Cover image courtesy of Racing Queensland
An independent review into Racing Queensland was conducted over the past year by a committee led by former Australian Turf Club Chairman Matt McGrath, and the results were unveiled at Doomben on Saturday morning. Queensland Racing Minister Tim Mander provided the Queensland government’s response to the review, including 110 recommendations from which the government has accepted in full or in part 105.
Tim Mander | Image courtesy of Tim Mander
“This is more than a moment of change, it’s a moment of opportunity,” Mander said in his foreword on The Next Lap plan. “With clear purpose, collaboration, and determination, Queensland racing can step confidently into a new era.
"This is more than a moment of change, it’s a moment of opportunity." - Tim Mander
“Let us move forward together as we embark on ‘The Next Lap.’”
The recommendations encompass all three racing codes in the state, spanning infrastructure, prizemoney, welfare, and support for participants.
Prizemoney and QTIS to remain at current levels
A key promise from the review is that prizemoney statewide will not take a hit, and while the Queensland Thoroughbred Incentive Scheme (QTIS) will undergo an overhaul, payments won’t be diminished.
Paired with this, the state will see the roll out of Super Maiden races, and will aim to enhance the country racing program. The Battle Of The Bush series will expand to 70 qualifying heats over 35 weekends, with prizemoney increases in the pipeline.
Prizemoney stability was welcomed by Basil Nolan, president of the Thoroughbred Breeders Queensland Association.
Basil Nolan | Image courtesy of The Image Is Everything
“I think it’s going to be different, but a couple of pluses out of it obviously is that the prize money levels are going to be retained,” he said. “I think that's a very, very good idea.”
One of the accepted recommendations is the development of ‘hub’ and ‘spoke’ clubs, where larger race clubs will assist smaller clubs in their region with administration and to ease the burden on smaller communities.
"Country racing is the fabric of Queensland, and we have more country races than any other state in Australia." - Basil Nolen
“Country racing is the fabric of Queensland, and we have more country races than any other state in Australia,” Nolan said. “Obviously, those racedays are very important to the towns they are held in. Getting racing to be more involved in the communities around them is a great part of Queensland racing.
“The upkeep of those tracks where they run one meeting a year is very hard, and the volunteers aren’t getting any younger.”
Investment in infrastructure
As part of their response, the Queensland government has committed to a Racing Future Fund with a $200 million investment into racing infrastructure statewide. They will also honour an existing $25 million commitment to the Eagle Farm track to build a new grandstand.
One of the few rejections made to the review's recommendations was to the sale of major harness racing facility Albion Park, instead opting to turn it into a new racing headquarters, which will in time include moving Racing Queensland operations to the site and the development of a Racing Science Centre.
“The harness code has consistently stated a strong desire to maintain a presence in the city,” reads The Next Lap’s website. “Developing a ‘Racing HQ’ at Albion Park secures a metropolitan home for harness racing for the future. Commercialising Albion Park will help Racing Queensland diversify its revenue streams, setting it up for long-term financial stability.”
A previously floated sale of the Deagon track received a mention, with the Next Lap website stating that “careful consideration” will be given to the sale proposal, after consultation with the industry.
“I'd be definitely against selling any assets,” Nolan said. “We're short on stabling, we're short on training facilities. I think Deagon is an ideal opportunity to build up a training facility with more stabling. All you do with selling assets is sell them too soon.”
"All you do with selling assets is sell them too soon." - Basil Nolen
Nolan was in support of the proposed sale of Norwell Park, which had been acquired by the previous government as a potential harness racing location, but has yet to be developed.
“People who are better judges than me say that we will make a profit on that,” he said. “A lot of the trotting fraternity didn’t want to go there anyway.”
He added, “I'm quite happy with the highlights of it (the review). I think going forward, obviously, the devil is in the detail as always, but I think the Brisbane Racing Club will be very happy with the money provided for the grandstand.”
Wagering pinch point remains unaddressed
From the five recommendations not accepted, three were in regards to point of consumption tax (POCT), with the government chiefly refusing to lower the POCT rate from 20% to 15%.
Sportsbet Chief Executive Officer Barni Evans expressed displeasure with the unchanged POCT rate, which is the highest in Australia.
Lowering the tax rate would unlock investments into Queensland racing, particularly regional clubs,” he told News Corp on Saturday afternoon. “These investments would have delivered long-term sustainability for racing.
Barni Evans | Image courtesy of Sportsbet
“The consequences will be felt most by the 120 regional and country race clubs, which were set to be the largest beneficiaries. These clubs will continue to rely on Government handouts rather than enjoying the benefits of a thriving, self-sustaining industry.
“The Government’s response to the review is disappointing. It does not address the long-term sustainable funding of the industry through tax reform. It represents a significant missed opportunity to reignite investment and secure the future of racing in Queensland.
“Over the past four years, Racing Queensland’s revenue has significantly trailed the growth in other states. The reason is clear; Queensland’s 20% point of consumption tax, the highest of the major states in the country, is driving investment south.
“The reality is Queensland cannot compete with New South Wales, Victoria, and South Australia with the current tax framework.”
“The reality is Queensland cannot compete with New South Wales, Victoria, and South Australia with the current tax framework.” - Barni Evans
A press release from Responsible Wagering Australia (RWA), entitled “Queensland Government Puts Racing Industry At Risk”, expressed similar concerns.
“We know there is a tipping point where taxation becomes counter-productive, as wagering service providers have to pull back on customer value with lower odds, and less investment,” RWA Chief Executive Kai Cantwell detailed in the release.
“That reduces wagering activity, shrinks the tax base, and results in less money flowing to racing. While the review identified the need to reassess the point of consumption tax settings, it is unclear why this recommendation was not progressed, and RWA believes with further discussion we could achieve a better long term result for the industry.
Kai Cantwell | Image courtesy of Responsible Wagering Australia
“Reducing the current 20% POCT rate remains an important opportunity to strengthen industry funding, support growth, and secure long term returns for racing.”
Nolan saw the move differently, saying, “I’m very happy that we have stayed at 20%. I think the bookmaking business is very much a growth industry, we have gone from 25 bookmakers in Queensland in 2023 to over 150 now.
“I don't think that it would have been a good look if we reduced the tax on them. The government's made the right decision.”
“I don't think that it would have been a good look if we reduced the tax on (bookmakers).” - Kai Cantwell
What New South Wales can learn
It is worth noting that Racing Queensland’s review is the most comprehensive review of the three codes in 25 years, and this timeline doesn’t stray far from the gulf in time since the establishment of the Thoroughbred Racing Act of 1996. As the open consultation process into the review of the Act that governs Racing New South Wales, there are limited opportunities for participants to make their voice heard.
Queensland’s review demonstrates that the views of the industry can be heard and taken into consideration, but their concerns must be brought to the review’s attention. The deadline for submissions to the Hon. Brad Hazzard’s review of the Act close on Monday, December 8. The time to act is now.
