Victoria suggests recent online gambling tax

Treasurer Tim Pallas in the Australian State of Victoria introduces a levy method and would see online gambling companies taxed 8 per cent of their net wagering revenue.

Victoria introduced this to raise an estimated $22.6m to help hospitals, schools, problem gambling and even out the playing field for foreign and domestic online gambling operators.

Now, online gambling sites that can be accessed within Victoria do not pay a uniform tax rate which domestic operator claim gives an unfair advantage for foreign operators and diverts taxes away from the State Government.

In next January, this point of consumption tax would reportedly be introduced, the same time as when Western Australia has pledged to introduce the same levy but at a 15 per cent rate.

It will be enforceable when any online bet is wagered from within Victoria and will be the duty of the operators to determine where their players are accessing their site from.

Online bookmakers in Australia had rallied together behind the group Responsible Wagering Australia to argue of the economic impacts that a 15 per cent levy would have in Victoria and elsewhere in the country.

Whereas other large industry groups such as Tabcorp and the Australian Hotels Association have argued for the tax rate in Victoria to be introduced at a higher level similar to other Australian states which already impose levies. South Australia has a 15 per cent tax rate.

Victorian Treasurer, Tim Pallas, is reported to have seen the 8 per cent proposal as a fair compromise between the two pressure groups.

Commenting on the new taxes introduction, Pallas said: “Essentially you’ve got a situation applying at the moment where online gambling operators are effectively avoiding tax — they don’t pay a cent of tax when they are providing product into this state. They are not paying their fair share and have an unfair advantage against domestically based product.”

The tax still needs to pass in the legislature’s upper-house before it can come into effect.

Source: gamblinginsider.com