In Northern Territory, the local government has recently passed a new gaming tax. While it aims to benefit the local economy, gaming industry professionals are not pleased with having to give additional money away to local coffers without prior consultation. A report on ABC News notes that the NT budget introduced a new tax that seeks an additional 10% of revenue from gaming machines at local casinos.
It was part of the new budget, which was introduced on Tuesday. The new tax would take effect from July 1 of this year. Callum Mallett, acting manager at SkyCity Darwin, has criticised the NT government for failing to consult with the gaming industry. He believes that the NT government is taxing local casinos at a much higher rate than gambling venues in other states across the country.
"We are surprised and disappointed about the introduction of the levy, and how it's been communicated to us," he says. "Other casinos across Australia generally pay a one-to-two, or maybe 3 per cent community benefit levy, so 10 percent is certainly out of line with other casinos across Australia."
The new tax for local casinos in Northern Territory would cost SkyCity up to $6 million every year, which will have a significant impact on the casino’s finances. The government will be spending the money to fund various community projects. While SkyCity Darwin is pleased that the revenue will be used in a productive manner, the casino operator is still displeased that it was not consulted prior to the decision being made.
Mallett continues: "We are working with the Government now, and will continue over the next few months, to consider what other options there are to make sure our business remains viable”.
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