David Farrar: No no no

Radio NZ reports:

A leaked report completed for the TAB NZ by racing insiders says the horse racing industry is “unsustainable” without further tax breaks.

It also recommends allowing TAB NZ to run online casinos, shifting the cost of the industry’s integrity board to the government and making structural changes including consolidating property ownership and management.

No, no, no, no. If they can’t stand own their own feet, then tough. Bad enough they already persuaded Parliament to steal money from bets on greyhound racing in Australia, and give profits to the horse racing industry.

An AI summary of the status quo is:

• Accelerated Depreciation & Deductions: Tax rules allow for faster depreciation of brood mares and yearlings. Breeders can deduct costs associated with breeding businesses, including insurance, veterinary services, and agistment.

• 100% Deductibility: Specific deductions have been introduced for the purchase of New Zealand-bred yearlings.

• “High-Quality” Horse Concessions: Tax reductions were introduced in 2018 targeting the purchase of high-quality horses.

• No Income Tax: The racing industry itself does not pay income tax, and it is exempt from certain levies that apply to other gambling sectors.

• Self-Returning Profits: Under the Racing Industry Act 2020, the sector can return gambling proceeds to itself (e.g., funding stakes), rather than to the general community.

So they already get very favourable treatment. And they have had bailouts in the past. No more.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders