Tax is based on ability to pay

The ClubsNSW lobby seems to have hijacked the media with their propaganda.

The State Government has a policy based on those who can afford to play and pay will do so for those who can't, for the greater good of all.

How any worker, or their representatives, could oppose this policy defies comprehension.

The alternative is a larger percentage GST or an increase in income tax.

In 2002, clubs earned gross poker machine revenue of almost $3 billion.

They paid about $300 million to the Commonwealth Government and about $400 million in duty to the NSW Government.

All of the additional revenue from these taxes will go to fund better and expanded hospital services throughout the state.

It means that an extra $1.6 billion from poker machine taxes will be dedicated to health spending over the next eight years.

As a baby-boomer population is getting older and medical advances make more and better high-tech treatments available to increase our longevity, it's quite clear that growth in hospital demand will continue to rise.

The NSW Labor Government will deliver the largest ever health budget to the Central Coast this year, spending an all-time record $260.7 million on health in the region.

The 2003/4 health budget for the Central Coast is an increase of $32.4 million on last year.

The Central Coast funding is part of a record State health budget of $9.3 billion.

The top 492 of the State's 1404 clubs will pay more state tax under the tax changes.

The other 912 clubs will pay no state tax or less state tax.

Of these 912 clubs, 450 have annual poker machine profits of $200,000 or less. They will continue to pay no State tax.

There are 462 with annual poker machine profits of between $200,001 and $1 million. They will pay less state tax.

There are 912 clubs or 65 per cent of clubs in NSW, 497 country clubs or 73 per cent of clubs in country NSW, 699 hotels or 38 per cent of hotels in NSW, and 582 country hotels or 57 per cent of hotels in regional NSW that will be better off or no worse off under the tax changes.

Clubs in NSW are an important community asset and I've always considered that their reason for being was based on mutualism for all.

The top 500 clubs in NSW are spending less than four per cent of their poker machine revenue on community grants.

Some of the wealthier clubs are now threatening to deprive local community organisations of financial assistance.

Mike Hudson, Umina-Ettalong ALP