In 2019, Victoria implemented a point of consumption tax of 8 percent. In addition, it increased the POCT on sports betting to 10 percent. At present, New South Wales state authorities have proposed a sports betting tax increase. They hope the tax can help improve Victoria’s horse racing industry.
According to gambling and sports news coverage, authorities want to increase the POCT rate from ten percent to fifteen percent. Thus, the tax rate will be at the same level as in other states in New South Wales, Tasmania, Southern Australia, and Western Australia.
On the other hand, 15 percent is still below the tax rate in Queensland. According to online gambling experts, the tax rate for sports betting in Queensland is 20 percent.
Proposed Sports Betting Tax Increase in Victoria
After Tabcorp, Australia’s largest gambling company, complained that offshore online gambling operators are not paying their “fair share of taxes” to Victoria, the state government proposed the POCT hike. According to gambling industry reports, the tax is scheduled to go into effect in July 2024 if the initiative takes off and is approved.
The state’s economy relies heavily on the horse racing sector. It contributes to the maintenance of over 35,000 employment and almost AU$5 billion ($3.33 billion) in annual revenue. More than 100 clubs are part of Victoria’s racing business, demonstrating the state’s dedication to the sport.
Not a single sector was prepared for the COVID-19 pandemic when it emerged a few years ago. The industry of horse racing was also hit hard. State officials attempt to aid the horse racing industry with the new fee. According to the plan, the racing sector would receive around 7.5% of the 15% overall tax.
In an interview with The Sydney Morning Herald, Racing Minister Anthony Carbines said the new policies are intended to benefit the sector in the long run. He believes the measure will safeguard thousands of employments and events that bring in millions of dollars for the state each year.
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