Tax windfall For NSW Country Pubs

By Annette Shailer

More than a thousand small NSW pubs are set to benefit from poker machine cuts announced in yesterday’s NSW Budget.

Under the changes which will take effect from July, publicans will pay no tax on poker machine profits if they generate less than $200,000 each year.

Currently publicans pay 15 percent tax on poker machine profits of $200,000 or less per year.

The AHA (NSW) welcomed the tax certainty, promoting it as a win for small business and a common sense approach by the Keneally Government.
AHA (NSW) president, Scott Leach, said the tax changes would provide some welcome relief for at least 1100 hotels.

“The Keneally Government has acted to sustain the community assets that are rural and regional pubs. The new tax regime gives relief to our smallest members at a critical time,” he said.

“In a time of economic uncertainty both globally and at the coal face of retail in NSW; the Keneally Government is to be applauded for creating economic certainty for the hotel sector with the new tax rate scheme. This allows investment to flow into the sector creating both jobs and additional taxation revenue for NSW.”

Broken Hill’s Mulga Hill Tavern publican, Dean Trengove, said that country pubs are often the heart of the town, providing employment, entertainment and financial support for the local sporting team.

“Working with NSW Health, my hotel cooks 1000 meals each week for Broken Hill residents requiring care. This tax deal will help sustain this service and the hotel – an important community asset,” he said.

“This is a great result for all NSW hotels, their 55,000 NSW staff and the 16,000 sporting teams and community groups they support.”

NSW Shadow Treasurer, Mike Baird, said that the credibility of the Keneally Labor Government’s 2010-11 Budget has been called into question for failing its own financial targets.

“This lack of financial responsibility is further seen in the State Labor Government’s inability to control expenses, which have averaged eight per cent in the last four years and exceeded forecasts,” he said.

“Last year alone expense growth blew out to 9.6 per cent from the forecast 7.6 per cent, which has cost NSW taxpayers almost $1 billion.”

 

[Wed 09/06/2010 02:50:36]