Star Entertainment Resolves Long-Running Tax Dispute with ATO
2026-07-09
Source: Yogonet
Star Entertainment Group has settled its long-standing tax disputes with the Australian Taxation Office concerning GST and withholding tax on past junket operator payments. The agreement includes a refund of AU$33 million to Star, resulting in a AU$55 million charge for the company in FY2026, and is part of its ongoing efforts to resolve compliance issues.
Star Entertainment Group has announced the resolution of its protracted tax disagreements with the Commissioner of Taxation concerning the Goods and Services Tax (GST) and withholding tax applied to payments made to junket operators in previous years. The Australian gaming operator disclosed the settlement in a Tuesday filing with the ASX.
As part of the agreement, the Commissioner has returned AU$33 million (US$22.77 million) of the AU$88 million (US$60.72 million) that Star had previously remitted towards the disputed tax amount. Consequently, Star Entertainment will record a charge of AU$55 million (US$37.95 million) in its financial results for the year ending June 30, 2026.
The core of the dispute involved the GST treatment of rebates provided to junket operators between October 2013 and August 2017. Additionally, it covered the methodology for calculating withholding tax on these payments from July 2014 to June 2020. The Australian Taxation Office (ATO) had initially claimed that Star underpaid AU$158 million (US$109.02 million) in GST and an additional AU$8.4 million (US$5.80 million) in withholding tax related to these junket rebates.
Star Entertainment had consistently challenged the ATO's interpretation of tax law and initiated proceedings in the Federal Court in 2023. The two parties subsequently engaged in mediation, which ultimately led to this settlement. The company had ceased all engagements with junket operators in October 2020.
This resolution marks another step in Star's broader strategy to address past compliance issues and restore its suitability to operate casinos in New South Wales and Queensland. The company is actively working with regulators, including submitting a comprehensive plan to the NSW Independent Casino Commission (NICC) detailing its path to regaining full suitability, especially following a recent change in its controlling ownership.