SYDNEY CUP DAY LUNCHEON

The President and Directors of the NSW Racehorse Owners Association (NSWROA) would like to invite you to join them for a great day of racing – Sydney Cup Raceday at Royal Randwick – Saturday 25 April 2009. As previous attendees will confirm, the NSWROA Sydney Cup Luncheon is an event not to be missed.

The package for the day includes a sumptuous buffet luncheon and beverage package, afternoon tea, Guest Tipsters and Tipping Competition, Best Hat & Best Tie Competition, a Raffle with great prizes, race book and pen and full tote and bookmaker facilities.

The luncheon, which is held in the Vista Room, Level 5, Queen Elizabeth Stand, is priced at $150.00 for NSWROA members and $170.00 for guests, GST inclusive. BOOK NOW as numbers are strictly limited. Please note that all bookings and payments must be received by 10 April 2009.

GOLDEN SLIPPER HATS AND HIGH TEA – SOLD OUT

SOLD OUT! The Golden Slipper Hats and High Tea function to be held at the Sir Stamford at Circular Quay on 22 March 2009 has SOLD OUT. Only “wait-listing” is now available for the event. For those who have unfortunately missed out, we are pleased to advise that a Spring millinery function will be held – so make sure you book in early to avoid disappointment.

 

NEW NSWROA COMMITTEE MEMBER

NSWROA President, Mr Ray McDowell, has great pleasure in announcing that Mr Laurie Macri has joined the NSWROA Committee.

Mr Macri, an Executive Director of the Macquarie Group, has worked in the Finance and Stockbroking industries for 25 years and has been racing horses since 2004. Mr Macri fills a casual vacancy on the Committee.

Mr McDowell stated “NSWROA has been most fortunate to obtain the services of Mr Macri for the NSWROA Committee. His background in the finance sector and his great passion for racing will make a valuable addition to our Committee”.

Mr Macri said “I am delighted to be a part of the Committee of the NSW Racehorse Owners Association and look forward to working with all participants in the industry”.

 

RUDD STIMULUS – ANY TAX BREAKS FOR RACING? PAUL CARRAZZO COMMENTS

Our good friend and Racing’s Night of Champions supporter, Mr Paul Carrazzo has kindly prepared the following update to give members some idea as to where racing/breeding sits with the new tax changes.

One of the welcome initiatives to come out of the recently announced Federal Government stimulus package is the bonus tax deductions, at a rate of either 10% or 30%, available to businesses investing in depreciable assets.

Since the announcement of these initiatives in mid February, I’ve had many queries from my horse industry clients and associates as to whether they are eligible for these bonus deductions, so I now take the opportunity of explaining the specifics of the bonus, their eligibility criteria and whether commercial breeders and racehorse owners can take advantage of them.

Rate of tax bonus – 10% or 30%?

It must first be noted that there are minimum asset expenditure thresholds depending on what category of tax business you have. For businesses defined under the Tax Act as “Small Business Entities” (“SBE”), a minimum of $1,000 (exclusive of GST) must be spent. For all other businesses, the minimum spend is $10,000 (exclusive of GST).

NB. An SBE is a business with an aggregate group turnover of less than $2 million, in this year and the previous two income years. If the business has been in existence less than 3 years, only those year(s) must meet the $2 million criteria.

The bonus tax deduction for an SBE for eligible assets costing $1,000, is:
30% of the asset's cost, if the asset is acquired, begins to be constructed or is held under contract between 3 Dec 2008 and 30 June 2009, and installed for use by 30 June 2010; or
10% if acquired, constructed or held between 1 July 2009 and 31 Dec 2009, and installed before 31 Dec 2010.

As indicated above, businesses will get the higher 30% rate if the asset is acquired on or before 30 June 2009. Other businesses will be eligible to access the same concessions for assets costing more than $10,000.

The deduction will be either 10 per cent or 30 per cent of the asset's cost. When lodging its income tax return, the business will be able to claim this deduction in addition to the usual depreciation deduction in respect of the asset.

What are the eligible assets?

Specifically, the deduction will be available for depreciating assets that qualify for capital allowances.

It must be especially noted that land and trading stock are excluded from the definition of depreciating assets, and will not qualify for the deduction.

Commercial Breeders and the bonus?

Firstly, the bad news - broodmares within a breeding business are classified as trading stock and thus are not eligible for the concession. This will also apply to situations where, say, the breeder buys weanling for “pin-hooking”, such horses also being classified as trading stock.

Of course, other depreciable assets acquired in the business would be entitled to the concession, for example computers, sheds, floats, business vehicles etc.

Unfortunately, certain capital expenditure of breeders/primary producers are specifically excluded from eligibility, including installation of telephone lines, land degradation measures and the cost of installing new water facilities, e.g. dams.

Commercial Racehorse Owners and the bonus?

Plenty of confusion in this area and well worth commenting on. First and foremost, it is very “ difficult” to demonstrate to the ATO that you run a stand-alone horse racing business (without associated breeding activities). This has been a long held ATO view and was reinforced when the new horse industry tax ruling, TR 2008/2, was released last year.

