The stage was set for a "Grand Affair"

 

Racing's Night of Champions 2009

2009 RACING’S NIGHT OF CHAMPIONS – A GRAND AFFAIR

In a night of glitz and glamour and before a huge crowd, Theseo was named the Luxbet.com NSW Champion Horse of the Year at the New South Wales Racehorse Owners Association’s (NSWROA) 2009 Racing’s Night of Champions.

This prestigious event, held at The Grand Pavilion at Rosehill Gardens which was in aid of Redkite - Australia’s leading cancer support charity, was at “high octane level” with excitement as “top fields” were in contention for all the awards.

 

The proud connections of Theseo

 

Luxbet.com NSW Champion Horse Of The Year

The award winners for the 2008/09 season were:

Award
Winners
LUXBET.COM NSW CHAMPION HORSE OF THE YEAR Theseo
NSW 2 YEAR OLD OF THE YEAR Manhattan Rain
NSW 3 YEAR OLD OF THE YEAR Samantha Miss
NSW SPRINTER/MILER OF THE YEAR Takeover Target
NSW MIDDLE DISTANCE HORSE OF THE YEAR Theseo
NSW STAYER OF THE YEAR Zavite (NZ)
NSW COUNTRY CHAMPION HORSE OF THE YEAR Takeover Target
NSW PROVINCIAL CHAMPION HORSE OF THE YEAR Samantha Miss
 

The Hon. Kevin Greene (l), Kingsley Edwards from Gow Gates (r) with Kris Lees (c) collecting the Samantha Miss 3yo award

 

Joe Janiak collecting the Country Champion
Horse of the Year trophy for Takeover Target

NSWROA were delighted to present the Industry Recognition Award, a special award to honour an outstanding contribution made to the industry, to Mr Ian Craig. The crowd rose as one to applaud Ian, who recently retired from race calling after some 44 years service.

The inaugural Bart Cummings Medal was taken out by Hugh Bowman making it a double celebration for him on the night as he also picked up the George Moore Award for the Sydney Premiership Jockey.

Other awards to be presented on the night included the Queen of the Autumn Award (tied award Belong To Many and Hot Danish), the NSW Broodmare of the Year (Shady Stream – dam of Takeover Target and Predatory Pricer), the T J Smith Award (Gai Waterhouse) and the Theo Green Award (Daniel Ganderton).

 

Mr Ian Craig winner of the Industry
Recognition Award

 

Feature artist Tim Freedman and band

The entertainment for the night was simply outstanding with Aria Award Singer/Songwriter Tim Freedman’s feature performance proving to be a big hit with the audience as was the after dinner band, the Gotham City Horns who had everyone up on their feet and dancing.

NSWROA President, Mr Ray McDowell said “on behalf of Redkite and NSWROA, I would like to thank everyone for attending this special event which showcases the very best of the NSW thoroughbred industry. My thanks also to our sponsors – your support is greatly appreciated. Congratulations to all winners and I look forward to seeing you all again next year.”

Luxbet’s ClubXtra Limited Offer to NSWROA Members Closing Soon

A reminder that, as a NSWROA member, you are invited to join ClubXtra with our exclusive corporate wagering partner, Luxbet.com.

ClubXtra is exclusive to owners and trainers and rewards you with a 12% win bonus on top of Luxbet’s premium odds (which include Best Tote or Top Fluctuation) when you bet on a horse you own or train. To take advantage of the ClubXtra 12% bonus, you need to be a Luxbet.com account holder. Visit Luxbet.com for details on how to register your horses with ClubXtra

For those of you who don’t have an account with Luxbet.com, here’s a special limited offer for NSWROA members.

Open a new account now with Luxbet.com now, and they’ll credit you with an additional 20% bonus on your first deposit amount, up to $1000. Simply enter promo code NSWROA2 on the registration form when you register online at www.luxbet.com or call 1300 LUX BET (1300 589 238). Hurry, conditions apply, see Luxbet.com promotions page for details.

