NSWROA NIGHT RACING COCKTAIL FUNCTION – CANTERBURY RACECOURSE

As members are aware, the Association conducted a Cocktail Function to celebrate the opening of the Night Racing Season at Canterbury Park on Thursday, 3 December.

The function was attended by members, friends and supporters of the Association and, in following with the other functions held by NSWROA throughout the year, it was another “sell-out” success.

I would like to take this opportunity to thank our members for their support via membership and attendance at our functions throughout the year.

 

Some of the happy guests from
Laurel Oak Syndicates

 

(L-R) Jane Henning, Suzette Halliwell
& Christine Mathers

Our sincere gratitude to the Hon. Kevin Greene, MP, Minister for Gaming and Racing, and his staff for their attendance at the function. The 3rd of December was an incredibly busy day (with a new Premier being elected) so the Minister’s attendance demonstrated yet again his great interest and support of the thoroughbred industry.

A big thank you also to the Sydney Turf Club for allowing the Association to utilize their Directors Room for our cocktail function. The room which overlooks the Winning Post, provided our guests with a fantastic view of the action on the track whilst they enjoyed the superb food and beverages on offer.

 

The Cashman family enjoy themselves
on the night

 

The night was primarily an “informal function” but there were a couple of short addresses by the President, Ray McDowell highlighting the achievements of the Association throughout the year, a “thank you” electronic presentation to supporters and sponsors of the 2009 NSWROA Racings Night of Champions, and a raffle for our charity of choice, Redkite.

The Chief Executive of Redkite, Jenni Seaton was also in attendance at the function and was overjoyed at the success of the raffle. Ms Seton said “my thanks to the NSW Racehorse Owners Association for their continued support of Redkite”.

 

(L-R) NSWROA Director Narelle Anderson
with Jenni Seton, CEO Redkite

 

NSWROA Treasurer John Vouris and
wife Ann (second and third from left)
with some happy guests)

The cocktail function was the last event of the year for NSWROA.

The Association has had tremendous success with our functions throughout 2009 and looks forward to welcoming members to our events in 2010.

"BEST OF THE BEST” WISHES FROM LUXBET.COM

LUXBET would like to wish all NSWROA members and their families the very best for Christmas and a safe & prosperous New Year. We are also delighted to announce the continuation of two of our favorites, BEST OF THE BEST and LUXDIV - perfect bet types for punters to get the most out of the festive season racing!

BEST OF THE BEST* (aka BOB) guarantees punters get Top Fluctuation odds and the Best Tote dividend, whichever pays more! BOB is available up to 40 minutes prior to the first race on Melbourne & Sydney Saturday metro meetings.

For those punters who like to bet right up until the jump, LUXDIV* gives you the best price of Best Tote or the official on-course Starting Price (SP), whichever pays more! LUXDIV* is available on all metro meetings (excluding Perth).

And don’t forget that you can pocket 12% MORE on your winning bets by joining Luxbet’s CLUBXTRA. ClubXtra is exclusive to racehorse owners and trainers and rewards you with an EXTRA 12% win payout on top of Luxbet’s premium odds 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 open an account and register your horses with ClubXtra. Conditions apply, see Luxbet.com 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, Luxbet is helping to ensure a viable future.

*Conditions apply. See luxbet.com for details.

2010 MEMBERSHIP RENEWALS

With the 2009 NSWROA membership year almost at a close, it is now membership renewal time again. Where has the year gone !!

Last week, Membership Renewal documentation was sent to you by either email or post.

I confirm that membership fees for 2010, inclusive of GST, will remain at the same rate as last year. The “Early Bird” Membership Renewal Competition will be conducted again in 2010 with three great prizes on offer. Entry to the competition is automatic if you renew your membership by Friday 5 February 2010.

A new initiative of the Association in 2010 is the introduction of a Country Membership Rate. We are hopeful that this will assist our country friends to continue to participate in membership and will also encourage new country patronage of the Association.

The Association appreciates our members’ previous support and welcomes the renewal of your membership.

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.

