Monday 27. March, 2017

Australia Considers National Point of Consumption Tax for Betting

The Australian Federal Government has revealed plans to introduce a point of consumption tax (POCT) for online gambling operators across the country, similar to the one that is being introduced in the state of South Australia.

Federal Treasurer, Scott Morrison, met with officials from the states and territories on Friday to discuss the 2017 federal budget. Following the meeting, Morrison stated that the relevant parties had agreed “to move forward to prepare a proposal for a nationally consistent approach to [a] point of consumption tax on online gaming.”

The POCT would potentially deal a blow to the Northern Territory which is currently the premier online licensing jurisdiction in the country. However, other states and territories have complained that the Northern Territory is depriving them of taxes that should be due in the states and territories where punters are located.

Morrison insisted that this tax was “not about raising revenue for revenue’s sake,” but rather an effort to promote gambling-related harm minimisation for both punters and national sporting bodies.

No specific date has been set for the introduction of the tax; however, the state and territory governments agreed to examine the matter further. According to Morrison, South Australia’s plan is “a good starting place to look at models.”

South Australia expects to collect around $9.2 million in tax revenue annually from the 15 percent POCT on gambling revenue that is set to become official from July 1.

This announcement follows soon after the Australian Senate voted in favour of the Interactive Gambling Amendment Bill 2016 which will ban foreign online gambling operators and will close the loophole that allows online in-play betting. Online poker will be hard hit by the changes, despite attempts to exempt it from the new laws.


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PokiesPedia was last updated:
April 16, 2017

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