The Victorian Government has announced a point of consumption tax on corporate bookmakers taking the bets of Victorian based punters.
The rate of 8 per cent is lower than the 15 per cent introduced by the South Australian Government last year which in turn was followed in Western Australia.
The tax, commencing on January 1, 2019, will be paid by wagering companies from their net revenue derived from all wagering and betting activity by customers located in Victoria.
Victorian treasurer Tim Pallas said the tax would be implemented in a way that protects Victorian jobs and does not adversely affect the Victorian Racing Industry (VRI).
Revenue collected will go to the State’s Hospitals and Charities Fund while the Government will hand over 1.5 per cent of proceeds to the VRI to ensure it is no worse off.
“We’re making sure online betting companies pay their fair share of tax in Victoria,” Pallas said.
Racing Victoria chief executive Giles Thompson, speaking on behalf of the RVI, said discussions with the Government had been constructive and that they had considered the position of the VRI that it be no worse off with the introduction of the tax.
“Given that the impact of a point of consumption tax on the behaviour of customers and wagering service providers cannot be judged with absolute clarity until after its implementation, we are pleased that the government has committed to conduct a formal review of its impacts within the first 18 months of operation, along with further future reviews as appropriate,” Thompson said.
“We will also continue to work with the wagering service providers to understand the potential implications for them and to ensure their continued support of the VRI and its stakeholders.”