New South Wales government considering betting tax hike
The prospective increase to 20% has been backed by Tabcorp but other operators have raised concerns within the Australian state
The New South Wales (NSW) government is considering lifting the tax rate on all bets placed within the state, as per proposals from Tabcorp
The potential increase would lift the point of consumption tax (POCT), first introduced in 2019, from 15% to 20%, and align New South Wales with other states such as Queensland and the Australian Capital Territory (ACT).
The POCT is in place to ensure bookmakers pay tax to the state in which a bet was placed, rather than where the bookmaker is registered.
Should the tax hike come into place, it would be the second within two years, after POCT was raised from 10% to 15% in June 2022.
Tabcorp believes the reforms would create a “level playing field” for all operators in the state.
A spokesperson for the operator said: “Tabcorp notes the announcement today by the New South Wales government to establish a formal process to consider reforms to the NSW wagering tax regime, regulation and industry funding that, if implemented, would create a level playing field and modernise retail exclusivity, similar to reforms in Queensland and Victoria.
“This is a positive step towards ensuring the sustainability of the NSW racing industry”.
NSW treasurer Daniel Mookhey suggested the reforms would go ahead if they’re found to be in the public interest.
As reported by the Sydney Morning Herald, 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’s clear the public will be better off.”
The masthead also reported comments from Sportsbet CEO Barni Evans, in which he hit out at the proposals.
“It is important to ensure any change to the funding model does not prioritise one stakeholder above the sustainability of the industry. We welcome the opportunity to engage on this matter,” Evans said.
“Racing’s long-term sustainability depends on wagering turnover growth, which has been in decline for the past 18 months. Higher taxes, as we have seen in Queensland, are not a recipe for a return to growth.”
In April, PointsBet CEO Sam Swannell was relaxed about any potential tax increases, suggesting there wouldn’t be any tax hikes in the near future.