Australia tightens online gambling taxes

australia

The Northern Territory has reportedly opposed the proposal.

An agreement between state counterparts and the federal Treasurer of Australia would set a nationwide point of consumption tax.

Australia.- Australia, currently the biggest gambling nation, has been reforming its regulations and taxes in the last couple of months. A recent agreement between the federal Treasurer and state counterparts would set a similar rate between Australian states.

The Northern Territory has reportedly opposed the proposal as it would increase the taxes of the operators located in the area. The jurisdiction that currently has the biggest number of companies and is considered a licensing territory is in the verge of suffering the loss of the privileges they have. According to NTNews, companies like Ladbrokes, bet365, Sportsbet, bet fair and Unibet already claimed their opposition to the proposal. Treasurer Scott Morrison agreed to work with state counterparts to reach a proposal for a nationally consistent approach to a point of consumption tax on online gaming.

The group is set to review South Australia’s new gaming system that will take effect on July 1 with a tax net wagering revenue of 15 percent. Even though the government of the Northern Territory announced that they will fight the agreement because they consider the measure as an attack on their jobs, a spokesman for the Treasurer’s office confirmed that they’re going to fight it all the way. “More than 350 Territorians are employed by corporate bookmakers, injecting millions of dollars into the local economy. If the proposed tax goes ahead it would remove the Northern Territory’s competitive advantage as the home of corporate bookmaking in this country,” he added.

John Rau, South Australia’s Minister for Consumer and Business Services, also said that he would ask for more actions against problem gambling on the online sector. He considers the current proposals inadequate and he said that he would ask ministers to eliminate offshore gambling operators, as well as the prohibition of ads during sports events. “Online gambling is a growing social menace. Cosmetic change is not enough. Purveyors of online gambling are about the ‘normalisation’ of gambling. Children are a significant target of this grooming behaviour. The predatory practice of using inducements and incentives to promote gambling is a cynical exploitation of children and the vulnerable.”