New South Wales online gambling operators are gearing up for a new tax change that could gain them $78 million for their state funds. Dominic Perrottet, the treasurer for New South Wales, announced Thursday, March 8, 2018, that there is a proposal in the works trying to impose a gambling tax. The tax would either be 15% of bookmaker profit or 2% of the total turnover profit.
Online gaming companies have four weeks to consult with government officials and comment on the tax proposal before officials decide if they are going to introduce the bill to the New South Wales budget.
Sports betting and racing taxes are already charged at physical locations. Perrottet pointed out a part of the scheme is that it does not gain revenue from online wagering, which is increasing in popularity among New South Wales residents.
Already territories and other states have changed their tax laws to gain revenue from online betting, which is another reason New South Wales government officials are thinking about changing how they do things. They want to understand how a change to the operation, such as a tax would affect online gaming, and decide if New South Wales needs to make a difference. All parties get to have a say before a law is put in place.
Tabcorp and National Rugby League have met with the treasurer to discuss the tax bill. Tabcorp is part of the racing industry. They rely heavily on financial contributors, and they do want a fair tax option. The National Rugby League rejects the concept.
The Bill and Gaming
Outside of New South Wales, there is a 15% “point-of-consumption” tax on betting operators who offer services online. South Australia, Queensland, and Western Australia all have a tax, and many other locations are expected to follow like New South Wales.
Australia’s federal government has been considering imposing a national point of consumption tax as a way to streamline the online taxation system.
The Victorian government is negotiating a tax for online betting operators that will be between 8 and 10 percent of the revenue. The tax would affect Racing Victoria and other operators. Victoria is going to reveal the details within the next few weeks, regarding the new wagering tax.
Taxing online betting operators is not a new concept in Australia or other parts of the world. It is being used as a way to help the coffers of countries and states gain funding.