Premier

A Fairer Pricing System For Gaming Machines In Victoria

11 August 2017

Venues that earn the most from pokies will be forced to pay more tax under changes announced today by the Andrews Labor Government.

Minister for Gaming and Liquor Regulation Marlene Kairouz said the new gaming machine pricing system would increase taxes for pubs, clubs and hotels with high-earning gaming machines.

The increased revenue these changes provide will go directly into the state’s Hospitals and Charities Fund, the Mental Health Fund, alcohol and drug treatment services and the Victorian Responsible Gambling Fund.

These arrangements will come into effect when the current gaming machine licences expire in August 2022 - providing pubs, clubs and hotels the certainty needed to plan for the future.

From August 2022, the price for gaming machine entitlements will be calculated using a formula based on a weighted average of a venue’s gaming machine revenue over the past four financial years, with a minimum price applying to club and hotel entitlements.

The price paid by new entrants to the market will be calculated using the average gaming machine revenue at a venue of similar size, type and location.

The post-2022 tax structure will introduce a new tax bracket for venues earning on average between $6,667 and $12,500 per machine, per month. In addition, a higher tax rate will apply to the top bracket (>$12,500 per machine, per month on average). High performing clubs will see a reduction to their tax concession based on a sliding scale.

It follows the Labor Government’s decision to freeze the total number of gaming machines in Victoria and the number of machines allowed in a single venue for the next 25 years.

Further harm minimisation measures relating to gaming machines will be announced in the coming months, following consultation with the community and industry earlier this year.

The allocation of gaming machines entitlements is expected to start later this year and be complete by mid-2018.

Incumbent venue operators can access their detailed price information via the VCGLR Venue Operator Portal. General information on pricing, proposed payment arrangements and the new tax rates are available at justice.vic.gov.au/gamblinglicensingprogram.

Quotes attributable to Minister for Gaming and Liquor Regulation Marlene Kairouz

“We’re ensuring venues that earn the most from pokies pay the most back to the Victorian community.”

“The price and tax rates that we have announced are fairer – and will secure important funding for health and community projects across Victoria.”

“Our pubs, clubs and hotels employ thousands of Victorians. Today’s announcement will give them the certainty they need to plan and invest in the future of their local communities.”

Reviewed 19 August 2020

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