SPORTS BETTING
Australia – Victoria to increase point of consumption tax from ten to 15 per cent
By Phil - 3 May 2023
The tax on sports betting losses is set to be increased in the Australian state of Victoria from 10 per cent to 15 per cent, as the government looks to create more revenue to compensate for losses in the horse racing sector.
Half of all point of consumption tax (POCT) revenue will be pumped back into the racing sector with the the remainder funding hospitals and charities.
The new tax levels will kick in from July next year. The point of consumption tax (POCT) was launched in Victoria in 2019 at eight per cent, the lowest in Australia. It was increased to 10 per cent in 2021. The rise to 15 per cent will bring it in line with other states such as New South Wales, Western Australia, South Australia and Tasmania. In Queensland and the Australian Capital Territory (ACT), the rate is 20 per cent.
Racing minister Anthony Carbines said: “These changes provide vital long-term certainty for the industry and ensure that it continues to be funded from wagering generated on its product – helping the industry to back jobs and events that bring in millions of dollars each year to communities right across the state.”
“Funding certainty helps drive important decisions around investments in events, programs, and infrastructure right across the state. It drives jobs and helps maintain vital commitments to protect the safety and welfare of animals and participants,” Racing Victoria chairman Brian Kruger added.
Tim Costello, Head of the Alliance for Gambling Reform, argued however: “This is cosmetic. It’s good given the crisis the Victorian budget’s in, but it’s a Band-Aid. It shouldn’t be going to racing.”
