NSW Government To Introduce Point Of Consumption Tax

The NSW Government will introduce a 10 percent point of consumption tax on all bets placed by NSW residents with online wagering operators in next week's State Budget.
All wagering operators accepting bets from NSW residents will pay the POC tax from January 1.
NSW will be joining Victoria, South Australia, Western Australia and Queensland with POC tax legislation aimed at raising more revenue from online bookmakers.
The NSW Government has taken into account that wagering operators already pay GST, payroll tax and product fees by imposing a 10 percent POCT.
Victoria will impose the lowest POCT tax rate of 8 percent, a move that ensures online operators will continue to support the Victorian racing industry.
South Australia and Queensland have gone to the other extreme by imposing POC tax rates of 15 percent.
NSW Treasurer Dominic Perrottet is expected to allocate 2 percent of money raised by the POC tax to the NSW racing industry.
“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,” Mr Perrottet said.
“We think 10 per cent strikes the right balance and that online corporate bookmakers should contribute their fair share.
“A 15 per cent additional tax on top of GST and race field fees would be an excessive burden on players in the market.
"We will review our 10 per cent rate in 18 months and also keep a close watch on how other states progress with their POCT.”
A tax free threshold of $1 million annual turnover will apply for all wagering operators.

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