South Australia is launching a new “place of consumption” tax for betting operators offering services in the state, local media reports.
The new tax will be the first time an Australian jurisdiction has targeted betting companies based on where the bets are made, rather than the location of the operator. The tax will be calculated as 15 percent on the net wagering revenue of all betting companies, with the government estimating to raise around A$9.2 million (US$7 million) a year in new revenue.
According to Treasurer Tom Koutsantonis, the tax would apply to bets on horse, harness and greyhound racing, and other sports such as AFL and soccer and being on July 1, 2017.
"The betting industry is rapidly changing and our tax regime needs to change with it," Koutsantonis said.
Additionally, a tax-free threshold of A$150,000 has been proposed for all betting companies.
"One of the things we identified is that with the rise of sports betting in Australia, and online betting, lots of the taxation related to that betting was paid in other jurisdictions — effectively tax havens — in particular, the Northern Territory and Norfolk Island, both of which have very preferential arrangements for taxation,” said Koutsantonis.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264