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By Steve Gagel, Director of Business Services and Taxation
The Qld Office of Liquor and Gaming Regulation has opened the tender for the latest round of gaming authorities (last tender and value in brackets), being:
- 44 South East ($374,471 - tender #50) – minimum acceptable price $277,101
(last tender $214,512) - 49 Coastal ($196,815 - tender #50) – minimum acceptable price $153,839
(last tender $126,997) - Nil Western ($17,061 - tender #45) – minimum acceptable price $40,000
(last tender $17,360)
Pub Authorities
In the second tender under the new OLGR provisions (under trial for 12 months from 1 July 2022) including:
- Reduction in transfer fees from 33% to 15% (better for sellers), and
- Minimum acceptable prices for tender (see above) based on weighted average of prior tender values (approx. 97.35% of the average of last three successful tenders). Not sure how the minimum acceptable price for the Western Region has increased to $40k with no market since July 2020.
It appears that the reduction in transfer fee has continued the healthy supply in both the South East and Coastal Regions. The Western Region remains dry and has not seen a market since July 2020. Demand in the South East is still high with greenfield sites still looking to fill vacant gaming rooms. The Coastal Region still is defying gravity and I am waiting for the Townsville based restocking of gaming rooms to ease which should see prices fall in the long term.
An interesting item to note is the increasing minimum acceptable prices for the South East and Coastal Regions. The reduction in the transfer fee has allowed for a ‘cheap’ window for larger groups to transfer machines around group hotels. This in turn has increased the minimum dramatically from the last tender – up 29.2% in the South East, 21.1% in the Coastal and an incredible 134.45% in the Western Region.
Timing of this “November” tender is problematic for publicans opening just three days prior to Christmas (busiest time of the year) and set to close on 11 January (down time for many publicans and their families). Timing of this tender will no doubt push out the March 2023 tender – leading to questions around the 12 month trial of the new provisions with the minimum acceptable price and reduced transfer fees. The Qld Government needs to do better with regular timing of these tenders in the future that has been out of sequence since tender 41 in April 2019 (a year prior to Covid issues).
If you intend to bid in the Pub Tender, please ensure you have lodged your completed form (along with the lodgement fee of $72) in the tender box (facsimile, post or email not acceptable) with the Public Trust Office (NEW ADDRESS), Ground Floor, 444 Queen Street, Brisbane prior to 4pm Wednesday 11 January 2023.
For more information, please click here.