State Governments Vie for Top Honours in Bookie Taxes
Online bookmakers continue to see a government raid on their profits, with Victoria, Queensland and now, New South Wales adding hefty levies on the net profits in the form of a point of consumption task.
You might think the bookies would counter with markets offering punters odds on which state will win the prize for highest tax and perhaps toss in some over/unders in the bargain.
Punters and bookies have until January 1 to prepare for new taxes in South Australia, Western Australia and Queensland, all of which have set the taxation level at 15 percent.
Punters might give serious thought to making a shift to Victoria, where the grab is only eight percent.
The revenue estimates coming in are staggering.
Queensland is expecting to generate about $70 million. NSW expressed the belief that $100 million could be raised. Some of the money collected in NSW will be directed back into the state’s racing industry.
Racing Queensland is attempting to have all of the funds sent to racing codes.
Most of the bookies are based in Northern Territory and have escaped paying state taxes to the other states, direct taxes at least.
With the straight face that only an experienced bureaucrat is capable, NSW treasurer Domini Perrottet told The Australian, “The introduction of a point of consumption tax is an important step to ensure that we are levelling the playing field given the wagering tax paid by onsite operators. Following an extensive consultation period with stakeholders, this decision will resolve the disconnect between the jurisdiction where gambling activity occurs and where it is taxed.”
NSW is going for a 10 percent point of consumption tax in order to reduce the tax burden, with Perrottet saying that he thought the 15 percent amount some of the other states will take, on top of taxes already in effect.
The announcements by the various States are no doubt good news to the illegal gambling industry, where taxes are non-existent.
Those with tunnel vision declare the tax is just because only those who play will pay, but punters will no doubt respond by ordering fewer toppings on their carryout from Eagle Boys, which will affect the poor high school student behind the counter.