Victoria to increase tax on sports betting
Victoria will increase the tax on bookies’ betting losses to generate more revenue for horse racing.
Australia.- The government in Victoria is set to increase the tax on bookies’ betting losses from 10 per cent to 15 per cent. The move aims to generate more revenue for the horse racing industry, which has been hit hard by the Covid-19 pandemic.
The changes will take effect from July next year. They were proposed after Tabcorp said online foreign-owned betting agencies “were not paying their fair share.”
The point of consumption tax (POCT) was introduced in Victoria in 2019. It was increased from 8 per cent, the lowest in the country, to 10 per cent in 2021. The rise to 15 per cent will bring it in line with other states such as New South Wales, Western Australia, South Australia and Tasmania. In Queensland and the Australian Capital Territory (ACT), the rate is 20 per cent.
Racing minister Anthony Carbines told The Sydney Morning Herald: “These changes provide vital long-term certainty for the industry and ensure that it continues to be funded from wagering generated on its product – helping the industry to back jobs and events that bring in millions of dollars each year to communities right across the state.”
However, not everyone is satisfied with the proposal. Tim Costello, head of the Alliance for Gambling Reform, called for a national framework and said the rate should be higher. “This is cosmetic. It’s good given the crisis the Victorian budget’s in, but it’s a Band-Aid,” Costello said. “It shouldn’t be going to racing.”
See also: VGCCC fines Crown Melbourne US$20m over illegal bank cheques