The Victorian government has recently announced its plans to increase poker machine taxes. While the decision was opposed by industry professionals, politicians seemed to stand behind the increase. Now, MP Geoff Shaw is speaking out against the tax hike in hopes that he can stop pokie clubs from paying more for their games.
The pokie tax increase would require clubs in medium and high tax brackets to pay an additional 4.2% on their poker machines. Once the tax hike is implemented in April, the majority of clubs in these tax brackets will be paying between 34% and 36% in taxes. There are some locations that will be paying 45%. Clubs have already spoken out against the increase, but their concerns were dismissed.
Now, Mr Shaw has stepped up to speak on behalf of clubs in his electorate. He has stated that the new tax increase could force some his local clubs out of business, which would do more harm than good in the community. Local community groups and charities rely on income from pokie clubs, and closures would certainly compromise this funding.
“Some of the mid-tier type of clubs and sporting clubs will be affected by this and that could mean they may have to close down,” he said. Still, local politicians are reluctant to pull their support the hike. The increase in poker machine taxes would bring in an additional $287 million to government coffers. The money would be spent on schools, healthcare and public transportation across the state of Victoria.
There are two very compelling arguments for and against the new poker machine tax increase in Victoria. On one hand, pokie clubs will lose profits. On the other, the local community will benefit from more funding for schools and hospitals. There is likely going to be a fierce debate on the topic, and we will keep you updated with further developments.