The Victorian Racing Industry (VRI), welcomes the Victorian Government’s proposed changes to the Victorian Point of Consumption Tax (POCT) arrangements which will result in an increase to the VRI’s share of ongoing funding derived from the POCT collected, providing important long-term certainty for the VRI.
The Victorian Government has today announced that it will introduce legislation to increase the POCT on wagering by Victorian residents from 10% to 15% of net wagering revenue from 1 July 2024.
This increase will bring Victoria’s POCT into line with New South Wales, Western Australia, South Australia and Tasmania at 15%, whilst Queensland stands at 20%.
The VRI will retain the majority of the planned POCT increase from 1 July 2024, with the proceeds from POCT collected on all wagering and betting activity from Victorian residents to be split evenly between Government and VRI (currently 7.5% each).
The increased industry funding from the POCT will be a key component of a new industry funding framework to replace lapsing industry funding in connection with the State Wagering and Betting Licence and associated historical joint venture industry funding arrangements which are due to expire in August 2024.
The new funding arrangements will better reflect the evolving wagering market and continue to provide the industry with ongoing autonomous funding derived from the industry, linked to wagering and betting activity on VRI products.
The VRI welcomes the Victorian Government’s ongoing commitment to the preservation of a growing and viable racing industry and Victoria’s position as the pre-eminent racing and events jurisdiction in the country.
The confirmation of this important funding to industry enables the VRI to continue to support more than 35,000 Victorian jobs, invest in animal and participant welfare, and provide world class racing and training infrastructure.
The VRI is one of Victoria’s most significant industries and makes a substantial contribution to jobs, communities and the state economy, delivering $4.7 billion in economic value each year – around half of this in regional Victoria.
Quotes attributable to Racing Victoria (RV) Chairman, Brian Kruger
“We welcome the Victorian Government’s plan to provide the VRI with an increased share of POCT receipts from July 2024. This is money that we help generate coming back to the VRI to secure its sustainability and provide funding certainty into the future.
“The VRI supports over 35,000 Victorian jobs and delivers more than $4.7 billion in economic activity annually to Victoria. We are a major Victorian industry, one that not only delivers jobs, but provides entertainment and enjoyment to so many people.
“With the State Wagering and Betting Licence due for renewal in August 2024, and the end of the historical joint venture industry funding arrangements, it is critical for Victorian thoroughbred racing and the broader VRI that we have long-term certainty around industry funding.
“Funding certainty helps drive important decisions around investments in events, programs, and infrastructure right across the state. It drives jobs and helps maintain vital commitments to protect the safety and welfare of animals and participants.
“Victoria is the pre-eminent racing jurisdiction in Australia, and we want to keep it that way by maintaining our globally recognised events and ensuring we offer an attractive racing program to drive investment in Victoria.”
Quotes attributable to Greyhound Racing Victoria (GRV) Chair, Peita Duncan
“GRV welcomes the Victorian Government’s announcement of continued support for the VRI through an increased share of POCT receipts and a new framework to replace lapsing industry funding from July 2024.
“This outcome will provide continued certainty for the greyhound racing industry in Victoria and enhances our ability to plan with confidence for future investments in infrastructure replacement and renewal, greyhound welfare, rehoming and safety, as well as programs to support participants and clubs in continuing the valuable investment and contribution they make to communities across the state.”
Quotes attributable to Harness Racing Victoria (HRV) Chairman, Dale Monteith
“HRV welcomes the Victorian Government’s announcement of continued support through an increased POCT. The increase along with a newly structured funding framework will provide certainty beyond July 2024 for the racing industry.
“This funding allows for future sustainability planning and investment in our 4500 participants, 446 race meets, 28 clubs and 18 training facilities providing significant benefits to our communities across regional Victoria.”