By MIKE DILLON
Sunline's Cox Plate defence hangs in the balance.
Australia's new GST laws threaten an abandonment of the Takanini champion's defence of the $A2 million Moonee Valley thriller in October.
Senior owner and trainer Trevor McKee says having to post a bond of 10 per cent of Sunline's value is just too tough and is calling an urgent meeting with his fellow owners Helen Lusty and Thayne Green.
A serious option is the cancellation of Sunline's entire Australian spring campaign.
An Australian GST requirement is for 10 per cent of a horse's value to be either lodged or guaranteed at the time of entry, the money to be forfeited if the horse does not leave the country inside 12 months.
Australian racing clubs realise such a draconian regulation could seriously affect the number of New Zealand horses competing at major carnivals across the Tasman and have requested that their representative body, the Australian Racing Board, seek sympathy from Government.
"We all know it is not realistic for a horse like Sunline, who has been here several times before and left. The ARB is seeking exemption for those horses but so far the Government has not responded," says Australian Jockey Club racing manager Colin Tuck.
"There has been a suggestion there might be some sort of exemption, but there is nothing official and if there is it won't be before late this year."
Which will be too late for Sunline.
The multiple group one-winning mare has a value between $5 million and $7 million, which means the three owners have to free up a minimum $500,000 for a bond.
"The other thing is, who values her, us or the Australians," said McKee.
It does not affect just the star gallopers, says McKee.
"You might take a young improving horse over for the Derby, which would mean it would probably be worth $250,000-$300,000 or even more.
"The problem is it would probably have won only one race and $10,000, so how do the owners then come up with the $30,000 bond?
"It is okay for us as the owners of Sunline, we have probably got it, but a lot of others won't have the bond money required."
While an exemption may be available later this year for horses who have previously raced in Australia, the Government has indicated the exemption will not apply to those campaigning for the first time.
Moonee Valley officials are desperate to get Sunline into their Cox Plate and racing manager Fred Fox says he is "devastated" at the prospect of the mare's absence.
"We're working hard on it and hopefully there will be some resolution or solution in the next month."
McKee is considering the option of missing Australia and aiming Sunline at the Hong Kong Cup in December, fitting the champion mare with two or three races in New Zealand.
"There is also the Japan Cup around the same time with Dubai in March and the Singapore International Cup following that.
"After that she could possibly go on to the United States and finish her racing career there. It's something we're looking at."
Sunline has been back in work four and a half weeks and is two weeks from being asked for serious speed in training. She was due to fly to Australia in mid-August.
Racing: GST may can champ's Cox defence
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