Tabcorp and anti-gambling lobby group join forces to increase pressure on Victoria government
Coalition of companies wants a heavier tax on online bookmakers as the Australian state prepares for election
Tabcorp have collaborated with a number of lobby groups to put pressure on Treasurer Tim Pallas to increase taxes on gambling losses for companies who are based outside of the state.
The current tax rate for online gambling losses in Victoria is 10%.
The point of consumption tax (POCT) was first introduced in Victoria in 2019 as a response to concerns that foreign-based firms were effectively avoiding paying any state tax.
The initial POCT tax was 8%, but it was raised to 10% in 2021 to bring the state in line with New South Wales, but this rate is still lower than South Australia, Western Australia, Queensland and the Australian Capital Territory, which all have a tax rate of 15%.
Many corporate bookmakers hold licences in Victoria whilst still operating across Australia, which means they have lower taxes which return to the headquarters overseas. Tabcorp has called on the Victoria Government to raise the tax to the same level as the recent levy in Queensland, which has announced the rate will be raised to 20%.
Tabcorp has found a companions in Victoria’s Pubs and The Alliance for Gambling Reform, who are a collaboration of 60 organisations who are trying to prevent and minimise gambling harm, which wants not only the tax to be reformed but also for licensing and advertising arrangements to be amended as the group feels that it benefits bookmakers significantly.
Tabcorp’s chief executive, Adam Rytenskild, has made calls for its online competitors to pay their “fair share”. Rytenskild added: “TAB pays double the fees and taxes, which works in a monopoly environment, but the market share has changed. Online operators have increased their share and should be contributing to the industry on a level playing field.
“All we want is a level playing field where everyone pays the same taxes and fees. That’s fair,” he concluded.
There has been some opposition to this call for an increased POCT. Online bookmaker lobby group Responsible Wagering Australia (RWA), fronted by former Labor minister Justin Madden, said the taxes “unfairly entrench the monopoly enjoyed by established and land-based wagering service providers at the expense of the new and emerging online industry”.
The Victoria elections are set for 26 November 2022, with current Premier Daniel Andrews seeking a third successive four-year term.