If you have been successful in demonstrating this, the racehorses you acquire would be eligible assets and the tax concession would be available. Great news if you can meet this difficult ATO criteria. In the face of the current economic woes, any yearlings acquired prior to 30 June 2009 would be entitled to a bonus 30% deduction.

If you are contemplating starting a stand-alone horse racing activity and have these concessions in mind, I would certainly take appropriate professional advice as to your chances of meeting the strict ATO “business” criteria in this area. A private ruling seeking the ATO’s opinion before you start would be highly recommended. Tax ruling TR 2008/2 would be a useful reference as to the criteria required.

Racing within my breeding activity – where does this sit?

Racing activities can also be accepted by the ATO if they considered an “integral” part of the breeding activity and are, in the words of TR 2008/2, “inherently connected with it and be consistent with the furtherance of the business activity”.

What is clearly contemplated here is where a breeder decides to race a “home-bred” horse for entirely legitimate reasons, e.g. a filly to be retained for future breeding or a yearling that failed to reach a reasonable reserve.

Are these “racehorses” also eligible for the new tax concession?

Regrettably, the answer is still NO. Per TR 2008/2, such horses are considered to be part of the breeding business and are classified by the ATO as trading stock.

I’ll leave on a positive note – a breeder would be able to use the concessions on racehorses acquired only if they could establish to the ATO that they had two distinct and separate tax businesses, i.e. one of “standalone” horse racing (see above), the other a commercial breeding operation. Unlikely for the small breeder, but not impossible for the major operators.

Draft legislation to implement the investment allowance will be released for public consultation later this month.

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

PAUL CARRAZZO CPA
CARRAZZO CONSULTING CPAs

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.

ADVANCE NOTICE OF ANNUAL GENERAL MEETING

ADVANCE NOTICE to Members that the 44th Annual General Meeting of the NSW Racehorse Owners Association will be held at 6.00 pm on Tuesday 19 May 2009 at the Rugby Club, Rugby Place, Off 31A Pitt Street, Sydney.

 

SAVE THE DATE – 13 AUGUST 2009

Members are reminded to note their diaries for our signature event, the Racing’s Night of Champions, which will take place on Thursday 13 August 2009 at the Grand Pavilion at Rosehill Gardens.

 

BEHIND THE SCENES

The NSWROA Committee is constantly addressing matters that are of interest and benefit to owners.

With this in mind I am pleased to advise that following consultation with the Australian Jockey Club, NSWROA members attending an AJC meeting may now (on presentation of their NSWROA membership card) purchase a single Members’ area ticket at all AJC race meetings*.

Tickets are available on Race Day only from the General Race Course Office. Course entrance must be paid to obtain entry to the racecourse.

(* excluding Autumn and Spring Carnivals)

MEMBER RACING TOUR TO HONG KONG – CANCELLED

It is with regret that I advise that the proposed NSWROA Member Racing Tour to Hong Kong has been cancelled. Further tours will be revisited later in the year.

 

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 have had winners in January 2009:

 
Name/s Course
G Altomonte Randwick
M Angelos Wyong
V W & Mrs Y D Bates Nowra
Orange
S J Bourke Canterbury (N)
R Bramich Tumut
J O Cassim Goulburn
E Cojuangco Randwick
Rosehill
F Cook & Mrs C Cook Canterbury (N)
F Crews Rosehill
Wyong
M Crismale Sapphire Coast
S J Dickerson & R H Dickerson Nowra
Randwick (2)
Rosehill
D Dixon Canterbury (N)
J & Mrs L Durbridge Kembla
W & Mrs D Fisher Hawkesbury
A Frogley Gosford
F Galluzzo Gosford
Gooree Pastoral Company Broadmeadow (2) Gosford
Rosehill (2)
Name/s Course
ARG Gow-Gates Canterbury (N)
G Harvey Gosford
Goulburn
Kembla
Randwick (2)
M Hohos Gosford
Iskander.com Synd Canterbury (N)
Gosford
W H Lanham Moruya
W Lanyon Gosford
R M Lapointe Wyong
Laurel Oak Bloodstock Synd Canterbury (N)
RJ Lazarus Armidale
B Mackie Sapphire Coast
B McHugh Inverell
Nowra
A Menzies Gundagai
J A Middleton Warwick Farm
N F Mitchell Gosford
N Moraitis AM Kembla
Rosehill
Wyong (2)
A J Moulding Taree
Name/s Course
Ms K Nivison Gunnedah
B J O'Malley Cowra
I Patrick Broadmeadow
J Poot Broadmeadow
Ms J Ritchie Randwick
D Roswell Wyong
P Ryan Mudgee
Sheikh Mohammed Canterbury (N)
Kembla (2)
Randwick
Rosehill
Wyong
G Stack Randwick
J J Starr Wyong
Stratheden Stud Sapphire Coast
J L Thompson ## Randwick
Rosehill
H W Truscott Moruya
N and A Vass Rosehill
J Vouris Canberra
G B White AO & Mrs A B White Randwick
M Yates & Mrs P Ryan-Yates Canberra
## Both Listed Race wins to Tommifrancs
 
