Nsw Gambling Tax
David Leyonhjelm, lead candidate for the Liberal Democrats, today announced he will push to abolish gambling taxes if successful in winning the balance of power at the NSW election.
Gambling and betting tax revenue is expected to be $2.8 billion in 2020/21, an increase of almost $50 million or 1.8 per cent. Mining royalties are forecast to fall to $1.4 billion.
Gambling tax revenue In 2017-18, the NSW government received $2.3 billion in tax revenue from gambling (in real terms, up from $1.8 billion in 2000-01).26 This represented 7.4% of total State tax revenue and 2.9% of total State revenue.27 4. Problem gambling Many people enjoy gambling. However, for a number of participants it can. There are regulations on pokies in Australia – you can’t place a bet of more than $5, for example, and NSW recently put a 20% cap on new pokie machines in problem gambling areas – but they appear to have little impact. NSW officials affirmed that Australia’s old gambling-tax regime was made obsolete by the online gambling era and that it left Tabcorp solely footing the bill. “In practice,” reads an excerpt from the New South Wales government consultation paper on the issue, “wagering tax on racing and sports betting is currently only paid by Tabcorp.
“Abolishing gambling taxes in NSW would be a $2.7 billion annual tax cut equivalent to $340 per person,” he said.
“Under the Liberal Democrats, you’d no longer be stung by the government when you put a sure bet on Winx at the races, have a cheeky spin on the pokies at your local club or hotel, put it all on black at the casino, or buy a lotto ticket at your local newsagent.
“You could have more bets as well as go home with more money in your pocket.
“The NSW State Government taxes gamblers more than in other States. Nationwide, gambling taxes are $280 per person, whereas they are $340 per person in NSW.
“Our State Governments are addicted to gambling tax revenues. And the NSW Government is the biggest junkie of all. It’s time we made the States go cold turkey.
“For most gamblers, gambling is a leisure activity like any other. Their pastime shouldn’t be taxed more than anyone else’s pastime.
“Only a small minority of gamblers suffer such lack of control that they experience excessive losses.
“Gambling taxes don’t even help problem gamblers; they just add to their losses. Problem gamblers don’t see the reduction in potential pay-offs resulting from gambling taxes, and they don’t reduce their gambling as a result of lower potential payoffs.
Nsw Gambling Taxes
“Gambling taxes go into the general coffers of State Governments rather than towards problem gambling programs, which account for a tiny fraction of gambling tax collections.”
The Liberal Democrats’ plan to abolish gambling taxes is part of a fully-costed alternative budget, to be publishedlater this month, involving each State delivering budget surpluses and significant cuts to taxes and government spending.
Nsw Gambling Tax Calculator
New South Wales has become the latest state to slap online bookmakers with a point of consumption tax.
NSW treasurer Dominic Perrottet will announce a 10 percent tax on online bets made by NSW customers when he delivers the state budget next week.
South Australia, Western Australia and Queensland have all introduced a 15 percent tax on online bets made in their respective states.
Victoria will introduce the lowest point of consumption tax in Australia of eight percent on January 1. The NSW tax on online bets will also come into force on January 1.
The NSW point of consumption tax is expected to raise $100m per year with a portion of the amount collected to head back into the state’s racing industry.
Perrottet told The Australian the tax on online betting companies was to ensure Northern Territory-licenced organisations paid a fair amount of tax in NSW.
“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.
“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.
“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 receive fair compensation and that existing parity arrangements are unchanged.”
New Gambling Tax Law
The TAB wanted the government to impose the same 15 percent rate as other states on online bookmakers. Perrottet said the 10 percent was fair for corporate bookmakers, who also pay race fields fees in NSW.
“We think 10 percent strikes the right balance and that online corporate bookmakers should contribute their fair share,” Perrottet said.
“However, a 15 percent additional tax on top of GST and race field fees would be an excessive burden on players in the market.”
Nsw Gambling Tax Rates
Perrottet said the NSW Government would review the 10 percent rate in 18 months’ time.