By popular demand, this feature has been “upgraded” for the 2009/2010 racing season. Accordingly, hereunder are the lucky NSWROA members who had winners in November 2009:

 
Owner Meeting Horse
N & Mrs Y Begg Flemington All Silent
A & Mrs M Bish Kembla Boulevard Baron
T Burke Tamworth Never You Mind
A Cardy Goulburn (2) How Much My Love (NZ)
Shockwaves (NZ)
Randwick Wasted Emotions
A Collins Dubbo Istimaid (NZ)
E Cojuangco Flemington Turf Express
S & R Dickerson Kembla Tonk
H Dyball Canterbury Big Sai Wan
M & Mrs E Frankel Wagga Sharni's Rein
G Fraser Wyong Perfect Rhythm
D & Mrs M Frew Dubbo Grand Chime
P Friedlieb Wagga Tallawang

Gooree Pastoral Company

Randwick Devils Arcade
Rosehill Emotional Outburst
S Hardy Wellington Shyspin
G Harvey Broadmeadow Lupara
Goulburn Parfumier
Kembla Paloma (NZ)
Rosehill (2) Love and Kisses
Verballed
S Iskander Queanbeyan Introductions
J Keough Wagga Lycra Lass
R K Lees & L Hoyle Armidale Lachlan Valley (NZ)
P Leseberg Goulburn Hovell Street
P Linnegar Wagga Roly Dancer
B Livingstone Sapphire Coast Run for Office
His Excellency Nasser Lootah Randwick Bandar
  Scone Gulab Jamun
B Mackie Sapphire Coast Runaway Claim
W McNally Broadmeadow (2) Feorlan (2)
Queanbeyan Cajo Kellila
R Milne Gundagai Jewel Colours
N Mitchell Wyong Simphorian
A Moulding Port Macquaire (2) Chenkajest
Danes Bullet
J Munro Canberra Dancing Time
Hay Chasing Time
Dato Tan Chin Nam Canterbury O Danny Boy
Flemington Faint Perfume
Hawkesbury Star Ripper
Randwick Star Ripper
Warwick Farm Star Ripper
Miss K Nivison Goulburn In Awe
T O'Callaghan Goulburn Fille Majestique
Patinack Farm Racing
Syndicate
Hawkesbury Dehere Or Not
  Hawkesbury Lucy's Cash
Randwick No Evidence Needed
Sandown Marquardt (NZ)
Warwick Farm No Evidence Needed
R Pensch Grafton Fleet Baron
D Rex Goulburn Rexarena
Mrs C A Richards Randwick Tudor Magic
Ms J Ritchie Wyong Perfect Rhythm
G Rogerson Broadmeadow Master Shot (NZ)
Warwick Farm Relentless Lad (NZ)
Sheikh Mohammed Broadmeadow (3) Anschluss
Freedom March
Juveniles
Canberra Shameless
Canterbury Jerezana
Flemington (2) Trim
Purple
Gosford (2) Nonchalance
Spinney
Hawkesbury (2) Beaded
Mokhoro
Kembla Taransay
Randwick (2) Khas Kura
Mascareri
Rosehill Blackball
Sandown (2) Kidnapped
Secession
Warwick Farm (2) Pinwheel
Renaissance
P Silvestro & Ms M Continibali Rosehill Elusive Touch
P Stubbs Muswellbrook Falzzon
O P Tait Wyong The Khedive
J L Thompson Hawkesbury Umbrage
Muswellbrook Phonetics
N & Mrs A Vass Kembla Hidden Gem
T W, Mrs D, JW & Miss H Wallace Scone (2) Platinum Choice
  Select Draw
M Whitby Warwick Farm Dictatorial
Miss S Woodcock Kembla Honest Lies (NZ)
Rosehill Honest Lies (NZ)
Warwick Farm Honest Lies (NZ)
L Young Broadmeadow Seafight
 

I advise that the bold type entries recorded black type wins in November.

Speaking of black type wins, another new feature in the Newsletter is the 2009/2010 NSWROA Member’s Black Type Honour Roll which will acknowledge the success of members in the black type arena. The Honour Roll, as at 30 November 2009 is as follows:

 

