TAXATION

Ms SIMMONS (Morialta) (16:50): My question is to the Minister for Recreation, Sport and Racing. Will the minister advise the house of the impact on stake money following the government's reduction in taxation?

The Hon. M.J. WRIGHT (Lee—Minister for Industrial Relations, Minister for Finance, Minister for Government Enterprises, Minister for Recreation, Sport and Racing) (16:50): On 26 November 2007, the Rann government agreed to TAB tax reform measures to assist the South Australian racing industry.

The racing industry will receive millions of dollars as a result of the wagering tax reform measures. The initial phase of the tax reform process will see $3.5 million being allocated to the racing industry from 1 July 2008. This represents 50 per cent of forecast TAB tax receipts in the first year. It is estimated that total tax receipts payable to the industry will be $8.4 million annually from 2012-13.

As a consequence of the government's reforms, Thoroughbred Racing SA has announced significant increases in prize money for South Australian racing totalling just over $2.1 million to the end of 2008-09. Standard prize money levels at metropolitan, provincial and country race meetings will receive increases which come into effect from 1 February this year, representing an injection of about $600,000 into grass root races in the current season.

The increases in prize money are designed to encourage owners, trainers and breeders to invest in horses in South Australia. The increases will give a much-needed boost to the overall confidence levels of the South Australian racing industry, particularly in the lead-up to the Magic Millions yearling sales.

The state government acknowledges the important contribution that the South Australian racing industry makes to the state economy, and believes that these important reforms will ensure that the industry will remain vibrant and prosperous into the future.