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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:
- 103 South East ($384,057 - tender #51) – minimum acceptable price $324,954 (last tender $277,101)
- 35 Coastal ($183,494 - tender #51) – minimum acceptable price $166,897 (last tender $153,839)
- 8 Western ($17,061 - tender #45) – minimum acceptable price $40,000 (last tender $40,000)
Pub Authorities
In the final 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 is still encouraging supply in all regions. The South East Region has had the largest supply since July 2013, Coastal Region has an average supply (over the past three years) and the long awaited supply for the Western Region has finally returned. Prices in the South East had plateaued last tender and if history repeats (with a large supply) we will see prices drop by 10-12%. The Coastal Region price eased by 9.3% and with reduced supply this tender, I suspect the value will remain roughly steady, albeit softer, assuming Townsville based restocking of gaming rooms mostly complete. The Western Region finally has some supply after no supply since July 2020, last time this happened the value came back on at $52k in Tender #32 in March 2016.
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 - AGAIN), Ground Floor, 410 Ann Street, Brisbane prior to 4pm Wednesday 10 May 2023.
Historical data on prior tenders can be found here.