Department of the Legislative Assembly, Northern Territory Government

Financial Support and Taxes of the Racing Industry

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WRITTEN QUESTIONS
11th Assembly


16/04/2010

147. Financial Support and Taxes of the Racing Industry

Mr Styles to MINISTER for Racing, Gaming and Licensing

QUESTION

      1. In relation to racing for the current budget year up to 1 April 2010, how much revenue was collected from racing taxes.

      2. In relation to the horse racing component of the portfolio, for the current budget year up to 1 April 20102; for each of the established turf clubs and other regional horse racing clubs (eg Adelaide River, Brunette Downs, Timber Creek) in the Northern Territory:
          (a) how much in government funding was supplied to each organisation;

          (b) what was the breakdown in terms of capital works funding and operational funding;

          (c) what requirements were established with Thoroughbred Racing NT to ensure funding of racing outside of Darwin and Alice Springs; and

          (d) what financial and other support was provided by government to racehorse trainers.
        3. For the greyhound racing component of the portfolio, for the current budget year up to 1 April 2010:
            (a) how much in government funding was supplied;

            (b) what was the breakdown in terms of capital works funding and operational funding; and

            (c) what work has been done to expand the potential for greyhound racing to other centres.

        4. In relation to gaming for the current budget year up to 1 April 2010:

            (a) how much revenue was collected from gaming taxes;

            (b) how much was collected under the Community Benefit Levy; and
            (c) what is the aggregate number of gaming machines in the Northern Territory within Category 1 and Category 2 licensed premises and in total; and

            (d) How many gaming machines were transferred between licensees since 1 January 2009.

        5. For each of January 2009, February 2009, March 2009 and January 2010, February 2010, March 2010:
            (a) how much revenue was collected in taxes from gaming machines in Category 1 licensed premises; and

            (b) how much revenue was collected in taxes from gaming machines in Category 2 licensed premises.
          6. In relation to licensed premises, since 2 January 2010, until 1 April 2010:
              (a) how many inspections of licensed properties have been undertaken, broken down by Darwin and suburbs, Palmerston, Alice Springs and other NT;

              (b) how many breaches of the Tobacco Control Act have been reported by licensing inspectors;

              (c) how many improvement notices or fines have been issued;

              (d) how much was expended on the advertising campaign related to the introduction of indoor smoking bans in pubs and clubs;

              (e) how many licensed premises have approved designated outdoor smoking areas; and

              (f) how many licensed premises are awaiting recognition of outdoor smoking areas.

          7. In relation to liquor licensing:

              (a) how many new liquor licenses were issued across the Northern Territory in 2009, further broken down by Darwin and suburbs, Palmerston, Alice Springs and, The rest of the NT; and

              (b) As of 1 April 2010, how many liquor license applications are currently in progress.

          8. In relation to other licensing issues:
              (a) as of 1 April 2010, how many security and background checks were outstanding; and

              (b) what is the estimated turnover rate per month in check.
          ____________________________________

        ANSWER


        Answered on 01/06/2010

        Page 5 of 5
        1In relation to racing for the current budget year up to 1 April 2010, how much revenue was collected from racing taxes?

          The wagering tax (eg NT TAB) to 31 March 2009 is $4.91 million, and bookmakers tax is $6.69 million.

          Please note from 1 January 2010, the Northern Territory Government replaced the Northern Territory’s current sports bookmaker turnover tax with a tax based on gross wagering profits. The NT Government has capped the tax each sports bookmaker has to pay to a maximum of $250,000, which is subject to annual indexation, based on the Darwin Consumer Price Index.


        2 In relation to the horse racing component of the portfolio, for the current budget year up to 1 April 2010; for each of the established turf clubs and other regional horse racing clubs (e.g. Adelaide River, Brunette Downs, Timber Creek) in the Northern Territory:

          (a) How much in government funding was supplied to each organisation?
                Nil. As per the funding agreement all payments are made to Thoroughbred Racing NT Incorporated (TRNT), the principal club for the NT. TRNT comprises members from Darwin, Alice Springs as well as country representatives and is responsible for the distribution of funding from the NT Government. As a collective group, it is in the best position to make decisions in the best interest of NT race clubs and racing in general.
          (b)What was the breakdown in terms of capital works funding and operational funding?
                In June 2009, TRNT received $350,000 capital funding and

                $9.718 million operational funding for the 2009-10 financial year. In addition, $10,000 each has been allocated to ABC Amateur and Harts Range race clubs to assist in the running of its festivals.

          (c) What requirements were established with Thoroughbred Racing NT to ensure funding of racing outside of Darwin and Alice Springs?
                As part of the funding agreement, TRNT has established a distribution formula, which ensures funding for Darwin, Alice Springs and all regional centres.
          (d) What financial and other support was provided by government to racehorse trainers?
                Nil.

