United Workers Union and Star Casino Worried About Tax Increase



Benard Maumo

Sydney's Star Casino employees are concerned about their livelihoods following the impending rise in gaming fees slated for July. Subsequently, the United Workers Union called for a meeting with Daniel Mookhey, the New South Wales Treasurer, to deliberate on the subsequent actions.

United Workers Union and Star Casino Worried About Tax Increase

The head of the United Workers Union in Australia, Dario Mujkic, is concerned about the taxation imposed upon the Star Casino that would cost the business approximately $100 million annually. This would adversely affect 4,500 individuals, including dealers employed by the live casino

The union says the government should re-evaluate the taxes in line with the casino's effect on employment and quality of life. The Union insists the NSW Treasurer must look into the implications of Matt Kean's contentious track record, who was previously the Liberal leader, and do what is best for both sides.

In July, taxes in New South Wales would surpass Victoria, yet the declaration was without any involvement. The Treasury says the rate raise will align NSW and Victoria. Nevertheless, The Star has made a valid point that NSW's actual rates will be higher than Victoria's due to the latter's offering of credit for GST paid on non-rebate and gambling money. 

It was announced last year that taxes would be raised to provide financial assistance to those affected by the disaster and add revenue to keep up with Victoria's taxes. The new tax rate for Star Casino would rise from 31.57% to 60.67%, almost a 50% rise. However, Mujkic, the United Workers Union's Director, is determined to keep all the employees after the tax increment. 

Mujkic expressed his opinion:

"Our Union believes in progressive taxation, but I don't think this proposal was ever about tax justice, it was really about having someone – Star – to attack politically in the context of the gambling reform debate. 

"Star has been fined by regulators left, right, and center, and they are going through a very thorough remediation program. That is entirely appropriate because of misconduct and poor management. But I think this tax increase was additional to that."

Star Entertainment Group's CEO, Robbie Cooke, agrees with the union that the new taxes are unrealistic. He says The Star tried to reach an agreement with the government unsuccessfully.

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