Victoria to implement 8% online POC tax
Treasurer Tim Pallas says the new tax will generate A$30m annually despite being much lower than 15% rate in other Australian states
Victoria has introduced an 8% point-of-consumption (POC) tax that will apply to online gambling operators in Australia from January 2019.
The 8% rate is just over half the 15% tax enforced in other Australian states and is expected to start from January should it be approved by parliament.
The new tax rate will affect Australia’s online-only bookmakers like Sportsbet, CrownBet, Ladbrokes and Bet365 who lobbied for a lower POC rate alongside industry group Responsible Wagering Australia.
The group said it wanted to ensure there was no adverse impact on Victoria’s horse racing industry which is largely supported by Race Fields Fees from operators.
“Victoria is the premier racing state and to their credit, they have treated corporate bookmakers with a bit more fiscal respect than other states when looking into this tax,” said wagering consultant Adrian Molloy.
“It seems that some states are hell-bent on wiping corporate bookmakers off the face of the earth through taxation as they already pay wagering tax, company tax, Race Fields Fees and more.
“The Victorians made sure they understand the real impact of any POC, so it doesn’t cannibalise existing tax revenues and hurt the racing industry, one of Australia’s largest employers.
“There was a real concern that a high level of POC would negatively impact Race Fields Fees which fund the sport, so they must tread warily and they have.”
Victoria treasurer Tim Pallas said of the announcement: “We’ve got a situation at the moment where online gaming operators are effectively avoiding tax, they don’t pay a cent of tax.
“We do need to recognise that harm is being done through the provision of gambling products and the appropriate payments by those operators to assist in dealing with that harm has to be made.”