Luxbet is part of Australia’s premier gambling and entertainment group Tabcorp. Luxbet.com is not only dedicated to providing punters with competitive odds, Luxbet.com is the only corporate bookmaker totally committed to returning a significant percentage of profits back into the racing industry. By supporting the thoroughbred, harness and greyhound racing codes, they are helping to ensure a viable future.

Open a Luxbet.com account today, and you’ll receive a 20% bonus on your first deposit, up to $1000* and make sure you register with ClubXtra to pocket 12% more on your winning payouts when you bet on a horse you own or train!

Exclusive Insurance Package for NSWROA Members

Our good friends, corporate partner and Racing’s Night of Champions supporter, Gow Gates Insurance Brokers, have kindly prepared, via Kingsley Edwards, B.Agr.Ec (Syd.), Dip.Fin.Serv. (Ins. Broking), ANZIIF (Snr. Assoc.), C.I.P., the following update on 18 August 2009:

One of the benefits of NSWROA membership is the exclusive racehorse insurance package available from NSWROA corporate partner, Gow-Gates Insurance Brokers.

This leading insurance broking firm was established over 40 years ago and has earned a highly respected reputation for the quality of its service and expertise in a number of specialised areas, including thoroughbred insurance.

Gow-Gates is proud of the close relationship held with NSWROA for the last 25 years, which was initiated by Anthony Gow-Gates who is an owner himself – his greatest success having been a part owner of the 2000 AJC Derby winner, FAIRWAY.

The insurance package offered to NSWROA members includes significantly reduced premiums for mortality cover through Lloyd’s of London. This offer is available to all NSWROA members for their ownership interests, regardless as to whether a horse is owned 100%, or in a partnership/syndicate, and covers horses currently racing or horses as yet unraced (including yearlings purchased at sale). Stallion shares, broodmares, foals and pre-sale yearlings can also be covered.

The Lloyd’s mortality cover is basically for death of the horse from any disease/illness or accident/injury, but does not cover intentional slaughter unless a vet certifies that the horse's suffering is incurable and so excessive that immediate destruction is imperative for humane reasons. The policy also covers the horse in the event that it is stolen, as well as all transits anywhere within Australia and to (or from) New Zealand.

Benefits of the policy offered to NSWROA members that are not part of the standard policy include: the death of a horse which becomes ill or injured within the period of insurance for up to 12 months after the policy expires; and surgery conducted by a qualified veterinarian under local or general anaesthetic (both subject to the policy terms and conditions).

Importantly, in addition to these cost savings and special policy inclusions, is the professional and personalised service that is provided with the package.

Should you wish to find out more about the NSWROA horse insurance package, please contact Kingsley Edwards, Thoroughbred Insurance Manager, on (02) 8267 9940 or by email kedwards@gowgates.com.au.

Gow-Gates Insurance Brokers (Australasia) Pty Ltd,
A.B.N 29 069 562 787, AFSL 245433.

Disclaimer: The information in the above article is intended as a guide only and should not be relied upon without the consulting the “Lloyd’s Equine Policy LE (Australia) LMA3069” wording with relevant endorsements and seeking independent professional advice.

WINNERS ARE GRINNERS

A WINNER – there are no better words for an owner to hear! As members are aware, as part of our membership renewal process, NSWROA requested members to forward the names of their racehorses in order for us to acknowledge their racing triumphs in our publications.

Accordingly, hereunder are the lucky NSWROA members who had winners in July 2009:

