ACT Government Introduces New Gambling Tax

Published by David Rednapp
Published on 06 Jun 2018 by David Redknapp

15% POC Tax Introduced in Australia

ACT wagers slapped with new tax.

Following similar moves by other territories, the Australian Capital Territory has announced that it will be introducing a new point of consumption (POC) tax on gambling operators.

According to the government, the 15% POC tax will apply to all net gambling revenue that is generated by betting companies through wagers placed in the Australian Capital Territory. It will also apply to bets made by residents of the ACT.

By introducing this new tax, the ACT government believes that it will be able to raise an extra $2 million each year.

Similar Taxation to Other Territories

The Canberra Times reports that budget papers that it obtained recently stated: "The introduction of this tax will bring the ACT into line with multiple other Australian jurisdictions which are also in the process of implementing point of consumption tax arrangements."

The budget papers were referring to moves being made by other governments in recent months.

South Australia recently introduced the Betting Operations Tax which covers all bets placed in SA with Australian betting companies. The rate was set at 15% and covers horse racing, sports betting and novelty bets.

Queensland and Western Australia are in the process of introducing their own 15% POC tax regimes, while Victoria is the only territory that has plans for an 8% taxation rate.

Victoria's Betting Tax

Last month, Victoria said that it would impose the 8% point of consumption tax on online betting agencies, beginning January 2019 and pending legislative changes. The state hopes to raise about $30 million a year, according to the state treasurer, Tim Pallas.

Pallas said that while the state wants to make sure that online betting companies "pay their fair share of tax in Victoria", he also didn't "want to do any harm to that industry."

In the meantime, anti-gambling groups continue to push for a higher tax rate, and are urging the government to at least match the rate to 15% as other states are planning.

The tax will apply on all bets placed in Victoria.