The Victorian Treasurer has announced that the Victorian Government will introduce, with effect from 1 January 2019, a Point of Consumption Tax (PoCT) of 8% that will apply to the net revenue of wagering and betting operators, including online operators. Other jurisdictions have followed suit with similar announcements.
The Victorian tax, which was first proposed in the 2017-18 State Budget, proposes levelling the playing field for all betting operators regardless of the jurisdiction in which they are licensed by imposing a tax based on the customer’s location.
The Treasurer said the Victorian Government will continue to work with other states and territories to extend a common PoCT model, although Victoria has taken a markedly softer approach than other jurisdictions (having a rate of 8%, comparatively lower than the others).
In the recent Budget handed down by the Australian Capital Territory Government, a similar PoCT has been proposed to take effect from 1 January 2019 at the rate of 15% for bets placed in the ACT or placed by ACT residents.
Similarly, the latest Queensland Budget announced a PoCT applying to Queensland residents and bets made within state at the rate of 15%.
These PoCTs will, if passed, join the existing South Australian PoCT which has applied at the rate of 15% since 1 July 2017.
Earlier this week, the NSW Treasurer announced that the state would take the middle road and introduce a PoCT at the rate of 10%.
Like most taxes, the devil is in the detail: all of the recently introduced PoCTs have diverging tax-free revenue thresholds ranging from $150,000 to $1 million between the various jurisdictions. It will be interesting to see how well the jurisdictions co-ordinate to administer their respective regimes without unduly penalising the betting consumer.