Nsw Gambling Tax
New South Wales will have a record $16billion budget deficit this year as the government borrows money to stimulate the economy following the coronavirus recession. Gambling and betting tax. History of Gambling Tax Legislature In Australia, the winnings from gambling are not taxed. This is for three reasons. Gambling is not recognised as a profession in Australia. 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. Online gambling operators in New South Wales (NSW) are bracing for a new tax regime that is expected to inject an additional AUD100 million (US$78.10 million) into the state funds.
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.”
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.”
Perrottet said the NSW Government would review the 10 percent rate in 18 months’ time.
We're responsible for administering, collecting and managing debts of gaming and wagering tax payable in NSW, on behalf of Liquor and Gaming NSW.
Find out more about COVID-19 (coronavirus) and gaming machine tax.
The taxes applied to gaming and wagering in NSW are based on:
Nsw Gambling Taxes
- what kind of gambling is being offered
- who's providing the gambling services.
Gambling tax rates
| Type | Description | Tax applied |
|---|---|---|
| Totalizator | A system that allows people to bet on outcomes and distributes betting revenue to the winning bets. | Percentage of player losses – ie bets placed less payouts. |
| Fixed odds | An operator agrees to pay specified amounts against specified events. | Rates vary. |
| Public lottery | A game of chance including a game such as lotteries, keno and soccer football pool. | Rates vary. |
| Point of consumption | Payable on all bets made by customers who are located in NSW. | 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold |
Legislation
Nsw Gambling Tax Rate
Gambling taxes are regulated under the following legislation.