Queensland hospitality figures have expressed fury over the proposed tax relief plan for Star Entertainment, owner of the newly opened Queen’s Wharf precinct in Brisbane.
Discussions about potential taxpayer assistance for Star Entertainment were confirmed on Wednesday, 4 September. It was suggested that delayed tax payments would be the most likely form of support to be extended to the operator.
Background of the Situation
Star Entertainment opened its $3.6 billion Queen’s Wharf development in Brisbane’s CBD on 29 August. The 12-hectare precinct employs 3,000 people, including 1,400 new jobs. However, reports indicate the company needs $300 million in short-term funding to continue operating the project.
The potential tax relief for Star has sparked outrage among local restaurant and cafe owners, who are already facing significant financial pressures due to the cost-of-living crisis and reduced dining out by Queenslanders.
Simon Gloftis, owner of several prominent Queensland restaurants, including Hellenika, SK Steak and Oyster, Sushi Room, and Sunshine, called the proposition “absolute bullsh-t.” He argued that if there is tax relief for Star, the same benefit should be extended to all businesses.
Amanda Scott, owner of Farmhouse Kedron, expressed her anger over the proposal. Scott, who recently received a $344,000 payroll tax bill from the state government, said she felt unsupported as a small business owner.
Phillip Di Bella, a coffee industry leader and hospitality advocate, emphasised that Star should not receive special treatment. He called for a “one size fits all” approach to tax relief.
Avoiding Queen’s Wharf Closure
Premier Steven Miles stated that keeping Queen’s Wharf open is the priority, describing it as a “fantastic asset” for the city and an important platform for the Brisbane 2032 Olympics. He emphasised that they must do everything to avoid closing Queen’s Wharf.
While no decision has been made, Mr Miles emphasised the need to protect thousands of Queensland jobs. He stated that tax payment deferrals for Star are being discussed, provided that the taxes are ultimately paid.
He further explained that the state government often discussed tax deferrals for projects with large capital costs and significant job dividends. He stressed the importance of Queen’s Wharf as a major attraction and job generator for the city and state.
Broader Context
The situation in Queensland comes as Star Entertainment faces challenges across its operations. The company’s Sydney licence remains suspended following an inquiry that found evidence of anti-money laundering and counter-terrorism failings.
In New South Wales, the state government has already ruled out providing further taxpayer assistance, stating it would “primarily support the Star’s Queensland expansions.”
Regulators approved a gaming licence for Queen’s Wharf just two days before the release of a New South Wales report that Star still needs to reassess its operations before it can hold a gaming licence in that state.
Star Entertainment’s financial troubles have been evident in recent days. The company’s shares were temporarily suspended from trading on the ASX after it failed to lodge its financial results on time.
Published 9-Sept-2024
