Sunday 15. May, 2016

Tax Rebate Will Attract High Rollers and Boost Crown Perth

The Australian government, in its budget which was unveiled on Thursday, set aside almost $18 million over three years as a rebate for Crown Perth to help attract high roller gamblers. The aim is for these high rollers to ultimately generate additional revenue.

“They were meeting competition from Singapore and Macau, and we also only did nothing more than match what they did at the casino in Melbourne and in Sydney,” stated Treasurer Mike Nahan.

The budget indicates a drop in Government revenue – an expected $25.6 billion in 2016-17, down from $31.2 billion in 2014-15. In addition, projected casino tax revenue is almost half of what was expected – $67 million in place of the estimated $127 million it expected to receive two budgets ago.

The $17.8 million VIP Professional Punters Tax Rebate has been described by Dr Nahan as “reorientation of the tax imposed on high rollers.”

The aim of the changes if for Crown Perth to become more competitive in both local and international markets in order to attract high rollers who will generate additional revenue.

“The objective is for Burswood to go out and attract more of them to pay more tax,” Dr Nahan added.

This is not the first time that Crown Perth has been offered a tax break. In 2014-15, the government reduced its international commission business tax rate from 11 percent to 8 percent, resulting in a 44 percent increase in VIP revenue.

This latest tax break has come at a time when high roller revenue at Crown Perth has been increasing. From July to December 2015, high roller revenue was up 28 percent to $118 million, but the government is hoping to stimulate even more revenue growth in the coming year.


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