Gambling revenue skews GST distribution, Crook

NATIONALS WA Federal Member for O’Connor, Tony Crook MP, has met with Independent MP Andrew Wilkie in Perth this morning to discuss gambling reforms.

Mr Crook said the meeting was valuable for both parties.

“Obviously Mr Wilkie has an agenda to put forward in relation to gambling reforms, and I also have an agenda to ensure that Western Australia does not continue to be ripped-off by the Commonwealth.

Mr Crook said he was concerned that gambling revenue raised by other States was completely exempted from the calculations used to determine GST returns.

“If Western Australia’s mining royalties are not exempt from the GST calculations, why should the billions of dollars raised through gambling be exempted?

“States such as New South Wales, Queensland and Victoria earn billions of dollars each year from gambling revenue – representing a significant proportion of their total revenue base,” Mr Crook said.

“It’s no wonder these States are addicted to gambling revenue when they are rewarded for it through GST distribution.”

Mr Crook said he was pleased to see Mr Wilkie voice his support for this issue during a media doorstop today.

According to the Australian Bureau of Statistics, gambling revenue raised $1.706 billion for New South Wales in 2009-10, representing 8.9 per cent of the State’s total revenue. In Victoria, gambling raised $1.632 billion, or 11.8 per cent of State revenue, and in Queensland, gambling raised $927 million, or 9.8 per cent of State revenue.

Comparatively, Western Australia’s gambling revenue for 2009-10 was $176 million, representing 2.8 per cent of State revenue.

Mr Crook said he acknowledged the role Mr Wilkie has played in moving the debate on problem gambling forward.

“I certainly acknowledge that problem gambling is an issue, and I believe it is important that we take steps to addressing this issue,” Mr Crook said.

Mr Crook said WA was leading the nation in terms of addressing problem gambling.

“Gaming in WA operates in a very unique environment, with electronic gaming machines restricted to a single venue in the entire State.

“WA also has the lowest number of gaming machines in the nation – with a slower spin rate than gaming machines in other States.”

Mr Crook said he would continue to engage with Mr Wilkie on this issue over the coming weeks.