2009/2010 NSWROA Members Black Type Honour Roll
Current to 30 November 2009

Race Name Horse Owner
G1 STC Golden Rose Stakes Denman Sheikh Mohammed
G1 AJC George Main Stakes Road To Rock H Dyball
G1 MRC Toorak Handicap Allez Wonder Dato Tan Chin Nam
G1 MRC Caulfield Cup Viewed Dato Tan Chin Nam
G1 MVRC W S Cox Plate So You Think (NZ) Dato Tan Chin Nam
G1 VRC Crown Oaks Faint Perfume Dato Tan Chin Nam
G1 VRC Age Classic All Silent N & Mrs Y Begg
G2 STC Premiere Stakes D/H Mentality M Crismale
G2 STC Premiere Stakes D/H Kroner (NZ) Dato Tan Chin Nam
G2 AJC Warwick Stakes Trusting Patinack Farm Racing Syndicate
G2 STC Shannon Stakes Drumbeats Sheikh Mohammed
G2 MVRC Bill Stutt Stakes Carrara F M & Mrs S Tagg
G2 AJC Stan Fox Stakes Denman Sheikh Mohammed
G2 VRC Gilgai Stakes All Silent N & Mrs Y Begg
G2 MRC Caulfield Sprint First Command L Macri
G2 VRC Wakeful Stakes Faint Perfume Dato Tan Chin Nam
G2 VRC Matriarch Stakes Purple Sheikh Mohammed
G2 MRC Sandown Guineas Kidnapped Sheikh Mohammed
G3 STC Run to the Rose Denman Sheikh Mohammed
G3 AJC Up and Coming Stakes Rarefied Sheikh Mohammed
G3 VRC Bobby Lewis Quality Swift Alliance Gooree Pastoral Company
G3 STC Research Stakes Hot Danish A E Curtis
G3 MRC Naturalism Stakes Red Lord Ms J Ritchie
G3 MRC Caulfield Guineas Prelude Demerit Sheikh Mohammed
G3 STC Gloaming Stakes So You Think (NZ) Dato Tan Chin Nam
G3 AJC Bill Ritchie Handicap McClintock G Harvey
G3 MRC Betfair Stakes McClintock G Harvey
G3 VRC Carbine Clube Stakes Kidnapped Sheikh Mohammed
LR AJC Toy Show Quality Moti (NZ) Gooree Pastoral Company
LR AJC Show County Quality Swift Alliance Gooree Pastoral Company
LR MVRC Mitchell McKenzie Stakes Carrara F M & Mrs S Tagg
LR MRC The Heath First Command L Macri
LR WRC Mona Lisa Stakes Moti (NZ) Gooree Pastoral Company
LR VRC Henry Bucks Plate Carrara F M & Mrs S Tagg
LR NJC Tibbie Stakes Moti (NZ) Gooree Pastoral Company
LR AJC Angst Stakes Illuminates G Harvey
LR AJC Breeders Plate Run For Wilson Patinack Farm Racing Syndicate
LR VRC Paris Lane Stakes Raheeb Patinack Farm Racing Syndicate
LR AJC Brian Crowley Stakes Love Conquers All N Moraitis, AM
LR AJC City Tattersalls Club Cup Bid Spotter G Rogerson & G Harvey
LR MRC Jayco Stakes Kidnapped Sheikh Mohammed
LR VRC TCL Electronics Stakes Trim Sheikh Mohammed
LR VRC Myer Spring Fashion Stakes Turf Express E Cojuangco
LR HRC Yalumba Wines Cup Beaded Sheikh Mohammed
LR MRC Snowhite Stakes Marquardt (NZ) Patinack Farm Racing Syndicate
LR MRC Triple M Stakes Secession Sheikh Mohammed
LR HRC Gosford Gold Cup Spinney Sheikh Mohammed

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

RACING NSW COUNTRY AWARDS FOR EXCELLENCE

The 2009 Racing NSW Country Awards for Excellence were held at Royal Randwick Racecourse on 27 November 2009 with a large audience in attendance.

The awards give recognition to individuals and clubs who have gone above and beyond in their efforts to improve and develop NSW Country Racing.

In addition to the usual awards presented on the night, a Country Owner/Breeder Award was awarded for the very first time. This award acknowledges the contribution of a country owner and/or breeder who has enjoyed success in country racing during the year.

 

NSWROA President Mr Ray McDowell was the guest presenter for this award which went to Mr Joe Russo.

The other award winners for 2009 were:
Simon Nivison Special Achievement Award – Gowan Williams
Country Horse of the Year Award – Battlefield
Premier Country Race Club Award – Clarence River Jockey Club
Most Popular Feature Race Meeting Award – Albury Racing Club
Regional Race Club Award – Murrumbidgee Turf Club
Supporting TAB Club Award – Moruya Jockey Club
Community Race Club Award – Louth Turf Club
Outstanding Achievement Award – Tuncurry-Forster Jockey Club
Country Trainer Award – Neil Godbolt
Media Award – The Daily Examiner
Leading Country Jockey – Greg Ryan
Leading Country Apprentice Jockey – Tim Bell

Our congratulations to all award winners, finalists and nominees for their fantastic efforts during the 2009-2009 season.

BOBS & BOBS EXTRA UPDATE

The month of November saw another record set for BOBS bonuses – a total of 76 won, worth $488,750. In the first four months of the 2009-10 season BOBS payments have come to $1.77 million, so owners who nominate their horses for BOBS are certainly reaping the benefits.

