Lower taxes, higher rollers
Crown Perth has received an $18 million tax break from the West Australian government, in a rebate Treasurer Mike Nahan says will help the resort draw in more big-spending VIPs.
According to ABC News Australia, it’s the latest high-roller tax break handed to Crown Perth, though it’s already posting strong results in the VIP sector. Between July and December last year, Crown Perth’s high-roller revenue grew by 28 per cent to total $118 million.
The expected gains are meant to help plug a shortfall in government revenues, from a projected $31.2 billion in 2014-15 to an expected $25.6 billion in 2016-17.
Nahan called the three-year break a “reorientation of the tax imposed on high rollers. The objective is for Burswood to go out and attract more of them to pay more tax.”
The formula apparently has worked before; in 2014-15, when the government cut its international commission business tax rate from 11 percent to 8 percent, VIP revenue at the casino grew 44 percent to $250 million. Racing and Gaming Minister Colin Holt said the results showed that the lower high-roller tax rates were attracting gamblers to West Australia.
Lawmakers are clearly hoping history will repeat itself. Though the government expects to reap $67 million in casino tax this year, it originally projected income of $127 million.