 
Name/s Course
M Angelos Warwick Farm
R Balding Hawkesbury
D Balian Grafton
B Burke Broadmeadow
Scone
F Cassarotti Coffs Harbour
A Chiswick Muswellbrook
F and Mrs C Cook * Rosehill
E Covey Randwick (K)
J R Cribb Canterbury
W Dougherty Grafton
W and Mrs D Dougherty Grafton (2)
Mrs A Emms Mudgee
J Fleming Bathurst
M Gazzoli Cowra
Gooree Pastoral Company Newcastle
Randwick (2)
Warwick Farm
G Harvey Hawkesbury
Ms J Henning Grafton
L Hoyle Ballina
Name/s Course
J Jackson Coffs Harbour
Nowra
J Keough Wagga
W Lanyon Wyong
R J Lazarus Wellington
R K Lees Ballina
Ms J S Mackay Canterbury
Hawkesbury
Warwick Farm
B W McHugh Nowra
R Milne Goulburn
N Moraitis AM Canterbury
Newcastle
Randwick (2)
Dato Tan Chin Nam Kembla
A Nightingale Canterbury
T O'Callaghan Goulburn
Moruya
Patinack Farm Racing Syndicate Canterbury (2)
Hawkesbury
Kembla
Rosehill
Name/s Course
J Poot Grafton
D Rex Wellington
Mrs C Richards Goulburn
G Rogerson Canterbury
Sheikh Mohammed Canterbury (2)
Gosford
Hawkesbury
Kembla
Randwick (4)
Rosehill
Warwick Farm (3)
Wyong (2)
G Stack Randwick (K)
J Thompson Grafton
J L Thompson Grafton
M Todd Gosford
S van Eyk Coffs Harbour
P Webb  Nowra
R Willis Bathurst
D Wilton Broadmeadow
Newcastle
D Wright Nowra
 

Including: * the Listed Civic Stakes to Hadaaf

What great results! Congratulations to all! Don’t forget to forward the names of your racehorses to the NSWROA office.

EXTRA DIMENSION AND NEW RECORDS AHEAD FOR BOBS

With just days to go before nominations for BOBS close on 1 September, Racing NSW is confident the 2009-10 season will set more records for the bonus prize money system.

At least 160 NSW-based stallions have been nominated, and that’s a record in itself. As a result almost every foal bred in NSW will be eligible for BOBS in 2012 – if you don’t choose a BOBS nominated stallion you’re doing yourself a disservice!

The introduction of BOBS Extra is proving extremely popular. Critics say we breed for speed, to the disadvantage of our middle-distance and staying ranks. But owners and trainers nominating this season’s 2-year-olds are showing strong support for BOBS Extra, with around one-third of juveniles being nominated for both BOBS and BOBS Extra. That’s a fee of $1500 for a horse to be eligible for bonuses for its entire racing career!

BOBS Extra bonuses will start to be paid from 1 August 2010, for 4-year-olds which win over 1600 metres or longer distances. Current 3-year-olds which are BOBS nominated can be nominated for BOBS Extra at a fee of $2500, and again, owners and trainers are showing their faith and paying up in large numbers.

Eventually this will lead to more events being staged over middle distances, rewarding those who buy or breed horses which are not simply speed machines, strengthening middle distance racing in NSW, and providing more variety on race day.

In 2008-09 there were 1056 bonuses won; $6.16m was paid out and another $2.27m in our unique Double Up vouchers. NSWROA member Sheikh Mohammed had the weight of numbers on his side and picked up 72 bonuses worth $685,000 – but the top individual horse honours went to the Tamworth-trained Border Rebel with 7 BOBS victories, worth $70,000.

There seems to be a mistaken view circulating that BOBS Extra will apply only to metropolitan racing - nothing could be further from the truth. BOBS and BOBS Extra are designed to support owners, trainers and breeders throughout NSW, and it’s really important that this extra prize money flows to provincial and country racing.

One concept we’re looking at already to make BOBS (and later BOBS Extra) even better is to provide double the usual BOBS bonuses for a series of selected races throughout the State in June and July, with winners – if they’re BOBS nominated – exempt from a ballot for a “BOBS-only final” in Sydney on the last Saturday in July. It’s still only a concept but one which is receiving enthusiastic support from trainers.

Total BOBS annual payments have risen from $4.9m in 2004-05, to $6.8m in 2007-08 and to a record $8.4m last season.

It’s Australia’s richest breeder-owner bonus system and it will continue to grow! Remember nominations for BOBS and BOBS Extra close on 1 September 2009.

