O'Farrell defends $300m tax cut for clubs
August 3, 2011
AAP
NSW Premier Barry O'Farrell has defended plans to give registered clubs a $300 million tax cut.
Laws will be introduced to state parliament on Wednesday to reduce the amount of tax paid by clubs but also impose a requirement that millions of dollars in grants are made to community groups.
The plan was a key coalition state election pledge.
"Clubs not only provide a valuable role in the economy, they employ something like 50,000 people ... but they also provide assistance in communities," Mr O'Farrell told the ABC on Wednesday.
"I'm not shying away from the fact that the club sector's getting a tax grant, any more than I'm shying away from the fact that we abolished a $429 million tax that Labor put on homebuyers.
"We have a raft of tax reduction measures which are designed to stimulate the state's economy, to get more economic activity."
Tourism and Hospitality Minister George Souris told Fairfax radio the government supported the club sector because "they reach every corner of our community and we value them."
Clubs NSW said the new tax arrangements meant clubs would increase grants to community and sporting groups by $89.5 million over four years.
The state's licensed clubs will pay an estimated $2.5 billion in total tax over that period - a reduction of $299 million on the existing arrangements.
"The new tax rates also see the amount of funding donated directly to community and sporting groups rise to record levels with clubs donating at least $264 million in support," Clubs NSW CEO Anthony Ball said in a statement.
"Clubs were formed to support local communities and the proposed new tax rates will allow them to continue doing this."
NSW Opposition Leader John Robertson has reportedly refused to commit to supporting the tax reforms.
"While the government is warning of a horror budget with billions of dollars in cuts to community services, education and health they are handing $300 million to poker machine operators," he told News Ltd.
"Three hundred million dollars over four years would pay for an additional 2250 police or 3030 nurses. The government should spend this money funding frontline services instead of handing cash to poker machine operators."
