The NSW state government has announced an increase to the Point of Consumption Tax (POCT) on corporate bookmakers in the state, set to rise from 10% to 15% from 1 July 2022.
The new tax formed part of the NSW budget for 2022, announced Tuesday, with estimates suggesting it will raise an additional AU$740 million (US$517 million) per year in government revenues. It also follows news of a similar POCT increase, from 15% to 20%, in Queensland earlier this month, while moves are afoot in other states to pursue a similar route.
The tax increase, which largely impacts foreign-owned corporate bookmakers, has been welcomed by Australian gaming and racing giant Tabcorp which has been actively lobbying state governments on the basis that it faces a higher tax burden than its competitors in the market.
“Today is a positive step forward in levelling the playing field in NSW,” said Tabcorp Managing Director and CEO, Adam Rytenskild. “Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.
“We welcome the NSW Government’s announcement. Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy.
“The Queensland Government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.”
Tabcorp also said it intends to continue advocating for “further industry reform and a level playing field.”
RelatedPosts
