Victoria passes reduced iGaming tax rates

Online gambling will have to pay an eight per cent point of consumption tax in the Australian state.

Australia.- The state of Victoria has decided to charge online gambling with an eight per cent point of consumption tax. There was a push to set the rate at over 15 per cent, but the lowered tax was finally chosen.

Tim Pallas, the Victoria state secretary, said gamblers won’t enjoy this waver until the beginning of next year. He also said he hopes the eight per cent point of consumption tax will raise US$22.6 million in revenue, set to benefit the state’s charities and hospital funds.

Pallas was questioned about meeting former Australian Parliament member Stephen Conroy or having any discussions over the tax rates but he denied it. He denied the influence of any figure backstage and added his priority was balancing companies’ performance and state revenue.

Even as the gambling industry celebrated the decision, there were some who criticised the eight per cent rate. Among them is Tim Costello of the Alliance for Gambling Reform who criticised Responsible Wagering Australia (RWA) and Conroy. He claimed they pressured the state government into the delay and the further reduction of tax rates on gambling.