The state of Victoria could be isolated, as new gambling taxes are being rolled out across the country. The so-called point-of-consumption tax which is to be introduced in almost all Australian states is aimed at bringing fresh money from both domestic and foreign gambling companies which operate on the territory of the country.
This week, the Australian Capital Territory (ACT) is expected to officially implement a point-of-consumption tax of 15% on all bets made on its territory, as reported by The Australian Financial Review. The ACT will probably announce the 15% tax rate on Tuesday, at the time when its 2018 budget is to be unveiled. The amount of the levy is set to correspond to the point-of-consumption tax which has already been rolled out in South Australia. According to media reports, the state of Western Australia has also put a tax of the same amount for discussion.
The above-mentioned amount, however, more than doubles the tax rate which is to be imposed in the state of Victoria from January 1st, 2019. As previously reported by Casino Guardian, online gambling companies in the state are to face an 8% point-of-consumption tax.
As announced by state authorities in the middle of May, local bookmakers are expected to contribute an amount of approximately AU$30 million on an annual basis to Victoria under the new levy. By the move, corporate bookmakers, which have long been blamed for paying relatively low taxes, are to be once again spared from being forced to pay significantly higher rates, unlike the ones operating in other states.
Queensland to Use Proceeds to Help Ailing Horse Racing Industry
Previously, Annastacia Palaszczuk, the Premier of Queensland, has commented the 15% point-on-consumption tax rate, saying that the levy would be imposed as part of the state election promises of the local Labor Party. Ms. Palaszczuk has further explained that a major part of the proceeds accumulated thanks to the new point-of-consumption tax is to be used by the state to fund the local horse racing industry which has been facing difficulties for some time.
The 15% tax rate is set to be unveiled in Queensland in spite of the strong opposition of the corporate bookmakers. The latter’s lobbyist groups, however, have obviously been more successful in the state of Victoria, where the point-of-consumption tax rate is to be much smaller.
Unlike the state of Queensland, Victoria has announced its intentions to use the proceeds set to be gathered as a result of the implementation of the tax to fund the State’s Hospitals and Charities Fund. As mentioned above, the state authorities have predicted that about AU$30 million are to be raised after the new 8% point-of-consumption tax is rolled out in Victoria.
Now, corporate bookmakers’ lobbyist groups have become more focused on New South Wales, which is expected to hand down its 2018 budget in a fortnight. The state is expected to roll-out a point-of-consumption levy in the range from 8% to 15%. Despite that, the state racing authorities will probably call for the majority of the funds accumulated to be redirected to the industry.
In addition, online bookmakers have protested against the new point-of-consumption levy, saying that such a massive tax rate would have a negative impact on their profits. Paddy Power Betfair-owned company Sportsbet has previously warned that its profits would be reduced by AU$12 million in case that a 15% point-of-consumption tax was rolled out in Western Australia.
- Author
Daniel Williams
