The government of New South Wales (NSW) and casino operator Star Entertainment have reached an in-principle agreement about higher tax rates in the Australian state.
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 The current administration has stated its intention to implement the previous one's plan to increase the casino tax, which was announced in June.  With effect from 1 July this year, the tax rates for land-based casinos will increase, as announced in December 2022 by the current government.

 A rise from 17.91% to 20.25% in the non-rebated duty rate and a doubling of the rebate rate from 10% to 12% were among the planned increases.

 A tiered approach would also replace the current flat rate of 20.91% for poker machine duty rates.  For machines earning less than AU$2,666 (£1,369/€1,583/US$1,741) per month, the rate was 0%; for machines earning more than $12,000 per month, the rate was 60.67%.

 Star, however, criticised the plans, calling them "flawed" and claiming they couldn't be sustained.  In New South Wales, Star runs the Star Sydney casino.

 The treasurer of New South Wales responded by agreeing to meet with Star to go over the revised prices.  Although these need to be codified before they can be put into effect, the operator has now achieved an in-principle agreement.

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 The suggested increased rates include a 12.5% increase to rebate play from the current 10%.  The previously anticipated increase from 17.91% to 20.25% for non-rebate play on table games was also approved.

 Up to 30 June 2030, the non-rebate play rate for poker machines (or pokies) will stay the same.  Not including GST, this is currently fixed at 20.91%.

 Nevertheless, this rate will increase to 21.91% on July 1, 2024, and 22.91% on July 1, 2027.  The government's previously suggested tiered system for the rate will take effect after 30 June 2030.

 Machines are exempt from paying taxes if their average monthly poker machine revenue (AMPR) is less than $2,666.  A rate of 37.6% will be applied to those earning between $2,666 and $6,667.  Machines over this threshold will be subject to a tax rate of 51.6%, with the next brackets facing rates of 42.1% and 42.7%, respectively, and this is all before GST.

 Star has the option to request a review of the pokies rates and criteria between 1 July 2030 and 30 September 2030.

 In terms of other taxes, a new charge equal to 35% of Star Sydney's gaming revenue exceeding $1.13 billion each fiscal year would be implemented.  This will be in effect from July 1, 2018, until June 30, 2030.

 Also, the present responsible gaming levy would remain unchanged, according to the administration.  This will not be applied to the new additional charge and will remain set at a rate of 2%.

 The revised prices will safeguard jobs in NSW and ensure the continued viability of Star Sydney, according to Robbie Cooke, CEO and managing director of Star.

 "The in-principle agreement takes into consideration the specifics of our Sydney business, even though it will increase the duties payable to the state," Cooke explained.  And this, in turn, aids in laying the groundwork for Star Sydney's future sustainability.  In FY24, an estimated $10.0 million in extra duty is due.

 As part of the agreements reached with the UAW, it is also intended to guarantee team members' jobs.

 "The arrangements allow us to speedily execute the substantial reforms needed to bring Star Sydney back to its proper place, regain the confidence of the community, and guarantee that we will continue to be an asset to the NSW economy."

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 After going through a rough patch in NSW, Star will be relieved to hear the tariffs have been revised.

 Star announced plans to implement cost-cutting and reorganisation measures in April.  "Significant" and "rapid deterioration" in operating conditions in the state were previously warned of, and this followed their warning.

 Several investigations concerning possible wrongdoing by Star have been launched by parliament.  As a result of the cumulative effect of regulatory operating restrictions and exclusions, it has also announced intentions to reorganise.  Star said it had contributed to this unfavourable climate when coupled with "emerging weakness" in consumer purchasing.

 Star Sydney, the company's biggest income generator, "continues to operate in an uneven competitive environment," according to the statement.  This is because of the consequences of severing its ties to junkets.