1. Racing families are hurting.
South Australia’s Point of Consumption tax

2. An important industry
Thoroughbred racing in SA at a glance

3. Racing has been growing
Before the introduction of the POC tax, thoroughbred racing in SA was doing well – with revenue, prizemoney and infrastructure all consistently increasing.

4. …but is now going backwards
However, with the introduction of South Australia’s 15% Point of Consumption tax, the racing industry has gone backwards.

5. What happened?
In response to the growth of online gambling, State governments around Australia introduced a Point of Consumption tax – with SA being the equal highest.

6. What happened?
In retaliation to SA’s 15% tax rate, the major gambling companies stopped promoting South Australian events which in turn slashed industry revenue.
PROMOTION
BETTING
REVENUE

7. INFRASTRUCTURE SPENDING
What happened?
With revenue plunging by 9%, Thoroughbred Racing unfortunately had no choice but the cut expenditure in areas vital to the future of the sport.
$1.5 MILLION
PRIZEMONEY
$4 MILLION
INFRASTRUCTURE SPENDING
For our industry, these cuts are drastic.
Real people are really hurting.

8. SA – no reinvestment
To make matters worse, while SA is going backwards, the other States are going from strength to strength.
The racing industries interstate receive substantial financial support – either a percentage of the Point of Consumption tax or direct investment.

9. SA – no reinvestment

10. Average prizemoney by State
SA - prizemoney
Prizemoney is crucial to the racing industry because prizemoney pays wages.
Therefore, cuts in prizemoney = cuts in jobs.
With such low prizemoney, why would you race or train in South Australia?
Average prizemoney by State

11. The impact
With South Australia’s POC tax rate at 15% and ZERO re-investment, the situation is becoming unsustainable.
• Because prizemoney is being hit, wages are being hit
• Because infrastructure funding is being hit, communities are missing out – particularly in regional areas
• Jobs are being lost and investments withheld
• Businesses are under serious threat
Why is the State Government hurting racing families across South Australia with underfunding and a high and uncompetitive tax that is costing jobs and threatening livelihoods?

12. What must be done
The new Liberal State Government didn’t create this problem – but only it can fix things.
South Australia’s POC tax must be reduced from 15% to 10% to bring us more in line with NSW (10%) and Victoria (8%)
The majority of the revenue from the POC tax must be reinvested in the racing industry for prizemoney, infrastructure and general support.
Only then can SA’s thoroughbred racing industry compete sustainably on its own terms and protect its own future.

13. All we are asking for is a level playing field.