Star Entertainment, one of the biggest operators of land-based casinos in Australia, has announced that it reached an agreement with the New South Wales government to reduce the proposed casino tax hike.
In December 2022 the New South Wales government announced that it intended to raise the casino tax in the state starting from 1 July 2023. Star Entertainment, which operates the Star Sydney casino, criticized the proposal and said it would not be sustainable.
The tax increases included non-rebated duty rate rising from 17.91% to 20.25% and rebate duty rate from 10.00% to 12.50%. Moreover, the poker machine duty rate was supposed to change from a flat 20.91% rate to a tiered system, taking taxes all the way up to 60.67% for machines with over 12,000 dollars in monthly revenue.
The New South Wales Treasurer agreed to meet Star Entertainment representatives in order to discuss the new tax rates. The meetings did take place and now the casino operator announced that an in-principle agreement has been reached to reduce the proposed tax hike. However, the agreement has not yet been formalized so it does not produce any legal effects yet.
The proposed rates for rebate play and non-rebate play on table games remained unchanged following the discussion with Star Entertainment, as their main aim was to diminish the rise of taxes on poker machines.