WA thoroughbred industry makes collective submission to the Independent Review into RWWA’s Financial Sustainability and Governance.
Following the WA Government’s announcement in December 2025 of an independent review into Racing & Wagering Western Australia’s (RWWA) Financial Sustainability and Governance, the representative bodies of the WA thoroughbred racing industry, together with input from key participants and Magic Millions, prepared and unanimously endorsed a joint submission to that review.
A link to the full submission and a summary is provided below.
Background
The Western Australian racing industry collectively contributes $1.3 billion to the state economy each year and supports more than 25,000 jobs within the sport and associated industries. It plays an essential role in providing essential diversification for WA’s resource-reliant economy.
The WA thoroughbred industry is responsible for the majority share of that economic contribution; delivering $866.4 million annually and directly sustaining over 6,600 full-time equivalent jobs across metropolitan and regional areas. Beyond direct employment, the sector supports local small businesses, generates significant wagering tax revenue and drives tourism, as well as being an historic part of the social fabric of Western Australian culture.
There is much to celebrate within WA thoroughbred racing at some levels: increasing attendance, year on year growth in wagering turnover (at a time when many states are in decline), a media rights partnership with Channel 7 that has led to broad distribution of our product across multiple viewing platforms, and a revival in interstate participation in our major carnivals are all hugely positive indicators that the sport remains popular and relevant in today’s society.
However, stagnant prize money, rising costs, projections of future funding cuts and a lack of investment in infrastructure is eroding participant confidence in the industry. The government’s decision not to sell the WA TAB when the opportunity arose, and increasing costs of operating wagering service providers, driven by government-mandated regulations, have all played a part in creating this situation.
As racing faces rising operational costs and declining real returns, the industry requires urgent funding reform.
The WA thoroughbred industry welcomes the independent review of RWWA’s financial sustainability and governance and is committed to working with the review panel, DLGIRS and government to ensure that the result of the review is a bright, sustainable future for the sport we all love and support.
Submission Summary
The current funding model for racing in WA is not working.
In the past three financial years, RWWA has reported cumulative losses of $93m. It faces the possibility of lacking the necessary funding to maintain current distribution levels to the WA racing industry; these distributions support prize money, infrastructure development and maintenance, and the integrity of racing as a whole.
This financial crisis threatens the viability of clubs and participants across all three codes.
The thoroughbred industry’s submission identifies four priority areas for meaningful reform to ensure the sustainability of RWWA and the wider racing industry.
1. Betting Tax Reform
A change to WA betting tax distribution is the most effective lever to ensure not only continued viability of racing, but an opportunity for growth. Currently, WA racing receives 30% of Point of Consumption Tax (POCT) receipts, with the WA government retaining 70%.
In Queensland and Tasmania, principal racing authorities receive 80% of POCT. In Victoria, it’s 50%.
The State Government is retaining 3.4 times more in net wagering tax (an additional $66m annually) than it did just seven years ago (up from c$27 million to c$93 million). This represents substantial leakage from the wagering ecosystem. These funds should be used to support the industry that generates them.
Recommendation: increase the “pass through” percentage of betting tax to return 65% to the industry to ensure financial sustainability and address critical infrastructure requirements.
Principle: This is not a request to the State Government for discretionary assistance or subsidy; it is a structural correction. We are asking the State Government to take less of the funding generated by racing. Increasing the pass through rate to 65% would allow racing to remain self-sustaining and nationally competitive.
2. Retention of Competitive Betting Tax Rates.
Western Australia operates within a competitive national wagering market where punters and operators are highly sensitive to price change. The current POCT rate of 15% mirrors that of Victoria and NSW.
Any increase in the Point of consumption tax (POCT) rate drives wagering activity towards lower-tax jurisdictions or offshore alternatives leading to weakening market turnover, reduced profitability and accelerating the decline of the WA TAB – all of which would ultimately diminish funding available to WA racing.
Recommendation: Maintain current POCT tax rate AT 15% to prevent erosion of the wagering base.
Principle: Stability in tax settings is essential to restoring confidence and protecting future taxation receipts and WA racing’s funding.
3. Governance & Efficiency Reform at RWWA
Financial sustainability cannot be separated from governance reform or organisational efficiency. The cost structure of operating RWWA has grown beyond what can be sustainability supported in the face of declining wagering revenue.
The WA thoroughbred industry welcomes and acknowledges that action is already being taken by RWWA in this regard.
We also acknowledge that one of the key drivers in RWWA’s expanding cost base has been the increasing cost of operating the WA TAB as government-mandated regulations around anti-money laundering (AML) and customer monitoring, alongside restrictions on wagering advertising, have been implemented.
Additionally, the government’s decision not to sell the WA TAB in recent years, despite recommendations from the industry and independent reports to do so, have also impacted RWWA’s capacity to generate funds for racing.
Recommendation: Conduct a comprehensive efficiency review of RWWA’s operating model to identify opportunities to reduce administration overheads. Benchmark costs against interstate PRAs to ensure WA remains competitive and efficient.
Principle: prioritise expenditure toward participant returns and core racing outcomes, ensure that every dollar generated is utilised to support the livelihoods of those within the industry. Every dollar spent running RWWA is a dollar not returned to the racing industry.
4. Code Funding Allocation Reform.
The current discretionary funding model does not adequately reflect relative size, performance, economic contribution or return on investment between the three codes.
The issue is not inter-code competition. It is capital discipline and governance integrity.
Recommendation: Western Australia should adopt a transparent, formula-based funding model grounded in objective performance indicators and clearly defined sustainability thresholds. Funding must follow value creation, while separately addressing legitimate whole-of-industry sustainability considerations in a structured and transparent manner.
Funding allocation should align with wagering generation, economic footprint, participant scale and measurable performance indicators.
Principle: Adoption of a performance-based funding distribution model that would incentivise growth and support long term sustainability across all codes.
There are 34 separate recommendations within the full submission, some of which are minor, and some of which are already being addressed by RWWA, but the vast majority fall within the four priority areas as identified above.
We stand at a critical juncture for our industry, in the absence of substantial reform the industry risks contraction, job losses, declining competitiveness with other states, and permanent economic damage. Our clear objective is to ensure meaningful reform that fosters growth, restores confidence and ensures racing remains sustainable for generations.
We are fully committed to working collaboratively with the reviewers, DLGIRS and government, to achieve a successful and lasting outcome for the WA Thoroughbred industry.
Notes
The thoroughbred industry representative bodies for Western Australia consist of:
WA Racing Trainers Association
Thoroughbred Breeders WA
WA Jockeys Association
Perth Racing
WA Provincial Thoroughbred Racing Association
Country Racing Association
WA Racehorse Owners Association
The collective submission was also supported by leading participants and Magic Millions.
You can view a full copy of the collective thoroughbred industry submission to the independent review panel here.
The authors of the review were Scott McDowell and Michael Grant, and all of the thoroughbred industry representative bodies are extremely grateful for their outstanding contributions.
Contact
For more information, please contact your appropriate representative body.