THE NSW Opposition has unveiled a pledge to cut pokie taxes to "save rugby league".
Speaking exclusively to The Sunday Telegraph, Liberal leader Barry O'Farrell announced the cuts would save NSW clubs a total of $300 million over four years with leagues clubs that fund NRL teams benefiting by $80 million.
But in return NSW clubs will be required to contribute at least $90 million to junior codes and community organisations over four years.
Under a Coalition government, the tax rate on gambling revenue for large clubs, which includes NRL leagues clubs, would be cut by 2.5 points from the current rate of 39.99 per cent to 37.49 per cent.
Smaller clubs earning less than $20 million a year in pokie revenues would receive tax cuts ranging between 1.1 to 2.6 percentage points, bringing the lowest rate down to 28.99 per cent. Mr O'Farrell defended handing a tax break to clubs, arguing "saving rugby league" was vitally important.
"Rugby league is the premier sport in our state and we want to make sure the NRL is healthy and the way to do that is to support the clubs by creating an economic environment where these enterprises can thrive," said Mr O'Farrell, who became a Wests Tigers supporter after the North Sydney Bears fell over.
"The loss of a football club hurts not only the economy it hurts the community."
Mr O'Farrell said the loss of $300 million from the government's coffers would be offset by other gains contained in a report conducted by KPMG. These included the creation of 1924 jobs over the period, an increase in the state economy of $261 million and a $272 million increase in community spending by clubs over four years.
The taxes were introduced in 2004 by the Carr Government despite a PR onslaught by clubs, which argued they were unfair and would have a devastating impact on community funding. The cash-strapped Cronulla Leagues Club, which used to give $2.5 million a year to the Sharks, announced next year it would hand over only $250,000.
For the first time clubs will be able to claim tax deduction for contributions made to NRL and other professional sporting clubs for anything except player wages. The deduction would be limited to 1.1 per cent of annual gaming revenue.
NRL chief David Gallop said the announcement was "outstanding news for the game".
"The tax certainly had an affect on the game with some teams dropping out of junior competitions due to decreases in direct funding from leagues clubs," Gallop said.
The new policy will increase the percentage of pokie revenues clubs are required to give junior sporting clubs and community organisations, including charities and aged care centres. For every $1 million in gaming revenue the club will be required to hand over $22,500, up from $15,000.