The Victorian government recently announced plans to increase poker machine taxes by nearly 5%. Why the move aims to benefit the community, there are concerns that local sports organizations will lose out as a result of the tax increase.
"In these challenging economic times the Coalition government must maintain a disciplined budget to ensure we can continue to invest in the critical infrastructure and services that Victorian families and businesses deserve," says Victorian Treasurer Michael O'Brien.
It was originally thought that the tax would apply to larger gaming venues, but it was recently revealed that only local pokie clubs would be required to pay more while casino tax rates would stay the same. Clubs are known for donating a significant portion of their profits to local community groups. Last year, clubs across Brimbank donated upwards of $1 million to local clubs, taking a relatively small portion as profits.
As such, a tax increase would further reduce their profit margins, leading the clubs to cut sports funding. Neill Murray, Chief Executive of Community Clubs of Victoria, states that the tax increase is likely to force sports clubs to cut funding for local programs. Maintenance schedules for sports grounds and hours for sports coaches are likely to be reduced.
Other risks include job losses in the market, which will have an overall negative impact on the community. Mr O’Brien states that the increased levy will bring in an additional $50 million for the government. While it is crucial for the local government to increase its coffers, local community members wonder whether the extra money could come from other sources rather than taking funding away from sports clubs.
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