Tabcorp proposes wagering tax and regulatory changes in NSW
Tabcorp has suggested revisions to wagering taxes and regulations in New South Wales that could have an impact on how the racing sector receives funding.
Tabcorp has requested the NSW Government increase the Point Of Consumption Tax (POCT) from 15% to 20%.
The New South Wales Government will formally review Tabcorp’s suggestions involving consultations with bodies in the racing industry.
The approval of the proposal will hinge on its cost-effectiveness benefits to taxpayers and its potential to establish a funding model for the states racing sector.
The formal evaluation process may need to encompass reforms in legislation and licencing to ensure NSW racing viability in all three codes.
If NSW were to increase the POCT rate from 15% to 20%, it would bring the state inline with Queensland, who are already at that rate.
Queensland’s wagering turnover has been in decline ever since the increase to 20%.
NSW Treasurer Daniel Mookhey said, “gambling companies should always be paying their fair share.
“The NSW Government will apply strict scrutiny to Tabcorp’s proposal.
“Change will happen if it is clear that the public will be better off.”
NSW Minister for Gaming and Racing David Harris said, “the NSW racing industry generates billions of dollars for the NSW economy and sustains tens of thousands of jobs.
“The NSW Government wants to ensure the industry has a sustainable future for all those who make a living from it and participate in it and that the public is getting its fair share from all involved.
“We must be satisfied the proposal meets the interests of both the wider community and the racing industry and its stakeholders, before we consider implementing any elements of it.”
The NSW wagering industry is already in decline in terms of betting turnover, and it is feared a further tax increase would not be conducive to a return to growth.
In a statement to the ASX, Tabcorp said that they “welcomed the decision to establish a formal process on the proposal.
“This is a positive step towards ensuring the sustainability of the NSW racing industry.
“We look forward to working constructively with the NSW government and the NSW racing industry during this process,” Tabcorp said.
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