WA considering statewide point-of-consumption tax for bookmakers
Western Australia’s government is considering implementing a point-of-consumption (POC) tax on bookmakers.
While the federal government is considering implementing a POC tax nationwide, WA has jumped the gun and is considering implementing it statewide.
The WA government has suggested the POC tax – which would tax betting companies on where bets are placed instead of where online bookmakers are located – to counter the loss of wagering money to online betting companies.
While many bookmakers are located in Northern Territory due to the low tax rates, the POC model would require all corporate betting operators to pay on all bets made in WA including racing, sporting events and even novelty bets.
The state government said the tax would help combat retail wagering revenue declines due to corporate bookmakers.
South Australia is in the process of implementing a POC tax, which will see 15 percent of net wagering revenue accrued by corporate bookmakers that earn more than $150,000 a year given to the government.
The tax is expected to raise $9.2 million a year for the government and it will be effective from July 1.
Racing and Gaming Minister, Paul Papalia, believes the TAB is facing a difficult time up against online bookies including CrownBet, William Hill and Ladbrokes.
The WA TAB helps fund the racing industry and provides revenue to sporting clubs and facilities.
Papalia confirmed the WA government was keen on the POC tax, revealing a similar approach is being considered for all of Australia.
Reports following the Tabcorp and Tatts tie-up hearing held by the Australian Competition Tribunal over the last few weeks have confirmed a nationwide POC tax is being considered.
Sportsbet CEO Cormac Barry slammed the suggestion as he gave evidence during the 14-day hearing stating it would render corporate bookmakers as “loss making”.
The nationwide application was proposed by Federal Treasurer Scott Morrison earlier this year.
“It needs to happen in every State,” Papalia said.
“If that’s done then that breaks the NT’s model, where the guys go and base themselves and there’s diminishing returns to the State.
“What will happen is where you bet, that location will receive the revenue. It needs to be led by the Federal Government and introduced nationally.
“I think it’s a good idea. But it would only be in the event there is a net return to the State, and I’m told there is.”
Paplia said he supported the tax after he had asked for a “detailed assessment” of the State’s racing industry to see if it was “robust and sustainable”.
His investigation into the industry is a result of whether or not the government should sell the WA TAB.
The former Liberal government had said it would be privatising the TAB in 2015, and Labor was then open to it if the racing industry supported the move.
But Premier Mark McGowan has since pointed out selling the TAB could cause a hole in the state’s finances.
Shadow treasurer Dean Nalder also said while the Liberal Party was supportive of the POC tax, it did go against the election pledge of no new taxes.
More News
-
Amorim’s Sporting Lisbon smash Man City in UCL stunner
-
Knight’s Choice wins 2024 Melbourne Cup in thrilling finish
-
Melbourne Cup results & finishing order
-
Miocic hits back at critics over Jones fight at UFC 309
-
Cricket: Australia edge out Pakistan in low-scoring first ODI
-
2024 Melbourne Cup free betting preview, racing tips & first four
-
2024 Melbourne Cup: Athabascan scratched due to cardiac issue
-
Damien Oliver doubtful of Sea King’s Melbourne Cup chances