15% Stallion Tax

Are you aware that HRA is proposing to introduce a 15% Stallion Tax on each and every service by a Shuttle Stallion AND any Stallion not domiciled in Australia?

The latest HRA news story states $18m was spent on shuttle sire services last season. This figure may be correct - however, what they fail to disclose is how much of that money goes to downunder interests;  how much allows staff to be employed to handle and manage those stallions;  how transport and feed companies benefit etc.  The downunder studs take a significant slice of the cherry which in turn goes towards club & race sponsorships and free services for charity donations etc.  All of this will inevitably stop if the new 15% Tax is introduced.

What this means to you as a breeder, using American Ideal as an example, is:

Season 2020 / 2021 :

Advertised Service Fee  $10,000 plus GST = $11,000

Discounted Service Fee $8,000 plus GST = $8,800

New Season 2021 / 2022 

Advertised Service Fee $10,000 plus GST = $11,000   PLUS  HRA 15% STALLION TAX ($1,500)  = $12,500 Total

Discounted Service Fee $8,000 plus GST = $8,800  PLUS $1,500 STALLION TAX  = $10,300 Total

So, you the Breeder will be paying a minimum of $1,500 more for a service to American Ideal than last season - whether it is discounted or not (assuming his service fee remains the same as last season).

Ask yourself the following :

• Should breeding be subsidising racing?
• Should you be forced to breed to a colonial stallion because they are 'discounted' by being exempt from this tax?
• Should you the breeder be charged more so HRA can gain $$ for racing that they should be seeking via outside sponsorship?
• Should you be disadvantaged by stallions not being available to Australian breeders due to this tax?

Will you reduce the number of mares you breed if this tax is introduced?

Will you consider moving your mares offshore should this tax be introduced?