It’s also good to see that this extra prizemoney is being spread throughout NSW, and it certainly makes it much more cost effective to run horses at country meetings.

Sheikh Mohammed leads the owners list with 16 BOBS bonuses worth $145,000, followed by Patinack Farm (10 bonuses, $80,000) and Geoff and Beryl White/Invermien P/L (5 bonuses, $40,000).

Among the stallions Hussonet was leading by prizemoney ($90,000 from 11 bonuses), followed by More Than Ready ($85,000 and 8 wins), Mossman ($82,500 and 10 wins), Redoute’s Choice ($80,000 and 9 wins), Fastnet Rock ($75,000 and 6 wins) and Commands ($71,250 and 13 wins).

It will be really interesting to see what happens this time next year as BOBS Extra will have been paying bonuses for 4 months and we’ll be able to compare figures for 4-year-old milers and middle distances horses against those for juveniles.

With the yearling sales season about to begin I hope there will be additional interest from potential owners in purchasing horses which are likely to race on as older horses over longer distances. BOBS Extra will reward owners’ patience!

For further information please contact:
John Gatfield,
BOBS Executive Officer,
Racing NSW,
(02) 9551-7574,
jgatfield@racingnsw.com.au

2010 YEARLING SALES

With the 2010 Yearling Sales almost upon us, I thought it was timely to obtain some “tips” for members when purchasing yearlings.

Paul Carrazzo from Carrazzo Consulting and Kingsley Edwards from Gow Gates Insurance have kindly provided the information under for members.

Our best wishes to those of our members, both buying and selling yearlings at the 2010 sales.

FIVE TIPS BEFORE BUYING YOUR FIRST YEARLING

Our good friend and Racing’s Night of Champions supporter, Paul Carrazzo of Carrazzo Consulting, has provided his views on the abovementioned issue.

I’m sure there are many of you out there contemplating your first yearling purchase in the months ahead. Good luck to all of you and enjoy the ride!

However, what many overlook is the tax considerations that should be considered before the first investment is made – for many this investment can be in the many thousands of dollars. Get the tax ins and outs of this investment wrong and you can imagine the tax that may find its way to Wayne Swan instead of remaining in your bank account….

To try and get you all off on the right tax note, I provide below 5 important tips for new buyers of yearlings.

Tip 1: Find out - are you a business or hobby?

This is a crucial question as it will determine whether:

1. Your activities will be subject to income tax. Especially crucial as tax losses may be incurred in the formative years and a deduction for these will be most welcome; and

2. Your activities will be eligible for GST registration. GST is generally levied on the sale of horses and everyday maintenance and training expenses, thus registration will allow the claiming back of these GST amounts.

ATO tax ruling TR 2008/2 is a good reference in determining this issue. If wanting to start a tax business, I would also draft a Business Plan demonstrating how you will be profitable in the future as it will help enormously with any ATO review of your activities.

Tip 2: If you are a “hobbyist”, consider Capital Gains Tax (CGT) exemption

There is a popular myth out there that a hobby owner does not pay CGT on the profitable sale of a horse. This is simply not the case.

However, there can be some joy if proper planning takes place. Under the CGT laws, a racehorse (or share in a racehorse) acquired for $10,000 (inc. GST) or less is exempt from CGT when sold.

Accordingly, if buying a horse with your spouse or partner, give consideration to joint ownership if it means that your respective shares cost less than $10,000 each, e.g. if a horse costs $19,250, it should be owned 50/50 so each person has a cost base of $9,625 (50% @ $19,250).

Tip 3: Use the right tax structure

If you are a tax business and can take advantage of tax losses in the early years, give thought to buying in a structure where these losses can be used immediately to offset against your other income. e.g. a partnership of you and your spouse/partner or in your own name. N.B. If asset protection is your main priority, this may not suit.

If buying as a “hobbyist”, give thought to buying jointly to take advantage of the CGT exemption (see above). Furthermore, be mindful that buying in a company will not give you access to the general 50% CGT discount.

Lastly (and this is often overlooked), a racehorse (i.e. a personal use asset) held by an individual does not get counted in determining if your net asset value is within the $6 million requirement so as to enable access the CGT Small Business Concessions.

Tip 4: Losses may not be automatically deductible - review

Even where you meet the tax business criteria at Tip 1, a tax loss may not be automatically deductible if you do not meet the “Non-Commercial Loss” rules, thus I urge you and/or your adviser to review these rules prior to entering the market.

If your “Adjusted Taxable Income” (ATI) is less than $250,000, four objective tests need to be met before a loss deduction can be claimed or special grounds for relief are met (see below).

