Tabcorp hailed the announcement as a positive step toward industry reform.
Australia.- The New South Wales (NSW) government has announced an increase in the Point of Consumption Tax (POCT) for operators in the Australian state. The tax will increase from 10 per cent to 15 per cent.
The POCT applies where the bet is placed, not at the location of the operator accepting the bet. This means that all those operating in NSW are required to pay the tax, regardless of where the operator is licenced.
The increase was announced as part of the 2022-23 NSW Budget and will take effect from July 1. The reform is expected to boost revenue by AU$740m (US$515.6m) over the next four years.
The announcement was well-received by Tabcorp. Managing director and chief executive officer Adam Rytenskild stated: “Today is a positive step forward in levelling the playing field in NSW. Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.
“We welcome the NSW government’s announcement. Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy. The Queensland government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.”
As previously reported by Focus Gaming News, authorities in Queensland have announced a new sustainable funding model designed to boost Queensland’s racing industry, especially country racing. It includes a new 5 per cent racing levy added to the betting tax and an expansion of the tax to cover free and bonus bets.
The changes include:
- a new 5 per cent racing levy added to the betting tax (also known as the Point of Consumption tax)
- broadening the betting tax to include free and bonus bets
- increasing the proportion of betting tax revenue that goes directly to the racing industry from 35 per cent to 80 per cent.