Treasurer is looking to play it by the rules and make the situation acceptable for all parties involved. Both the Star and the Crown lost their licenses due to illegal activities and are now forced to change the way they operate while paying huge fines.
The delay had a positive impact on the shares of Star Entertainment as it made their price rise significantly. Mr. Livingstone, a gambling researcher from Monash University, has stated that this delay is pretty strange considering the financial situation of the state. Namely, the state is indebted to its creditors.
The previous government had to make certain sacrifices due to the pandemic and natural disasters. This added an extra $33 billion expenditure to the already shaky budget. Mookhey explained that if the government continued spending, then the Reserve Bank would have no other choice but to put up interest rates and start collecting on the benefits.
Tim Costello, an anti-gambling campaigner, has stated that he’s disappointed by the treasurer’s decision. He also cited that double standards are at play since the Crown casino in Melbourne is getting a $250 million fine although the Star Casino disregarded the regulations heinously.
The Star Entertainment Group officials have released a statement in which they agree to continue to collaborate with the government on NSW on the matter. A new tax hike might come around in August if the government manages to create the proper legislature for enacting the tax hikes.
Conclusion
Daniel Mookhey, the NSW Treasurer, has stated that the proposed tax hike that was supposed to be enacted in July has been delayed until August. Despite the dire state of the budget and the backlash from various parties, the previous government had only budgeted the hikes without the proper legislature and communication with the casinos.
