Major tax relief is on the way for Sydney's Star Casino with the NSW government sparing the venue a bill hike worth hundreds of millions of dollars.
The state government announced it will overhaul the crippling tax hike imposed by the previous government to prevent the casino from going bust, in turn costing thousands of jobs.
"You can't collect tax from a dead business, that is why we've had to make this change," Treasurer Daniel Mookhey said.
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"The previous government's casino duty hike was unrealistic, poorly developed and put thousands of jobs at risk.
"It was announced without consultation or consideration for the viability of the business and the thousands of workers they employ."
Instead, the government has introduced a transitional levy for the next seven years.
The Coalition's tax hikes would have slugged the Star $364 million more over the next four years but the treasurer argues that would have sent the casino broke.
Instead, he has stung the casino giant just $55 million extra in order to keep it afloat.
On July 1, 2030, the final poker machine duty rates will be set for the Star to be the same as Victoria.
If the casino's financial performance improves before then, more tax will be collected.
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But in exchange for the mega tax discount, the casino has to retain at least 3000 staff for the next six years.
"This is a great win for job security, a great win for working people and a massive win for our union," a union representative said.
But the Star itself is undeniably the winner of the deal, managing to dodge the imposition of a crippling tax hike locked in by the Coalition as it sought to rake in more revenue.
The new deal was slammed by the opposition.
"I don't know any business in NSW that has the luxury of the premier saying, 'Just pay the tax you think you can afford'," deputy Liberal leader Natalie Ward said.
The Star Sydney was fined $100 million for turning a blind eye to money laundering in its casinos last year.
In a bid to improve its reputation, the casino will transition all pokies to cashless gaming over the next 12 months.
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The Star's CEO Robbie Cooke said the agreement protects the Sydney team's jobs and the viability of the city's casino.
"While the in-principle agreement will result in an uplift in duties payable to the state, it has due regard to the circumstances of our Sydney business and as such helps to create a sustainable path forward for The Star Sydney," he said.
"The expected additional duty payable in FY24 is circa $10 million.
"It is also designed to provide employment certainty for team members in arrangements agreed with the United Workers Union. In addition, it will see The Star Sydney introduce a trial of its cashless gaming machine technology in October this year on 50 gaming machines and eight gaming tables.
"The arrangements enable us to continue working at pace to implement the significant reforms required to restore The Star Sydney to suitability, earn back the trust of the community, and ensure we remain a valuable contributor to the NSW economy."
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