Nationals Senator, Bridget McKenzie has told Guardian Australia that the country should review its tax system on the gambling industry and called for a complete overhaul.
McKenzie suggested that the government should stop local players from placing wagers with foreign gambling operators by using all tools available to them, especially banking methods.
McKenzie said that, as things stand, the gambling taxes imposed on the industry were not effective enough.
"In terms of wagering, the current legal framework doesn't provide the outcomes we need," she said.
The Senator is calling for a uniform tax applied to the entire gambling industry in Australia. The bulk of the revenue from this taxation, according to the plan, will be distributed across all states where gambling is regulated.
The rest of the income could be distributed to programs aimed at reducing the risks of gambling and a number of regional development projects.
Fast Growing Australian Sports Betting Industry
One of the main issues that Bridget McKenzie has with the current tax framework is that fact that sports betting, while one of the fastest growing markets in the country, is taxed so little in comparison to other players in the industry.
McKenzie is calling for the government to overhaul gambling taxes based on its recent review of the tax system carried out. She has made a formal submission of her new taxation proposal to the tax review committee and will follow it up in a federal parliament speech in the coming days.
The Senator wants the government to impose a 0.05% levy on all gambling turnover in Australia.
Compulsory Gambling Levy
Bridget McKenzie proposes that in order for gambling operators to receive a license, they will need to pay a product levy.
"A condition of an Australian wagering operating license will be that any licensee has to ensure that their affiliates pay Australia the product levy on betting by all customers on all Australian sports," noted the Senator in her submission.
In August this year, Financial Counselling Australia issued a new report recommending that sports betting agencies should be "urgently" banned from extending credit to punters.