In February, NSWROA members recorded the following winners:
 
Name/s Course
G Altomonte Warwick Farm
Ms N Anderson Canberra
M Angelos Canterbury
V W & Mrs Y D Bates Cessnock
N & Mrs Y Begg Wyong
W Benson Grafton
R Bramich Tumbarumba
T Burke Quirindi
A Chiswick Hawkesbury
C E & Mrs M Conners Canterbury
Hawkesbury
F W & Mrs C M Cook Canterbury
Rosehill
J Corr Bathurst
Wellington
F Crews Canterbury
R & Mrs P Cribb Grafton
A Curtis * Randwick
C Dawson Randwick
C Deeb Canterbury
R & Mrs A Ellis Wyong
G & S Fischl Canterbury
P Friedlieb Wagga
Gooree Pastoral Company Broadmeadow
Canterbury
Gosford
Rosehill (3)
Warwick Farm
Name/s Course
Gundaroo Stud Synd Lismore
G Harvey Gosford
Randwick (2)
Tamworth (2)
Iskander.com Synd Canterbury
J Jackson Bathurst
I R Johnson Wyong
J Keough Canterbury
Laurel Oak Bloodstock Canberra
Queanbeyan
S Lloyd Parkes
His Excellency Nasser Abdullah Hussain Lootah Broadmeadow
B Mackie Braidwood
A Menzies Bathurst
B McHugh Quirindi
J Middleton Canterbury
Queanbeyan
N Moraitis, AM# Broadmeadow
Canterbury
Randwick
Rosehill (3)
Scone
Warwick Farm
Ms K Nivison Rosehill
Name/s Course
T O'Callaghan Bathurst
Patinack Farm Racing Synd Broadmeadow
Taree (2)
Warwick Farm
J Poot Broadmeadow
Wyong
G A Rogerson Wyong
B Rutter Canberra
P Ryan Binnaway
Sheikh Mohammed + Broadmeadow (2)
Canterbury
Gosford
Rosehill (2)
Warwick Farm
G C Smith Gilgandra
J Starr Canterbury (2)
O P Tait Goulburn
Wyong
M Walcott Moruya
T W & Mrs D Wallace, Ms H A Wallace, J Wallace Gosford
P Webb Wyong
D Wilton Broadmeadow

* a Group 2 win to Hot Danish
+ including a Group 3 win to Neroli
# including a Listed Race win to Vision and Power

What great results! Congratulations to all!

Don’t forget to forward the names of your racehorses to the NSWROA office.

PROPOSAL FROM AUSTRALIAN JOCKEYS’ ASSOCIATION

Our thanks to Members who provided feedback regarding the proposal from the Australian Jockeys’ Association. The consensus from our members was that they supported the 1% increase provided that the resulting funds are properly administered.

Further, members were of the view that the burden of supporting jockeys in this way should be shared by all those participating in the distribution of prizemoney and so should come off the top, rather than solely out of the balance left for owners.

A formal response was sent to Racing NSW along those lines.

NSWROA WEBSITE

As advised previously, the NSWROA website has undergone a much needed “make-over” but is still “under-construction”. All members are encouraged to visit the website www.nswroa.com.au

 

RACING IN HOT WEATHER – OFFICIAL POLICY

On 23 February 2009, the Racing NSW Board approved and endorsed the “Racing in Hot Weather - Official Policy”. Click here to view the document. If you would like a “hard-copy” of the document, simply contact the NSWROA office and a copy will be sent to you.

TAMWORTH JOCKEY CLUB’S AUTUMN CARNIVAL

The Tamworth Jockey Club will be conducting their 2009 Autumn Carnival on 21 March, 30 March, 11 April and 26 April 2009. The highlight of the Carnival is, of course, the Tamworth Cup, which will be run on the last day of the carnival.

Full Bar Facilities, Dining Room, Tote and Bookmakers are available on all days with gates opening at 11.00 am. There will be a free bus service available for the April 26 meeting. The club is currently offering special membership rates of $30.00 which includes a $5 betting voucher for the first 100 to join.

For further information regarding the carnival, please contact Victoria Toy, Racing Operations Manager, Tamworth Jockey Club by telephone (02) 6765 9387 or email victoria@tamworthjockeyclub.com.au.

MEMBERSHIP MATTERS

Members are requested to advise the NSWROA office of any changes to their contact details. 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. It should be noted that Members receiving the Newsletter by email receive it in its new user friendly style - html format whilst the old PDF format is used for “hardcopy” recipients

A reminder to members who have not, as yet, renewed their membership for the 2009 year. As a “not-for-profit” organisation, NSWROA relies on its membership fees. Therefore your early renewal would be greatly appreciated and thank you to those members who have already renewed.

Yours in Racing
Ray McDowell, President
17 March 2009

 
 

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