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Breeders bristle at stallion tax proposal

15th Jun 2009

The Daily Telegraph - Ray Thomas - Tuesday, 16 June 2009

RACING'S breeding sector has dismissed as "unfair" recent calls for stallion owners to pay a levy towards prizemoney.

With NSW Racing's funding base under threat and a push for corporate bookmakers and betting exchanges to pay a turnover tax on bets, it has been suggested the breeding industry should also be made to pay its way through either a stallion or foal fee.

But Thoroughbred Breeders Australia president Trevor Lobb said last night Australian breeders already made a significant contribution to racing and the economy.

"Australia has the second-largest breeding industry in the world with 800 stallions and 28,000 broodmares, which represents billions of dollars of investment in the riskiest form of primary industry," Lobb said.

"The size of the investment needed for even a moderately priced stallion is millions of dollars with no certainty of success.

"Breeders go into the business with their eyes open and are not asking for sympathy or special treatment, but if there's going to be a tax on the few really successful stallions, then there's a case for compensation for the failures. Both suggestions are ridiculous.

"Breeders will continue to play a constructive and supportive role in addressing racing's challenges. But don't expect us to cop talk of a wealth tax or success levy without first putting the facts on the table."

Lobb also pointed out that 80 per cent of breeders are racehorse owners, thus increasing their investment in the racing industry.

"This translates into numerous jobs in stables and increases runners for race clubs."