The government announced the introduction of a new Point of Consumption Tax on wagering from January 1st, 2020.
Australia.- The Tasmanian Government has announced that it will introduce a new Point of Consumption Tax on wagering from 1 January 2020.
The Government set the PoC tax rate at 15% of the net wagering revenue of betting operators. The official announcement followed conversations with industry stakeholders. The legislation to bring the new tax into effect will be introduced in the Tasmanian Parliament next month.
Tasmanian Government added that the rate is consistent with most other jurisdictions in the country. Adding, that there will be a tax-free threshold of € 92,120 in betting turnover.
In addition, the new PoC tax could help bring in an additional € 3,07 million in revenue each year. Underlining, that the net benefits would be shared with the local racing industry.
However, Responsible Wagering Australia criticized the move saying it could have a negative impact and harm the racing industry.
Minchin AO, chairman of Responsible Wagering Australia, showed his disappointment with this decision. The introduction of “one of the highest taxes on wagering anywhere in the world” can’t be taken lightly.
15% rate is almost double that introduced in Victoria, while in South Australia, where the rate is also 15%, the state’s racing industry has been badly affected. “The 15% Point of Consumption Tax introduced in South Australia threw a handbrake on that state’s racing industry and has almost brought it to its knees,” Minchin said.
Minchin also pointed out that the Tasmanian Liberal Government will tax Tasmanians at a higher rate than any other Australian state.