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NSW is introducing a 10% tax on online betting

NSW is introducing a 10% tax on online betting Punters in New South Wales will pay 10% tax on online bets from 2019 under changes to gambling taxation announced in the state budget today. The point-of-consumption tax (PoCT) will take effect from January 1 and leaves only Tasmania and the Northern Territory without some form of taxation on online gambling. A number of corporate bookmakers, including Sportsbet, CrownBet, and Bet365, are registered in the Northern Territory, while the merging Tabcorp and Tatts Group pay a higher level of tax as TAB operators based in NSW and Victoria. Last month the Victorian state government announced an 8% PoCT on net wagering revenue from January next year, hoping to raise around $30 million annually. South Australia introduced a 15% tax last year, with Western Australia due to implement a 15% tax in 2019 and Queensland’s 15% tax begins this October. The NSW tax is on all wagers placed by NSW residents, regardless of where the operator is based. A tax-free threshold of $1 million per year will apply for all operators and NSW treasurer Dominic Perrottet said the racing industry will receive additional funding of 2% of all net wagering revenue in NSW, similar to the Victorian model. “This decision will resolve the disconnect between the jurisdiction where gambling activity occurs and where it is taxed,” Perrottet said. “We also want to make sure that the Racing Industry is no worse off under these changes, which is why we have taken steps to ensure that they share in additional revenue and that existing parity arrangements are unchanged.” NSW treasury coffers received around $2.3 billion in gambling taxes last year, with annual growth predicted around 3.1%. The new online wagering tax is expected to generate $40 million in its first six months to the end of FY19, rising to $100 million in its first full financial year to June 2020.

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