New Zealand First

RACING

INTRODUCTION

New Zealand First proposes changes to the racing industry's tax rules and the removal of an overtly biased tax regime.

Racing in New Zealand directly and indirectly accounts for $1.5 billion dollars worth of GDP, employs more than 18,000 people and has export earnings of more than $130 million, and is an integral part of the Kiwi lifestyle.

Racing has been disadvantaged by successive governments since additional forms of gaming such as casinos and gaming machines were introduced..

In 2003 casino owners, mostly from overseas, took $457 million in revenue and paid $18.3 million gaming tax.

In the same year, racing's revenue was $218 million and the industry paid $34.4 million in gaming tax.

If casinos and racing are both paying gaming tax, equity demands that it should be at the same level.

Furthermore New Zealand First recognises the export potential of the New Zealand breeding industry and the need for improved international marketing.

PLANS

New Zealand First will:

remedy the anomaly in gaming tax legislation by putting all gaming on the same footing;
implement an improved depreciation regime for stallions (write-down over two years) and broodmares (including provision to fully depreciate a mare 12 years or older in the year of purchase);
provide a tax advantage for on course betting;
review the Racing Act 2003 and clarify governance and management roles; and,
provide interim measures in conjunction with the Racing Board to ensure a smooth transition to the amended taxation regime.


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New Zealand First
Parliament Buildings, Wellington
Phone: (04) 471 9292 Fax: (04) 472 8557
info@nzfirst.org.nz

Authorised by Doug Woolerton, 7 Chelsea Place, Chartwell, Hamilton