New POCT Announced In Victoria For Online Betting Sites
May 22, 2018
The Government of Victoria has announced that the state will be introducing a new 8% point-of-consumption tax on all online betting sites in the next year. The new proposed rate is lower than any other state in Australia, with many other states (such as Queensland, South Australia and Western Australia) setting its rates at 15%.
Although the newly planned POCT still needs to be passed, it is estimated that it will increase the revenues for the Government of Victoria by at least AU$30 million a year.
Victoria POCT Receives Mixed Response
So far, the Government of Victoria's new tax has been met with a mixed response. Some gambling groups (such as Responsible Wagering Australia) have welcomed the lower tax rate, stating that 8% is more manageable than 15%. It is argued that some betting firms may struggle to remain profitable with a 15% POCT.
However, one of the parties unimpressed with the rate is the nation's most established wagering brand, Tabcorp. The group has stated that a 15% POCT will do more to level the playing field. It is important to note that the group already pays tax on its land-based betting operations.
Tabcorp is not the only group disgruntled by the lower rate. Organisations in favour of stricter laws being instituted for online gambling (such as the Alliance of Gambling Reform) are not all happy either. Some have stated that Victoria's lower tax rate might minimise the efforts of other states to control the pastime.
The Real Winner with Victoria's New POCT
Online betting firms, such as Ladbrokes, Crownbet and Bet365, are likely celebrating a victory with Victoria's low POCT tax rate. However, many analysts believe that its probably established land-based betting operations (such as Tabcorp) who had already been paying tax before who are the real winners here. Increased taxes a potentially more competitive market, with some former online bettors perhaps moving to towards using land-based options.
However, this is all speculation as the true effect of Victoria's new tax still remains to be seen. For more news on Australia's online betting industry, remember to keep visiting AustralianCasinoSites.com - the nation's premier online casino site!