Tasracing will increase code funding by nine per cent or $2.846 million.
The increase – agreed to by the Tasracing Board at its most recent meeting – is on top of the 4.38 per cent increase announced in January this year.
Tasracing CEO Paul Eriksson said the decision to further increase code funding follows continued strong racing revenues driven by turnover increases of eight per cent.
This increase means there has been 64 per cent increase in code funding since 2015/16 and 39 per cent since 2018/2019.
At the same time, Tasracing has proposed a change in the Code Funding model which was discussed at the recent quarterly Industry Code meetings.
Mr Eriksson said the first component of the model would provide certainty of funding for all Codes, covering CPI increases and be affordable to the industry to reduce the potential risk of future funding cuts.
“Under the new model, existing funding levels will be maintained as a minimum thus providing all three Codes with a high degree of certainty looking forward,” he said.
“The second component is the creation of a growth fund to invest in revenue growth opportunities directly related to racing.
“The codes will be consulted to identify opportunities that improve Industry performance and that grow overall revenue return.”
Mr Eriksson said the proposed new model would run as a pilot for two years and then be reassessed.
“Under the proposed model, eight per cent or $2.530 million would be provided to the codes directly – an additional $1.382 million to Thoroughbreds, $664,000 to Harness and $485,000 to Greyhounds,” he said.
“The balance of the increase – one per cent or $316,000 – will be shared between the three codes on initiatives to grow racing revenue.”
Prior to the introduction of the increase, Tasracing will consult directly with industry about its specific detail.