The Australian breeding industry "has been given a huge boost on the eve of one of its biggest sales," according to Adam Pengilly of the CANBERRA TIMES. The
Australian Tax Office is set to "overturn a controversial tax on horses
bought in this country with a view to exporting." The GST, "which was only introduced in August last year," meant
horses "bought primarily by Asian interests at some of Australia's
largest sales were subject to a tax if they were not exported within 60
days of purchase." Australian horses have "long appealed to buyers from Hong Kong,
Singapore and Macau because their racing jurisdictions require horses to
be broken in before landing there." Considering those countries
do not "often have the space or facilities for this process, most buyers
leave their yearling buys in Australia for the education process." But
this has "attracted a tax from the ATO for more than a year, positioning
the New Zealand breeding industry as a serious threat to Australian
interests." The ATO has since notified TBA and Aushorse that "it intends to scrap the
GST, allowing the overseas owners to have their horses broken in and
trialled here for up to a year after purchase before attracting a levy." The move "also keeps jobs in Australia" (CANBERRA TIMES, 12/18).
