Responsible Wagering Australia (RWA) welcomes the Queensland Government’s announcement of a comprehensive review into the state’s racing industry and its commitment to consulting with industry stakeholders throughout the process.

RWA CEO Kai Cantwell said RWA and its members support a strong funding model that gives Queensland taxpayers the best deal and guarantees a prosperous racing industry, which is why we are pleased the review’s first area of focus is ‘making sure all racing codes are financially sustainable.

‘However, the need for this review should serve as a warning to other jurisdictions about the consequences of excessive taxation and regulation,’ Mr 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.

‘Despite the former Queensland Government increasing the Point of Consumption Tax (POCT) to 20 per cent in 2022 with an 80 per cent passthrough rate to racing, the Government is now revisiting the industry’s funding and sustainability – highlighting the unintended consequences of over-taxation and regulation.

‘80 percent of all Queensland POCT revenue is allocated to the racing industry, meaning a decline in wagering activity also reduces critical funding for racing participants, prize money, and infrastructure.

‘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.

‘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.

‘We thank the Queensland Government for taking time to consult with industry as part of the review and look forward to working together to find a way forward that is good for racing and good for Queensland.’