Negotiations for Star Relief Continues, Taxes to be Paid: Queensland Government.
A strict approach will be taken by the Queensland government to ensure that troubled casino operator Star Entertainment fulfills its tax obligations.
Nevertheless, Deputy Premier Cameron Dick mentioned ongoing discussions about tax relief with Star to prevent the closure of Queen’s Wharf and avoid a potential disaster for local businesses.
Reportedly, Star needs $300 million (US$202 million) in short-term funding to keep operating the $3.6 billion (US$2.4 billion) precinct in Brisbane’s CBD, just a week after its opening.
The state government has initiated talks with Star, considering tax payment deferral options.
This move has sparked frustration among local cafe and restaurant owners, questioning why Star should receive preferential treatment while they struggle financially.
However, Dick affirmed that the state government will ensure Star fulfills its obligations.
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“No matter what, let me be clear—state taxes will be enforced,” he mentioned to reporters on Sep. 6.
“We will be firm with Star and ensure that they fulfill their tax obligations.
“This company must meet its obligations to its workers, suppliers, and the taxpayers of Queensland.”
Dick ensured that the state government would take steps to protect the precinct’s 3000 staff and the thousands of businesses affected by a potential shutdown.
“The company has made significant errors. They have been held accountable for those errors, as they should be,” Dick added.
“But we will not penalize the workers and small businesses that are part of that remarkable development.”
The Queensland government has postponed the threatened suspension of Star’s casino licenses until December.
An independent review in 2022 concluded that Star was not suitable to hold a license in Queensland, citing serious shortcomings in anti-money laundering and responsible gaming efforts.
The grand opening of Queen’s Wharf on Aug. 29 employed a total of 3000 individuals, creating 1400 new jobs.
“There are numerous suppliers, small businesses, that have commercial agreements with all the businesses operating in the development at Queen’s Wharf,” Dick explained.
“So, the stakes are high for those businesses and workers.
“Therefore, we are in talks with the company to explore all options to prevent a crisis for those businesses and employees.”
Star operates casinos in Brisbane, Gold Coast, and Sydney, with CEO Steve McCann also seeking financial assistance from the New South Wales (NSW) government.
NSW officials are under pressure to safeguard the jobs linked directly or indirectly to The Star’s Sydney casino.
Gaming Minister David Harris disclosed at a budget estimates hearing on Sep. 6 that the government was considering various contingencies for the casino, including in the event of financial collapse.
“We have been evaluating this since last year,” he stated.
Under a previous agreement with the casino operator, the state deferred a planned poker machine tax increase in exchange for a transitional agreement guaranteeing 3000 jobs.
The Star will face penalties if it falls below the required standards.
“We are currently not contemplating further assistance,” Harris confirmed.
“Our concern is that the financial issues at Queen’s Wharf pose a significant risk, and we do not want taxpayer money from NSW going towards that.”
The state opposition and United Workers Union have urged the Labor government to consider additional support for the casino to prevent job losses.
Opposition gaming spokesman Kevin Anderson highlighted the concern that Harris had not engaged in direct discussions with The Star since earlier in the year, despite the uncertainty surrounding the casino’s future.
“It is troubling that, with so much at stake, the minister is unwilling to make contact,” Anderson remarked.
