South Australia’s racing industry is poised for a significant prize money increase, thanks to the state government’s decision to amplify the Point of Consumption (POC) tax returns.
The Labor Government, led by Peter Malinauskas, will elevate the POC tax revenue allocated to the racing industry from 10% to 20% starting next month.
This adjustment is projected to bolster funding by nearly $28 million over the coming four years.
South Australian Treasurer Stephen Mullighan underlined the government’s cognizance of the need to invigorate the local industry to keep it viable, pertinent, and competitive on the national front.
“The racing industry employs thousands of people across our state and makes a significant contribution to the SA economy,” Mullighan said.
“Without these extra funds our state’s industry risks falling further behind the other states’ industries, risking losing trainers, horses and workers in the future.”
“This investment also provides the industry with greater certainty in the years to come.”
This alteration in the POC tax structure, which follows extensive lobbying by Racing SA and other stakeholders, will see a surge in funding by an estimated $8.2 million in 2023-24 and around $6.5 million annually from 2024-25 onward.
Although Racing SA had urged the government to channel 30% of POC tax revenue back to the industry, the increase was warmly received.
In a joint statement, SA’s three racing codes expressed their appreciation for the government’s robust support and looked forward to demonstrating that this confidence would yield substantial returns for the state, thus bolstering their argument for additional investments in the future.