Cover image courtesy of Sportpix
As an independent bloodstock consultant (sounds better than agent), my work spans both sides of the market. I actively target European horses capable of winning prizemoney in Australia, while also representing breeders – including myself – who are invested in producing thoroughbreds for returns in both the sales ring and on the racetrack.
But beyond transactional interests, I recognise the broader challenge: Australian racing, like much of the global industry, faces structural headwinds. With a relatively small population and increasing competition for attention and investment, the industry must find smarter, more sustainable ways to future-proof itself.
This proposal isn’t about penalising imports for the sake of protectionism. It’s about monetising their participation in a way that strengthens the foundation for everyone. There’s no such thing as a free meal and if imports are to benefit from the generous prizemoney and black type on offer, then a fair and strategic contribution to the long-term health of the industry is not just reasonable, it’s essential.
William Johnson | Image courtesy of William Johnson Bloodstock
In an era where industries are increasingly expected to stand on their own two feet, this proposal offers a practical, self-funded solution one that could deliver $200 million to Racing Australia over the next decade without a single call to Canberra. It’s not about taxing success, but about ensuring those who benefit from the system also help sustain it.
At the heart of this is a clear step toward The Great Reset – the long-overdue process of re-establishing Racing Australia as a central governing body with the power to lead, invest, and implement real change. If we want national cohesion, integrity, and future planning, we need more than words – we need capital and commitment.
This is not an argument against imports. Horses like Via Sistina (Ire) (Fastnet Rock) – the fastest ever G1 Cox Plate winner – show just how valuable they can be. But this is an economic lever to discourage mediocrity and ensure imported horses entering our system contribute to a natural equilibrium – one that maintains quality and supports sustainability.
Via Sistina (Ire) | Image courtesy of The Image Is Everything
Whether or not you agree with every element, I hope this proposal sparks serious discussion about what a simple Stud Book registration fee could become – and how a straightforward policy could lay the foundation for the financial future of an industry we all care deeply about.
Background: A broken model
Imported racehorses currently pay a $550 registration fee to the Australian Stud Book regardless of value. Currently the fee is only netting $104,500 per annum for Racing Australia / Stud Book.
Separately, they pay GST at 10 per cent on the (purchase price + insurance costs + transport costs) when entering the country. However, many importing entities are GST-registered, meaning the GST is claimable – and thus not a real cost to them.
Despite this, these horses are immediately eligible to compete for Australia's top-tier prizemoney and black-type.
Why not a government levy?
Requires federal legislation – slow, expensive, politically difficult.
Revenue goes to Treasury – not into racing.
Not feasible amid cost-of-living pressures.
The industry-led alternative
Racing Australia – through the Australian Stud Book – controls import registration. It can introduce an import levy as an industry policy decision.
No new law. No political wrangling. Immediate implementation.
Scope of levy: Racing, not breeding
This is not a blanket tax on imported horses – it is specifically targeted at:
Horses imported to race in Australia and stay longer than 90 days.
Those deemed racing prospects at the point of registration.
This would not be imposed on shuttle stallions that are imported for breeding purposes annually.
Considerations:
Fillies and mares used for breeding may be exempt or charged a reduced fee, acknowledging their long-term value to developing new Australian bloodlines.
A clear definition of “racing prospect” can be tied to Stud Book registration type, age, and intended use declarations.
This ensures the levy targets short-term, commercial imports – not long-term contributors to the Australian breeding pool.
Proposed levy options
These figures & percentages are for demonstrative purposes.
1. Flat Fee Model
$10,000 per imported racing prospect (1.6 per cent of average landed value: $600,000).
Collected on Stud Book registration (currently $550).
2. Value-Based Model
10 per cent of declared import value.
Based on purchase price + insurance costs + transport costs.
Tied to GST import declaration given to the ATO (but non-claimable).
Note: GST will be duplicated across the import and levy. GST will be claimable on the levy.
Revenue potential
Approximately 190 imported racing prospects per year.
Average landed value: $600,000
Flat Fee: 190 × $10,000 = $1.9 million
10% per cent Value-Based Levy: 190 × $600,000 × 10 per cent = $11.4 million
Note: As GST is claimable for many, this levy may be the only direct, non-recoverable financial contribution made by importers. Noting again, it is only netting $104,500 per annum for Racing Australia / Stud Book at present.
Gradual introduction
This style of levy could also be gradually increased whereby it was initially 5 per cent and was increased to 10 per cent over a number of years. The number of imported horses is quantifiable and the impact the levy has can be tracked.
Welfare and rehoming pressures
Imported racehorses often remain in Australia post-career, adding pressure to welfare and rehoming systems. A portion of levy proceeds could be directed toward developing nationally supported aftercare pathways.
Jurisdictional Fairness
New Zealand horses exempt, preserving longstanding reciprocal arrangements.
South African imports and Hong Kong returnees assessed case-by-case.
Breeding-only imports, especially fillies and broodmares, may be exempt or offered tiered fees to support long-term bloodline development.
The long-term vision: Racing Australia Future Fund
The import levy is not just about revenue – it's about reform. All proceeds can seed a Racing Australia Future Fund:
Conservatively invested to return 10–12 per cent annually.
If $11.4 million is contributed annually into a fund for 10 years and earns 10 per cent per annum compounded, the fund would grow to approximately $199.86 million after 10 years.
Long term would help fund infrastructure, biosecurity, equine welfare, national coordination.
Strategic use:
Modernise Racing Australia as a national governing body.
Digitise ownership and breeding administration.
Vertically integrate the payment system – with Racing Australia overseeing.
Syndicate structures.
Ownership onboarding and verification.
Centralised trainer, vet, and syndicate payments.
This creates trust, transparency, and operational efficiency – and brings racing into the 21st century.
Key benefits
Fair and targeted – focuses only on racing prospects into Australia and does not include New Zealand.
Requires no taxpayer funding or legislation, with full control retained by the industry.
Ensures those who benefit from Australia's racing system contribute proportionally to its upkeep.
Modernises Racing Australia’s national role
Builds a capital base for industry sustainability
No government interference needed
Key risks and potential criticisms
The levy could be viewed as a barrier to international participation, favouring domestic interest over open competition.
The added cost may deter some buyers from importing horses, potentially affecting race field sixes, trainer income, and auction turnover.
Trainers, agents, and syndicators who rely on imported horses may oppose the levy, arguing it adds pressure to already tight margins.
Some may argue that money should be spent immediately on prizemoney or infrastructure rather than locked into a long-term fund.
Conclusion: Build the future – don’t tax the past
This is not about taxing participation – it’s about rebalancing responsibility and building a better future.
No lobbying. No legislation. No delay.
The solution is already within reach.
