Northern Territory Plans to Double Wagering Tax Limit

Australia’s Northern Territory has revealed a major change to its gambling tax rules, announcing it will double the yearly tax cap for licensed bookmakers and betting exchanges. This move, starting July 1, is part of the territory’s wider 2025–26 budget and is expected to bring in an additional AUD13.1 million ($8.5 million) in yearly tax income.

Northern Territory Targets 25.5% Gambling Tax Surge with New Reforms

The change will boost the current limit from one million to two million revenue units, each valued at AUD1.45 ($0.94), beginning July. This hike aims to strengthen public funding, with the territory expecting total gambling tax revenue to hit AUD145 million ($93.8 million) in the next fiscal year, a significant 25.5% jump from last year.

Along with this step, a flat 50% tax rate on profits from online gambling activities, lottery, ticket reselling and matching, will also kick in. Northern Territory officials claim this will bring online gambling taxation in line with wider gaming rules, aiming to create a more level playing field across digital platforms.

Territory Treasurer Bill Yan pointed out that the expected AUD142 million ($91.9 million) overall increase in tax and royalty revenue would go back into community safety, infrastructure, and services. He called the reforms crucial for economic growth.

RWA Warns NT’s Tax Plan Could Undermine Sector Stability and Growth

However, the policy has triggered opposition from industry stakeholders. Responsible Wagering Australia (RWA), the main group representing the country’s online wagering providers, voiced strong criticism. It said the government had put the changes in place without talking to the industry. 

RWA CEO Kai Cantwell claimed that the decision weakens both ongoing regulatory reviews and the Territory’s position as a competitive place for gambling operators.

Cantwell says this announcement comes before the final results of the Northern Territory’s Racing Industry Review, a study that aims to shape long-lasting strategies for the betting sector. He cautions that these quick tax increases might discourage investment and put the Territory’s economic attractiveness at risk.

RWA argues that licensed operators have contributed a lot to the local economy, and that these policy changes should be based on teamwork and careful planning. The group is asking the government to think again about the new tax structure and talk with stakeholders before moving forward.

As the Territory pushes on with its money reforms, the balance between raising public funds and keeping the industry happy will stay a key issue in the coming months.