Racing Industry

The Hon. T.A. FRANKS (15:17): My question is to the Treasurer on the topic of the racing industry support package. The budget papers state that from 2019-20, the industry will receive 1.5 per cent of net wagering revenue from the betting operations tax, providing around $4 million per annum to improve its ongoing viability and sustainment of jobs around the state. Is the government saying that the more the racing industry can get people to gamble, the more revenue they will receive back from the Marshall government or, indeed, vice versa?

The Hon. R.I. LUCAS (Treasurer) (15:17): I am delighted to receive a question today on the budget from someone in this particular chamber. Can I thank and congratulate the Hon. Ms Franks for asking the first question today to me as the Treasurer, two days after the budget, on the budget. I think the only question I have had from the Labor Party was basically when I was going to die, and it was very kind of them to inquire. In relation to the honourable member's question, the answer is yes; the higher the—

Members interjecting:

The PRESIDENT: Leader of the Opposition, if you want to have a conversation with the Minister for Tourism and Trade, you have it outside. Treasurer, please go on. By the way, Leader of the Opposition, it is showing gross disrespect not only to the Treasurer but to the Hon. Ms Franks, who is sitting at the back of the council room.

The Hon. R.I. LUCAS: Thank you. The formula that is to be used, which is exactly the same formula as is being used in Victoria under a Labor government and in New South Wales under a Liberal government, is a percentage of the net wagering revenue. In South Australia it's going to be 1.5 per cent. In Victoria it is 1.5 per cent. I think it is 2 per cent in New South Wales.

As a percentage of net wagering revenue, in and of itself it is quite clear that, if the net wagering revenue increases, then the share—if it is a fixed percentage, 1.5 per cent—clearly increases. I think it is self-evident that, if the formula which is used in all other jurisdictions in relation to distributions to the racing industry is a percentage of net wagering revenue, then, as the net wagering revenue either increases or in fact decreases, the return to the racing industry either increases or decreases.