A trade union of workers employed at The Star Sydney, Australia’s second biggest landbased casino, reached out to the Treasurer of New South Wales Mr Daniel Mookhey with an appeal to reconsider a planned gaming tax raise that is about to come into effect this July. The union workers argue the tax increase, which was proposed by the previous state government, could result in hundreds of Star employees losing their jobs. Mr Dario Mujkic, who has been serving as a director of the United Workers Union for over a decade, outlined the workers’ growing concerns in a letter addressed to Treasurer Mookhey where he said the proposed tax increase could cause the casino to suffer $100 million in annual losses.
Mr Mujkic fears this would threaten the job positions of approximately 4,500 Star employees in the years to follow. The hike was announced by Mookhey’s predecessor Matthew John Kean following a probe into the Star Entertainment Group operations in the states of Queensland and New South Wales. The Group subsequently threatened to review its operations in Sydney unless the state government reconsiders the tax increase. The gaming and hospitality company also argued that the NSW tax rates would exceed those in Victoria.
Union Director Sought Assurance Star Employees Would Not Lose Their Jobs
These suspicions were confirmed during confidential briefings between the state government and treasury officials last week. The announced hike was originally intended to align the gaming taxes in the two states but the rates in Victoria ended up being lower since gambling companies operating in the southeastern state are provided with credit toward goods and services (GST) taxes imposed on gambling and non-rebate revenue. Under the policy of former Treasurer Kean, the maximum tax rates imposed on the operator’s gross gaming revenue will nearly double from the current 31.57% to 60.67%.
This massive increase prompted the trade union’s director to appeal to the current NSW Treasurer and the Minister of Gaming and Racing, Mr David Harris. Mujkic insisted on a meeting with the two and sought assurance that current Star employees would not lose their positions. Union members have already met with representatives of the gaming and entertainment company on several occasions after the news of the proposed tax increase first came in December 2022. The Star Entertainment Group predicted it would lose around $100 million per year under the new tax conditions.
For reference, employee salaries account for approximately 60% to 70% of the company’s operating expenses and Star Sydney reported revenue of $30 million during the first half of this fiscal year. The Chief Executive Officer of Star Entertainment Robbie Cooke is confident no company could possibly weather out such a steep tax hike and said that any attempts to negotiate with the previous government have been futile.
- Author
Daniel Williams
