Monday, 3 November 2008: The Victorian Government today gave the local racing industry a huge boost on the eve of the Melbourne Cup by unveiling an $86 million infrastructure package and a 60 percent reduction in wagering taxation to apply from 2012.
Deputy Premier and Racing Minister Rob Hulls announced that a 60 per cent reduction in wagering taxes will be implemented post 2012 to secure the long-term future of Victoria's racing industry.
Hulls said the funding boost was the biggest State Government investment in rural and regional racing in Victoria's history.
Hulls said the Brumby Labor Government would provide $45 million to the three racing codes through Racing Victoria, Greyhound Racing Victoria and Harness Racing Victoria for the redevelopment of their venues.
The three codes will contribute $41 million to the infrastructure package.
“This funding package represents a huge investment in rural and regional communities,” Hulls said.
“It will create up to 400 jobs and boost regional and rural economies.”
Projects will be selected with a key focus on drought-proofing, improving safety, and regional racetrack redevelopment.
The projects are expected to be completed within the next two years and will be selected in consultation with the industry.
Victoria's Minister for Gaming Tony Robinson said the racing industry would benefit from a 60 per cent drop in Victorian wagering taxes from 2012 when the gaming and wagering licences will be separated.
The rate for parimutuel wagering will be reduced from 19.11 per cent to 7.6 per cent and the rate for fixed betting will drop from 10.91 per cent to 4.38 per cent.
“The tax deduction savings will replace the revenue which the industry currently gets from electronic gaming machines and ensure the future arrangements are no less favourable,” Robinson said.
“We estimate this will provide over $1 billion over the licence period and ensure the ongoing success of Victoria's internationally-renowned racing industry.”
Victoria's off course wagering and betting licence, currently held by Tabcorp, expires in 2012 with the Government announcing the Registration of Interest documentation to commence the competitive process for the post 2012 licence will be available on Wednesday.
Simulated racing games and a betting exchange will also be able to be offered under the post 2012 wagering and betting licence.
