2010 RACING’S NIGHT OF CHAMPIONS

Before a huge crowd with a backdrop of glitz and glamour, Melito was named the Luxbet.com NSW Champion Horse of the Year at the New South Wales Racehorse Owners Association’s (NSWROA) 2010 Racing’s Night of Champions.

This prestigious event, held at The Grand Pavilion at Rosehill Gardens which was in aid of Redkite - Australia’s leading cancer support charity, was abuzz with excitement with “top fields” in contention for all the awards.

The award winners for the 2009/10 season were:

Luxbet.com NSW Champion Horse of the Year
Melito

NSW 2 Year Old of the Year
Pressday

NSW 3 Year Old of the Year
Melito

NSW Sprinter/Miler of the Year
Rangirangdoo (NZ)

NSW Middle Distance Horse of the Year
Metal Bender (NZ)

NSW Stayer of the Year
Jessicabeel (NZ)

Queen of the Autumn
Faint Perfume

NSW Country Champion Horse of the Year
Sniper’s Bullet

NSW Provincial Champion Horse of the Year
Brilliant Light

The Bart Cummings Medal was taken out by Nash Rawiller making it a double celebration for him on the night as he also picked up the George Moore Award for the Sydney Premiership Jockey.

Other awards to be presented included the T J Smith Award (Peter Snowden), the Theo Green Award (Tommy Berry) and the NSW Strapper of the Year (Melissa Williams).

David Campbell, the feature artist for the evening, opened the function in spectacular fashion when he literally “came out of the dark” and in no time at all, had the large crowd in the palm of his hand.

Returning to the stage after the awards ceremony, he continued to enthral guests with his unique and masterful style.

NSWROA President, Mr Ray McDowell said “on behalf of Redkite and NSWROA, I would like to thank everyone for attending this incredible event which showcases the very best of the NSW thoroughbred industry. My thanks also to our sponsors – we greatly appreciate your support. Congratulations to all winners and I look forward to seeing you all again at the 2011 Racing’s Night of Champions.”

FROM THE PRESIDENT’S DESK

Well, what more can I say about Racing’s Night of Champions that hasn’t been said before!!

It is truly THE event when it comes to racing awards nights. I know I am biased on this issue but who could blame me?

From the moment the “lights dimmed” and David Campbell started singing, you just knew that this night was going to be something special and the best we have ever had.

So what makes this night just so good? I have no doubt it is the people behind the scenes that go that “extra yard” to ensure that guests will never forget the experience of attending Racing’s Night of Champions.

I extend my sincere gratitude to Kelly McLean and her team at Redkite, Melissa Momitsas from Arinex Pty Limited, our event managers, who was cool and calm under extreme pressure, Sharon Hunt our Executive Officer who I depend upon so much and the incredible Darren Farnham from Network 10 whose skill and expertise is surely unrivalled.

I would also like to thank again all of our sponsors and prize donors for their support of this wonderful function and look forward to their participation again in 2011.

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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.

By popular demand, this feature was upgraded for the 2009/2010 racing season. Accordingly, hereunder are the lucky NSWROA members who had winners in July 2010:

CARRAZZO TAX FILE - WHAT IS A HORSE TAX BUSINESS?

Easily the most frequently asked question asked of myself and the team at Carrazzo Consulting is: “Are my horse racing/breeding activities a business for tax purposes”?

This is understandable as the answer to this question will determine:

• Whether horse expenses are deductible; and
• Whether a horse activity is eligible for GST registration.

Given that many of you are now in the process of gathering your tax records to do your 2010 tax returns, I thought this was an opportune time to provide you with a current update on this crucial horse tax issue.

For your reference, I list below the primary factors the Australian Tax Office (“ATO”) wants demonstrated for a business of thoroughbred racing/breeding to be accepted:

• whether the activity has a significant commercial purpose or character;
• whether the taxpayer has more than just an intention to engage in business;
• whether the taxpayer has a purpose of profit as well as a prospect of profit from the activity;
• whether there is repetition and regularity of the activity;
• whether the activity is of the same kind and carried on in a businesslike manner such that it is directed at making a profit;
• the size, scale and permanency of the activity.
• existence of a breeding property;
• if the activity started with limited numbers, is their consistent growth in the scale of the activities (e.g. increase in mare numbers and/or foals);
• whether the activity is better described as a hobby, a form of recreation or a sporting activity;
• prior horse industry experience;
• the keeping of proper records;
• the existence of a business plan evidencing long-term viability;
• time expended on the activity;
• are mares being regularly serviced;
• progeny must be sold on a commercial basis;
• stallions used need to have market appeal (commerciality);
• is progeny being regularly sold in order to generate a profit;
• are stallion rights (if applicable) being utilised;
• registration of a business name;
• establishing a separate bank account;
• the use of experts and consultants; and
• does the taxpayer have control of the stock?

N.B. You need not demonstrate all of these factors, however the existence of a horse taxation business is enhanced by the activity demonstrating as many of these factors as possible.

It should also be noted:

• It is very difficult to have a “stand-alone” racing activity (i.e. without integrated breeding activities) accepted as a “business” with the ATO;
• Having the horse activity conducted via a trust or company does not automatically mean it will be accepted by the ATO;
• No longer does a breeding activity need six quality mares to be accepted as a business; and
• An activity with losses can be accepted if it has been the result of “unforeseen events”, e.g. drought, EI, mare infertility, stock injuries/defects/deaths etc.

