Australia: Victorian government to review pokie tax scheme

A Labor-led parliamentary inquiry in Victoria is to recommend an overhaul of a tax minimisation scheme.

Australia.- A parliamentary inquiry led by the Labor Party in Victoria is to propose an overhaul of the tax minimisation scheme used by poker-machine venues.  The inquiry, set to present its findings in the upcoming parliamentary session, is expected to recommend major changes to the existing “community benefit” scheme. 

Under the scheme, gaming machine revenue can be taxed at a lower rate if 8.33 per cent of it is invested back into the community. Venues must submit a statement that shows how their activities directly or indirectly benefit the community to qualify for the subsidy. However, the money has been used largely for operations and upgrades at the clubs.

See also: Victorian gaming venues spent US$117.3m of profits on themselves

This has caused controversy among councils, public health experts, social service groups and anti-gambling advocates. Hume City Council has criticised the state government for not reforming the scheme despite being urged to do so. Mayor Joseph Haweil accused some clubs of “rorting” the council.

The president of the Municipal Association of Victoria, David Clark, said councils are eager to collaborate with the government in an effort to restructure the community benefits programme.

Tim Costello of the Alliance for Gambling Reform said the scheme was the “longest-running rort in Victorian public life”.

Earlier this month, the minister for casino, gaming and liquor regulation Melissa Horne introduced the Gambling Legislation Amendment Bill 2023 to Parliament in Victoria. The primary feature was mandatory closure periods for gaming machine areas in venues excluding the state’s casino between 4am and 10am. The rule would come into force by mid-2024.