In Australia and the small southern state of Tasmania is reportedly set to introduce a 15% point-of-consumption tax on all net gaming revenues in hopes of bringing in about $3.4 million every year to help run a more efficient government.
According to a Thursday report from Inside Asian Gaming, the move is due to come into effect from the first day of January to see Tasmania become the last of the nation’s six states to have introduced such a duty. Although the rate will purportedly be roughly identical to that already imposed on gambling operators in Western Australia, Queensland and South Australia, it is to be higher than the 10% collected in New South Wales and almost double the 8% imposed in Victoria.
Despite reportedly containing an initial betting turnover exemption worth approximately $101,981, the planned implementation of the tax for the island jurisdiction has nevertheless prompted criticism from the local online gaming industry’s Responsible Wagering Australia trade body. This group’s Chairman, Nick Minchin, purportedly declared that the move will mean that Tasmania’s government is to have the ‘dubious honor’ of levying taxes that are of ‘a higher rate than any other Australian state.’
Minchin reportedly told Inside Asian Gaming…
“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. In South Australia, prize money has been cut, field sizes have shrunk, participants have fled interstate and jobs have been lost. Starting off a much lower base, the Tasmanian government has today put that same handbrake onto Tasmanian racing and thrown its future into massive uncertainty.”
However, CalvinAyre.com reported that the Treasurer for Tasmania, Peter Gutwein, subsequently issued a statement in which he defended the looming tax by explaining that its rate is to be roughly consistent with that charged by Australia’s five other states.
Reportedly read Gutwein’s statement…
“Following consultation with industry stakeholders, it has been determined that the point-of-consumption tax will be set at a rate of 15% of the net wagering revenues of betting companies and will exclude the face value of free bets provided to bettors.”