For further information please contact:
John Gatfield, BOBS Executive Officer, Racing NSW, (02) 95517574 jgatfield@racingnsw.com.au

GST WIN FOR HOBBYISTS

If you’ve been reading my horse tax updates recently, you would have noticed there has been a common thread – all of the news had been bad! The new Budget changes, the ATO’s owners project, the D’Arcy “control” case – the negatives have had a great run lately.

Consider this release to be a welcome circuit breaker as the findings in a new tax case has given hope for the many hobby breeders and owners out there looking for a little bit of GST relief.

Some background. Under the current GST rules, the only people who are able to register for GST are those considered to be running an “enterprise”. This definition includes a person who runs an activity in the “form of a business”, hence this is why taxation businesses can automatically register for GST.

However, the GST “enterprise” definition is not a strict as the income tax definition of “business” and thus potentially many others running a “profit making” activity should be able to register. This is reflected in the GST “enterprise” definition where one of the grounds for registration is where a person conducts an activity “in the form of an adventure or concern in the nature of trade”.

“Swansea” case clarifies what is “in the form of an adventure or concern in the nature of trade”

Since the inception of the GST on 1 July 2000, the tax community has been desperate for additional guidance as to what this term “in the form of an adventure or concern in the nature of trade” actually means. There is no better way to find out than to have the meaning of the term tested in a court of law and this was duly done recently in the WA Federal Court via “FC of T v Swansea Services”. Thankfully, the result represents a win for common sense, and, of more significance, the principles are very appropriate to hobby breeders and owners, as indicated at the conclusion of this release.

Facts of “Swansea”

Swansea (“S”) was a private company whose activities consisted mainly of acquiring artworks and antiques.

Between 1997 and 2005 S spent $4.8m acquiring 225 antique items and 87 paintings, nearly all of which were kept on display at S’s two private residences. Most of the expenditure was incurred after 1 July 2000 (the date GST commenced) and the company was registered for GST. During this eight-year period only three items were sold for a net loss of $34,865.

In 2005, the ATO cancelled the company’s GST registration with effect from 1 October 2001. The ATO contended that what S was doing was not an enterprise but rather a “private recreational pursuit or hobby”.

S objected, claiming that it was carrying on an enterprise. It argued that the repetitive nature of its activities and their frequency pointed to an enterprise, as did the large sums of money expended. It stated that its investment strategy was to develop a museum quality collection which doubled in value after seven years.

S was found to be carrying on an enterprise when it originally appealed to the AAT. The AAT held that the Company’s acquisitions of artwork as a process of acquiring and consolidating a valuable collection of sound saleable artwork, in order to turn it to account profitably, including the sale of some pieces which were found to be below the requisite standard, all took place as part of carrying on an enterprise, and not only as an investment, hobby or recreational pursuit.

The AAT also held that the acquisition of goods or property with the intention of a future sale, hopefully at a profit, fell within the concept of an activity in “the form of an adventure in the nature of trade”. It said the business and commercial activities of the Company were conducted in accordance with a pre-formulated policy, coupled with a carefully devised investment strategy. The ATO appealed from this decision, arguing that the AAT’s conclusion was not open to it on the evidence. Next round, the Federal Court.

ATO appeals to Federal Court, Swansea wins again!

The Federal Court found that, objectively viewed, it was the Company’s purpose to acquire and to hold artwork and antiques with a view to selling them when the circumstances were right in order to derive a profit.

In summary, what also convinced the court of the “profit making purpose” of this activity was:

  • S had sought proper advice and consultancy in relation to its activities;
  • It always had a purpose of sale, even though there was only three sales in the period, one at a modest profit, two at a loss;
  • S had a “pre-formulated” investment strategy;
  • Detailed and accurate records were kept;
  • All artwork was insured; and
  • Its activities were characterized by system, repetition and regularity.

