Victoria will impose an 8% point-of-consumption tax on online betting agencies, barely half the rate introduced or promised in other states.
The tax would start from January 2019 and would raise an estimated $30m a year, according to the state’s treasurer, Tim Pallas.
Critics of the gambling industry had expressed concern that Victoria’s rate would undercut those of other states.
The ACT this week is set to announce a 15 % point of consumption tax levied on all bets, in line with a similar tax already introduced in South Australia last July. A similar rate is tipped for Western Australia and Queensland.
Anti-gambling groups had pushed for a rate of 15% or more and for the money to be spent on hospitals and social welfare. Corporate bookmakers and their lobbyists wanted a lower tax rate, saying it could put jobs at risk. Tabcorp-Tatts, which operates tote betting, wanted a national rate.
The Victorian tax will start in January, dependent on legislation passing parliament. The tax will apply on all bets placed in Victoria and companies will be responsible for working out the location of people placing the wagers.
Sources: AFR & The Guardian