The Eureka! COUNTING THE COST
11th May 2022
By Admin.
Like so many governing bodies, HRA seems to think that just by shaking the tree, money will fall into their lap (that's why they all love taxation so much).
And once HRA got it into their head that a TAX on Stallion Services was "a good idea" there was simply no stopping them - completely ignoring the fact that this particular 'tree' was already almost bare.
So, here at The Breeders Voice, we thought we would calculate exactly how much they are likely to raise if this 'tax grab' comes to pass, and exactly where this money shall end up after having been ripped from breeders' pockets.
Taking the 2021 Breeding Season as a benchmark, we know that TWELVE (12) Shuttle Stallions look likely to be impacted - and that, based on their 2021 advertised service fees, their 2021 service numbers - massaged by historical 'live foal' data (for each stallion), and applying the suggested TAX of 8% - HRA will garner AUD 565,692 from this cohort (or $450 for each and every foal!).
And then, in 2021, here in Australia we had access to Frozen Semen from another ELEVEN (11) 'Imports' - ignoring the smattering of long-deceased stallions, where there is still the odd straw or two available. This group, due to significantly lower service numbers (412 vs. 1255), and of course, a markedly lower 'live foal' success rate, will generate 'just' AUD 378,785 in taxation revenue - despite a far higher (15%) percentage levy applying - this figure representing $732 per foal!
It shall be interesting to learn HRA's justification for applying different rates of tax to different stallions - chilled versus frozen - if ever they publish a full list of terms and conditions. It scarcely seems legally justifiable.
Then to this, we additionally have to add the 'Stallion Registration Fee' - following proposed changes to the Stud Book - which will be either AUD 64,000 if it applies to ALL stallions (including 'imports') OR AUD 51,000 if levied only on locally owned and domiciled stallions.
So, all up, 'the tree' is expected to cough up something in the order of ONE MILLION DOLLARS ... Why? Just so HRA officials could 'assure' potential Eureka! Slot Holders that 'their investment' was being underwritten/guaranteed by HRA (read the Breeding Industry) as part of their 'Gala Eureka! Launch'.
But then, in the next breath, and in the weeks following, we are told there is an overwhelming demand for slots ("competition is fierce" etc.) ... so clearly, in essence, there was never a need to 'underwrite' or give assurance(s) to potential slot holders. Go figure!
Indeed what should occur NOW, is an auction - or public tender - a process by which the nine remaining 'slots' are distributed to the highest bidders.
Perhaps, after this, we shall find that there is absolutely no need for a crippling TAX ON BREEDERS after all? Who knows ... and will HRA ever let us discover the truth?
But even more frightening for our breeding sector is the fact that today, during an interview on SEN radio, HRA's CEO Mr. Andrew Kelly boldly stated that the authority would not hesitate to raise such Stallion Taxes - in the future - "if that is what it takes to sustain The Eureka!".
So here we have an authority hell-bent on staging "the World's Richest Harness Race" AT ANY COST - with little or no regard for the real stakeholders, or the industry at large. It is an utter disgrace!
And, don't for a minute, be fooled into believing that this is the world's first-ever $2 million Harness Event. Oh no. Meadowlands' Woodrow Wilson Pace (for 2-yo's) carried a purse of USD 2,161,000 in 1984 - when won by Nihilator; and prior to that, the stake pool was USD 2,011,00 when taken out by Land Grant in 1980. But today this iconic race no longer exists -- the last having been staged in 2012 when Captaintreacherous was victorious. And the purse for that last one? ... a mere USD 309,500, the smallest purse since it was first held in 1977. So, it could be argued that its death knell was the act of throwing too much money at it - because such purses are simply not sustainable! But are the buffoons at HRA able to read, and understand history? Seems not! And despite admitting that 'the responses we've received from the breeding sector - in response to the stallion tax - were absolutely predictable' they intend to push ahead regardless.
It is our opinion that this madness can only be stopped if each and every breeder - across each and every State - actively lobbies their State Controlling Body to forcibly tell HRA that there is little or no support for such a crippling tax, and they must resile from its implementation immediately.
AND, PLEASE SIGN OUR PETITION AGAINST THIS TAX, NOW! SILENCE IS NO LONGER AN OPTION.
... and have YOUR VOICE HEARD.
