South Australia PoC tax "untenable in practice", says AWC
Industry group warns the new tax will drive punters to tax-free offshore operators
The Australian Wagering Council (AWC) has labelled a proposed point of consumption (PoC) tax in South Australia as “untenable in practice” and likely to drive punters to unlicensed offshore operators.
The PoC tax, which was announced by the South Australian Treasury last Thursday, would add a new 15% tax on operators taking wagers in the state.
However several operators pledged to fight the “double taxation”, and the industry body AWC has added its voice to the protests.
“This tax will significantly impact the ability of Australian licensed wagering providers to operate in the South Australian market and give a free kick to unlicensed offshore operators, who are merely a mouse click away and who pay no tax in Australia,” said Ian Fletcher, the chief executive of the AWC.
“The unintended consequences of a PoC tax will adversely affect government, consumers and racing and sporting bodies. It is untenable in practice,” he added.
AWC members already pay federal taxes, state licensing fees and product fees paid to racing and sporting bodies.
According to the group, small or independent bookmakers could be put out of business, while larger operators will have “little choice but to offer their customers less value in terms of the prices available to bet on races and sport”.
“This will drive South Australian punters to illegal offshore operators in search of better prices and more diverse products,” said the AWC in a statement.
Fletcher added: “Offshore operators pay no government tax and no industry tax in the form of product fees, so the revenue to government, racing and sport will actually decrease with an increase in offshore wagering activity.”
Fletcher confirmed the AWC and its members would seek urgent meetings with South Australia Treasurer Tom Koutsantonis to explain the consequences of the proposed tax.
The announcement of the new levy reportedly came as a complete surprise to Australian bookmakers with no prior consultation having taken place.
“There has been no industry consultation, if there was then Tom Koutsantonis would know that all the corporate bookmakers already contribute taxes to South Australia through product fees paid directly to Racing SA,” said one bookmaker.
While South Australia is a relatively small state with around 6-7% of the national population, bookies fear the introduction of a PoC tax there could see other larger states follow suit.