Lessons for hobby breeders, “pin-hookers” and owners?

a) Mare owners

There are many instances where a hobby mare owner will breed a foal for the purpose of sale, i.e. a “one-off” venture. Though the activity may not necessarily be considered a tax “business”, the fact that the activities may have the elements noted above will certainly give the breeder a strong basis for registering for GST in relation to that sale or future sales.

The hobby breeder need not own the mare either, as your general “foal-share” arrangement is often undertaken with a “profit-making purpose”.

Hobby breeders will welcome this opportunity as GST on items such as service fees, agistment, veterinary, commissions etc can be claimed back. Against that, GST must be charged on the sale of the foal. This latter point will cause no problem if it is reasonable to expect a registered person will acquire the foal.

b) “Pin-Hookers”

There also many part time “pin-hookers” of weanlings that would also welcome the Swansea case as GST can be quite an impost and cut into profit margins upon sale.

The horses are acquired for a genuine profit purpose, so what stops GST registration based on Swansea’s case?

c) Trading in racehorses

Where does Swansea sit with hobby racehorse owners? This case certainly does open up the opportunity for owners who have the primary purpose of buying racing stock for future sale to be able to register for GST. Given the difficulty racehorse owners have with trying to demonstrate a stand-alone racing businesses, this should be welcome news to players with this purpose.

However, if the owner has a history of racing horses only and sells the odd horse based on a huge offer, such facts would not normally indicate a “profit making purpose”. As in all these cases, facts are king, and you need to weigh them up carefully with your adviser prior to registering for GST.

You are welcome to contact me if you wish me to clarify or expand upon any of the matters raised in this release.

PAUL CARRAZZO CPA
CARRAZZO CONSULTING CPAs

22 BLACKWOOD ST, NORTH MELBOURNE VIC 3051
TEL: (03) 9329 7044 FAX: (03) 9329 8355 MOB: 0417 549 347
E-mail: paul.carrazzo@carrazzo.com.au Website: www.carrazzo.com.au

DISCLAIMER: Any reader intending to apply the information in this article to practical circumstances should independently verify their interpretation and the information’s applicability to their particular circumstances with an accountant specialising in this area.

2009-10 FIXTURE CARD

I am pleased to advise that NSWROA has now received its stock of “hard copy” fixture cards.

If you would like a “hard copy” of the card, simply contact the office and same will be sent to you by mail.

MEMBERSHIP MATTERS

If you are receiving this newsletter by “snail mail” and have recently obtained an email address, please advise the office of your new email address.

Yours in Racing
Ray McDowell, President
21 August 2009

STOP PRESS 1 – INAUGURAL SYDNEY RACING INDUSTRY GOLF DAY

The Inaugural Sydney Racing Industry Golf Day, organised by the Australian Racing Christian Chaplaincy (ARCC), will take place on Monday 7 September 2009 at St. Michael Golf Course at Little Bay.

Registration is from 8.30 am for a 9.15 am tee-off. Champion NSW Jockey and recent Bart Cummings Medal recipient Hugh Bowman is the event ambassador.

For further details visit the ARCC website at www.arcc.org.au.

STOP PRESS 2 – SPRING HATS AND HIGH TEA PARTY

A Spring Hats and High Tea Party, showcasing the Sydney Couture Milliners is to take place on Sunday 30 August 2009 between 2.00 pm – 5.30 pm at the Sir Stamford at Circular Quay, 93 Macquarie Street, Sydney.

Limited seats are still available to the event, which is in aid of Lou’s Place, a daytime centre for women – women in crisis who need a hand in putting lives that have bowed under the pressures of abuse and neglect back together.

Seats are $65 per person which includes sparkling wine on arrival with traditional high tea – additional beverages can be purchased.

Bookings for the event can be made with Samantha Storry on Telephone 8274 5462 samanthastorry@sscq.stamford.com.au

 

NSW Racehorse Owners Association • GPO Box 1506, SYDNEY NSW 2001
Ph: 9299 4299 • Fax: 9299 3212 • E: nswroa1@ozemail.com.au • W: www.nswroa.com.au