        3 For the greyhound racing component of the portfolio, for the current budget year up to 1 April 2010:


          (a) How much in government funding was supplied?
                $474,975.
          (b)What was the breakdown in terms of capital works funding and operational funding?
                $429,975 operational and $45,000 capital works funding.
          (c) What work has been done to expand the potential for greyhound racing to other centres?
                Although the greyhound industry is an integral part of racing in the Northern Territory and enjoyed by many, the industry is relatively small in nature. The NT Government has not received any interest from regional centres in relation to the establishment of additional tracks. It would also be prudent not to establish other centres until the viability of the industry’s current greyhound racing establishment is assured.
        4 In relation to gaming for the current budget year up to 1 April 2010:

          (a) How much revenue was collected from gaming taxes?
                In the current budget year up to 1 April 2010, the following gaming taxes have been collected:
                Casino$8,736,221.60
                Community Gaming$15,483,723.76
                Lotteries$11,528,693.22
                Total$35,748,638.58

          (b) How much was collected under the Community Benefit Levy?
                In the current budget year up to 1 April 2010, $1,881,189 has been received from the Community Benefit Levy.
          (c) What is the aggregate number of gaming machines in the Northern Territory within Category 1 and Category 2 licensed premises and in total?
                The aggregate number of gaming machines in the NT within each Category is:
        Category 1 (Hotels) – 432
        Category 2 (Clubs) – 758
                The total number of gaming machines is 1190.
          (d) How many gaming machines were transferred between licensees since 1 January 2009?
                Under the Gaming Machine Act, Gaming Licences are not transferable. However, under the Liquor Act,during the reporting period

                1 January 2009 to 24 April 2010, there were seven liquor licensed premises that transferred its liquor licences to new owners. The new owners were each required to apply for a new Gaming Licence should they wish to continue to operate the gaming machines on their premises. 70 gaming machines fell within these provisions and came to be operated by new licensees.

        5 For each of January 2009, February 2009, March 2009 and January 2010, February 2010, March 2010:

          (a)How much revenue was collected in taxes from gaming machines in Category 1 licensed premises?
                Tax received from gaming machines in Category 1 (Hotels) licensed premises are as follows:
                January 2009$404,636
                February 2009$388,661
                March 2009$454,871
                January 2010$313,072
                February 2010$291,847
                March 2010$348,686

          (b) How much revenue was collected in taxes from gaming machines in Category 2 licensed premises?
                Tax received from gaming machines in Category 2 (Clubs) licensed premises is as follows:

        January 2009$1,290,584
        February 2009$1,138,798
        March 2009$1,312,792
        January 2010$930,747
        February 2010$852,007
        March 2010$933,150

        6 In relation to licensed premises, since 2 January 2010, until 1 April 2010:


          (a) How many inspections of licensed properties have been undertaken, broken down by Darwin and suburbs, Palmerston, Alice Springs and other NT?
                Inspections conducted on licensed premises, from 2 January 2010 to 1 April 2010 are as follows:
        Darwin and suburbs – 119
        Palmerston – 8
        Alice Springs – 175
        Other NT – 233
          (b) How many breaches of the Tobacco Control Act have been reported by licensing inspectors?
                Breaches of the Tobacco Control Act reported are as follows:
        Darwin and suburbs – 5
        Palmerston – 1
        Alice Springs – 2
        Other NT – 7
          (c) How many improvement notices or fines have been issued?
                Improvement Notices are not issued at present. Due to the recent changes to the Tobacco legislation, the Department of Justice (DoJ) policy has been to conduct an interim educative approach with the licensees. Letters of caution have been issued in response to minor breaches. No serious offences requiring prosecution have been detected.
          (d) How much was expended on the advertising campaign related to the introduction of indoor smoking bans in pubs and clubs?
                This is not the responsibility of the Minister for Racing, Gaming and Licensing.
          (e) How many licensed premises have approved designated outdoor smoking areas?
                Neither the Licensing, Regulation and Alcohol Strategy division of DoJ, nor the NT Licensing Commission (the Commission) approve designated smoking areas. The Commission does approve material alterations to licensed premises in the context of changes to the liquor licence areas of these venues.

          (f) How many licensed premises are awaiting recognition of outdoor smoking areas?
                Please refer to ‘6e’ above.
        7 In relation to liquor licensing:

          (a) How many new liquor licenses were issued across the Northern Territory in 2009, further broken down by Darwin and suburbs, Palmerston, Alice Springs and, the rest of the NT?
                New liquor licences issued in 2009 are as follows:
        Darwin and suburbs – 9
        Palmerston – 1
        Alice Springs – 1
        Other NT – 4
          (b) As of 1 April 2010, how many liquor license applications are currently in progress?
                There are eight liquor licence applications currently in progress as of 1 April 2010.
        8 In relation to other licensing issues:

          (a) As of 1 April 2010, how many security and background checks were outstanding?
                This information is not collected.
          (b) What is the estimated turnover rate per month in check?
                This information is not collected.
        Last updated: 04 Aug 2016