Vic: Gov t lifts pokies levy but ignores Harvey recommendation

AAP General News (Australia)
04-18-2001
Vic: Gov t lifts pokies levy but ignores Harvey recommendation

By Trevor Chappell, State Political Correspondent

MELBOURNE, April 18 AAP - The Victorian government will increase the annual levy on
30,000 gaming machines by $1,200 per machine to raise an additional $35 million a year
for the state's ailing public hospital system.

The gaming machine levy would rise from the current level of $333 per machine to $1,533
from July 1 and be renamed the hospital benefits levy, Treasurer John Brumby said today.

The increase is well below the fee recommended by the Harvey report into state business
taxes, which suggested that a $4,000 levy on every machine could raise $120 million to
offset payroll tax reductions.

Mr Brumby said the increased levy would apply to gaming operators Tabcorp, Tattersalls
and Crown Casino and would not affect pubs, clubs or the racing industry.

He said the increase was unlikely to please gaming operators but the government had
set a "fair balance".

"On the one hand, we've had to weigh up issues of investor certainty and investor confidence,
the interest and rights of gaming operators; on the other, I think, a community expectation
about the level of return to the community from the gaming industry," Mr Brumby said.

The Bracks government has promised to deliver $400 million in tax cuts to business
over the next three financial years and is set to outline its tax package on or before
the May 15 state budget.

The Harvey report made controversial recommendations that business tax cuts be funded
by increases in land tax and the $4,000 gaming machine levy.

Premier Steve Bracks said yesterday that the report's land tax recommendation was "unacceptable".

Today, Mr Brumby said the Harvey findings would not be the blueprint for tax reform
and that the report was "wrong" on the $4,000 levy.

Mr Brumby said the $400 million tax cuts would be delivered despite the government's
reservations on the report's two key recommendations.

"It will be a good package for business. It will involve fewer taxes for Victorian
businesses, lower taxes for Victorian businesses and simpler taxation arrangements," he
said.

"And on top of all that ... there'll be a minimum of $400 million of tax cuts paid
for out of the surplus, which will go to push down tax rates in Victoria and make us a
very, very competitive state."

The Treasurer rejected any suggestion that the government's decision to adopt a lower
than recommended extra levy on gaming machines had been influenced by a donation to the
Labor Party from a company owned by the Packer family.

Crown Casino, one of the state's largest poker machine operators, is owned by the Packer
family company PBL which donated $100,000 to the ALP just before the 1999 state election
was decided in a supplementary poll.

"In relation to suggestions that somehow people have influenced the government, that
is absolutely untrue," Mr Brumby said.

Opposition Treasury spokeswoman Louise Asher said she could live with the decision
on the gaming machine levy and everyone would favour more funds going into the public
hospital system.

"The point that I query is that this is a government that said it wouldn't be reliant
on gaming and here we're seeing yet another levy on gambling, yet another increased contribution
to state revenues from gambling," Ms Asher said.

AAP tsc/clr/las/bwl

KEYWORD: BUDGET VIC NIGHTLEAD

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