The Andrews Labor Government is making wagering and betting companies pay their fair share of Victorian taxes – no matter where they are based.
From 1 January 2019, a Point of Consumption Tax (PoCT) will apply to wagering and betting companies – many of which have been profiting from Victorian punters without paying a cent in gambling taxes.
The POCT will apply at a rate of 8 per cent of the net wagering revenue derived from all wagering and betting activity by customers located in Victoria.
The move will better align Victoria’s wagering system with the increasingly digital betting environment, and revenue collected will go to the State’s Hospitals and Charities Fund.
The Government has undertaken extensive consultation with key industry stakeholders on design considerations and potential industry impacts since the PoCT was included in the Victorian Budget 2017/18.
The PoCT will be implemented in a way that protects Victorian jobs and does not adversely impact the Victorian Racing Industry (VRI), which is a major part of Victoria’s sporting landscape and cultural tradition.
The Government is committed to the principle that the racing industry will be no worse off as a result of this initiative, and will be contributing 1.50 per cent of taxable net wagering revenue to the VRI.
The Government will also put a review mechanism in place to assess the implementation of the PoCT, including its impact on the VRI.
The Government will continue to work with other states and territories to extend a common POCT model to other jurisdictions. A harmonised approach will deliver better outcomes for industry and taxpayers.
Further details are available at www.dtf.vic.gov.au/funds-programs-and-policies/point-consumption-tax
Quotes attributable to Treasurer Tim Pallas
“We’re making sure online betting companies pay their fair share of tax in Victoria.”
“We will continue to consult the industry and other stakeholders as we finalise legislation to implement the Point of Consumption Tax.”
Quote attributable to Minister for Gaming and Liquor Regulation Marlene Kairouz
“Online betting and wagering agencies take a huge amount of money out of Victoria. It’s time they started making a fair and proper contribution.”