I hope this provides you with the guidance you need and, importantly, tax savings result for the 2010 tax year and into the future.

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

Prepared by:

PAUL CARRAZZO CPA
CARRAZZO CONSULTING CPAs
22 BLACKWOOD ST, NORTH MELBOURNE VIC 3051
TEL: (03) 9329 7044
FAX: (03) 9329 8355
MOB: (0417) 549 347
E-mail: paul.carrazzo@carrazzo.com.au
Web Site: 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.

NSWROA RACE SPONSORSHIP DURING COFFS HARBOUR CUP CARNIVAL

As members might recall as part of the Association’s commitment to support our country colleagues, NSWROA sponsored the NSW Racehorse Owners Association Maiden Handicap over 1000 metres at beautiful Coffs Harbour on Sunday 25 July 2010.

The event was taken out by One Tiger (Tiger Hill (IRE)-Monetary (USA)) who is owned by D G Hodge, D S McCudden, Mrs T L Schmidt & C Pickering and trained by Glen Hodge from Pringle’s Way with Our Flair in third position.

Sunday 25th July was NBN Community Cups Day and the first day of 2010 Coffs Harbour Cup Carnival. Held over a three day period the Carnival continued on Wednesday 4 August with the Sportsmans Race Day and concluded on Thursday 5th August with the 2010 Coffs Harbour V8 Gold Cup Day.

The winner of the feature race of the Carnival, the Coffs Harbour V8 Gold Cup, which had $70,000 in prizemoney on offer, was Mossurmi (Mossman-Nalurmi) who is trained at Warwick Farm by Marc Conners. Long Journey Home and Slick Sniper took out the minor prizes.

For further details on racing in Coffs Harbour, visit the Coffs Harbour Racing Club website at www.coffsracingclub.com.au

BOBS & BOBS EXTRA UPDATE

The 2009-10 season set another record with $6.8m paid in cash and another $2.1m in Double-Up vouchers for the purchase of further NSW-bred yearlings.

• 1152 bonuses were won during the season, an increase of 96 on the previous year. They were valued in cash terms at $7,913,750.
• The leading 15 sires by value of bonuses won come from 7 different studs. All but three of these stallions are Australian-bred.
• 2605 two-year-olds were entered for BOBS 2009 with 857 of those nominated for BOBS Extra as well.

The first BOBS Extra bonuses were won on at Hawkesbury and at Coffs Harbour on 5 August, in both cases for success in 1600 metre events. The honour of the very first goes to the Tim Martin-trained Gee Eff Cee – named for the Global Financial Crisis – which is raced by a group of friends headed by Nick Buckland.

As this season progresses it will be interesting to compare BOBS Extra winners and their breeding with those horses winning BOBS bonuses.

The top 10 horses in 2009-10 by value of BOBS bonuses won are listed below.

As might be expected those stallions which led the general sires’ premiership during the 2009-10 season were also prominent as sires of racehorses winning BOBS bonuses.

For the third season in succession Sheikh Mohammed led the table of owners winning BOBS bonuses, by both number and value.

Don’t forget – 1 September 2010 is the deadline to nominate your 2YOs for both BOBS and BOBS Extra. There is no late entry for BOBS Extra so if you miss this deadline, you’ll miss the opportunity to win bonuses after your horse turns 4YO.

And for those of you who breed thoroughbreds, we now have the Racing NSW BOBS 2013 Sire Guide available – a 48-page full colour booklet listing BOBS nominated stallions for this year’s breeding season, together with all the information you need to understand why BOBS and BOBS Extra are so important to owners. It’s free – just email bobs@racingnsw.com.au or phone (02) 9551 7574 and we’ll put one in the mail to you.

For further information please contact:
John Gatfield,
BOBS Executive Officer,
Racing NSW,
(02) 9551-7574,
jgatfield@racingnsw.com.au

UPGRADE TO AUSTRALIAN JOCKEY CLUB’S OWNERS LOUNGE POLICY

I advise members that the Australian Jockey Club have updated their Owners Lounge Policy.

In line with industry practice and many metropolitan clubs, the current Non-winners room availability to owners and trainers will be extended beyond just their own race so when you have used your owners’ entitlement to food and beverage for your race, you may purchase additional drinks and stay on during the day. Winning owners can also avail themselves of this facility as well and join their friends during the day.

The new daily owner’s tickets will be issued from Wednesday 4th August, which will have detachable food and beverage entitlements on the same ticket, which are surrendered at the bar. After that owners can continue to purchase from the bar and stay for a day. Replay footage and current races will be screened and complimentary tea and coffee facilities will be available all day.

If you require further information regarding this upgrade to policy, please visit the AJC website under the Owners section at http://www.ajc.org.au/racing/page.aspx?p=64

CONTACT DETAILS FOR MEMBERS

Have you recently moved, changed your postal address or obtained an email address? If so, it would be greatly appreciated if you could contact the office in order for our records to be updated.

Yours in Racing
Ray McDowell, President
20 August 2010