All three codes of Queensland racing are set to be put under the microscope with a review into their sustainability to be headed by former Australian Turf Club chairman Matthew McGrath.
Racing Minister Tim Mander announced the first stage of the review process on Saturday, with a discussion paper released which is asking participants and stakeholders to contribute.
It is the first major step the Crisafulli Government has made into racing reform since they took power last October.
With Queensland’s budgetary challenges plus a focus on funding for the 2032 Olympics, there have been questions about the sustainability of the future structure of racing in the state. Premier David Crisafulli had promised a review when campaigning in opposition ahead of last year’s election.
“We committed to a review into all aspects of racing, and this discussion paper is the first step,” Mander said.
“The racing industry is a major contributor to the state’s economy, an important employer for many hard-working Queenslanders and is at the heart of communities right across Queensland.
“We want to ensure the long-term financial stability, viability, and integrity of racing in the state.”
Mander announced a relatively short consultation period with industry ahead of the review. It will be open for input until March 30, 2025.
“I encourage all stakeholders and participants to have their say and play an active role in this process to ensure a prosperous future for the industry, for the participants, for the employees and volunteers and for the communities right across the state who simply love racing,” he said.
McGrath, who was chairman of the ATC from 2018 until 2022 and is also a director with the Cronulla Sharks, had been linked to the key role in charge of the review for some time.
“The Racing Review brings many elements together and will look at social, financial, and employment impacts and the welfare of those who compete on the track and vitally for the horses and greyhounds,” McGrath said.
“The Review Team aims to be at as many racetracks as possible, meeting industry participants, punters, race goers and the teams of people who manage and work in the Clubs.
“The recommendations will be pragmatic and progressive to ensure the best future for Queensland racing.”
Bren O’Brien
Queensland integrity system as well as racing infrastructure and the role of regional and rural racing are expected to be among the key focusses of the review.
The current funding agreement which sees 80 per cent of revenue derived from a 20 per cent Point Of Consumption Tax passed thorough to racing, is also expected to be examined.
Among those to welcome the review was Responsible Wagering Australia, the representative body for most of Australia’s major wagering companies.
“The need for this review should serve as a warning to other jurisdictions about the consequences of excessive taxation and regulation,” RWA CEO Kai Cantwell said.
“A financially sustainable and well-regulated racing industry is critical to ensuring its long-term viability and the significant economic and employment benefits it delivers to Queenslanders.”
Kantwell said that the high pass through rate of POCT to the industry meant it was more vulnerable to wagering downturns.
“There is a clear tipping point where a POCT rate that is too high creates a tax environment that is not viable for wagering providers to operate in, leading to significant drops in wagering revenue, tax revenues and ultimately returns to the racing industry,” he said.
“We have seen the ACT Government’s decision to increase its POCT to 20 per cent in 2022 and again to 25 per cent in 2023, with zero industry consultation, lead to a decline in overall tax revenue – the exact opposite intent of the policy.
“RWA supports evidence-based policy decisions that are fit for purpose and balance consumer protection with industry sustainability.”
