There are regulations on pokies in Australia – you can’t place a bet of more than $5, for example, and NSW recently put a 20% cap on new pokie machines in problem gambling areas – but they appear to have little impact. In 2018-19, the NSW government received close to $2.5 billion in tax revenue from gambling. This was an increase of $105 million from the previous year. Recent NSW Treasury figures indicate over the next 10 years, $85 billion will be lost on NSW poker machines, and the government will collect $22.5 billion in gaming machine tax. History of Gambling Tax Legislature In Australia, the winnings from gambling are not taxed. This is for three reasons. Gambling is not recognised as a profession in Australia.
New South Wales has become the latest state to slap online bookmakers with a point of consumption tax.
NSW treasurer Dominic Perrottet will announce a 10 percent tax on online bets made by NSW customers when he delivers the state budget next week.
South Australia, Western Australia and Queensland have all introduced a 15 percent tax on online bets made in their respective states. Casino near syracuse university.
Victoria will introduce the lowest point of consumption tax in Australia of eight percent on January 1. The NSW tax on online bets will also come into force on January 1.
The NSW point of consumption tax is expected to raise $100m per year with a portion of the amount collected to head back into the state’s racing industry.
New Gambling Tax Law
Perrottet told The Australian the tax on online betting companies was to ensure Northern Territory-licenced organisations paid a fair amount of tax in NSW.
“The introduction of a point of consumption tax is an important step to ensure that we are levelling the playing field given the wagering tax paid by onsite operators,” Mr Perrottet said.
“Following an extensive consultation period with stakeholders, this decision will resolve the disconnect between the jurisdiction where gambling activity occurs and where it is taxed.
“We also want to make sure that the racing industry is no worse off under these changes, which is why we have taken steps to ensure that they receive fair compensation and that existing parity arrangements are unchanged.”
The TAB wanted the government to impose the same 15 percent rate as other states on online bookmakers. Perrottet said the 10 percent was fair for corporate bookmakers, who also pay race fields fees in NSW.
“We think 10 percent strikes the right balance and that online corporate bookmakers should contribute their fair share,” Perrottet said.
“However, a 15 percent additional tax on top of GST and race field fees would be an excessive burden on players in the market.”
Nsw Gambling Tax Rates
Perrottet said the NSW Government would review the 10 percent rate in 18 months’ time.