Per the latest 2009 Budget, if ATI is over $250,000, the loss cannot be claimed immediately unless a special viability request is approved by the ATO or special circumstances prevented a profit from occurring.

Tip 5: Have your buying structure ready

Under the GST “attribution” rules, GST can only be claimed by the entity that acquired the horse.

Accordingly, a tax business should have the appropriate structure ready before you buy the horse(s). I have often seen instances where a horse is acquired by an individual and in the ensuing weeks/months, the structure is set-up to ultimately hold this horse and other tax business horses acquired. However, as the horse was acquired by the “hobby” individual, no GST can be claimed on the original purchase.

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

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.Prepared by:

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
Web Site: www.carrazzo.com.au

INSURING YEARLING PURCHASES

Our good friends and corporate partner 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:

Not many people drive a car out of the showroom or buy a house without insuring it. These new assets are insured to protect this financial investment, so it makes sense for yearlings purchased in the sale ring to be likewise insured, in the unfortunate event that the horse dies, to reduce the impact of that financial loss.

This is particularly so given the death of a yearling within one year of purchase is far more likely than a house burning down or a car being written off. With the yearling sale season for 2010 commencing in the first week of January, it is thus an appropriate time for intending purchasers to consider insurance as an essential part of buying a yearling.

The Lloyd’s equine insurance policy covers the owner for the death of the horse due to accident or illness. It includes the horse being put down if it is injured or becomes sick and the vet certifies that the horse’s suffering is incurable and so excessive that immediate destruction is imperative for humane reasons. In addition, the policy covers theft of the horse.

Cover under the policy may also include the following which are of particular benefit to yearling owners: transport anywhere within Australia (including yearlings from sale to their new home which may be a considerable distance such as an interstate trip); and surgery conducted by a qualified veterinarian under local or general anaesthetic (including gelding which commonly occurs in the ensuing 12 months).

The policy is intended to indemnify the owner for loss of their asset by paying the horse’s fair market value at the time when the incident occurred which resulted in the claim being made. The premium paid by the owner for the insurance policy is calculated as a percentage rate of the Sum Insured. The Sum Insured should represent the fair market value at any given time and is the maximum amount the policy will pay out in the event of a claim.

Fair market value for yearlings bought at sale is generally considered to be their purchase price until they have their first start (provided no circumstances arise which substantially alter their worth in the interim). After their first race, the Sum Insured should therefore be reviewed in view of the ability shown and its performance.

When purchasing a horse at public auction, it is a condition of sale that they are presented as sound, so a Veterinary Certificate is not required to satisfy evidence of good heath. Risk passes from the vendor to the purchaser at the fall of the hammer. It is therefore prudent for those intending to buy at a yearling sale to make arrangements with their insurance broker beforehand for “Fall of Hammer” cover whereby any purchases are covered immediately from when a lot is knocked down to the new owner.

Yearlings in the 12 month period after purchase are exposed to a unique set of risks including the new experiences associated with breaking-in and training, as well as spending extended periods in a stable, which all consequently carry a greater risk than those for seasoned racehorses. Despite this higher risk profile, the premium rate charged is lower than for racehorses, making such insurance comparatively more affordable and better value for the owner.

The aim of yearling purchasers is to buy a future champion, however before any horse has the opportunity to achieve this goal, they face a host of risks, especially those encountered as they are introduced to their racing career. A worthwhile tool on that journey from sale ring to racing is insurance, providing peace of mind for owners in the knowledge that their financial loss is limited if their horse dies in this high risk period.

For more information on this subject, please contact Kingsley Edwards, Thoroughbred Insurance Manager at Gow-Gates on (02) 8267 9940 or kedwards@gowgates.com.au.

Disclaimer: The information in the above article is intended as a guide only and should not be relied upon without reading the policy wording and seeking independent professional advice.

NSWROA OFFICE CLOSURE

Members are advised that the NSWROA office will be closed for the holiday period from Monday 21 December 2009 to Friday, 15 January 2010, both dates inclusive.

SEASONS GREETINGS

In closing, may I take this opportunity on behalf of the NSWROA Committee, to wish members and their families all the very best for the festive season.

Yours in Racing
Ray McDowell,
President

11 December 2009

STOP PRESS – THE MAGIC MILLIONS TAX SEMINAR

For those members lucky enough to be on the Gold Coast in early January 2010, I advise that Paul Carrazzo will be conducting his very popular tax seminar on 4 January at the Magic Millions Sales complex. For further details on the seminar please click here or telephone Carrazzo Consulting on (03) 9329 7044 or visit the website www.carrazzo.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