As announced in the 2019-20 State Budget, the Tasmanian Government will introduce a Point of Consumption Tax on wagering from 1 January 2020.
Following consultation with industry stakeholders, it has been determined the Point of Consumption Tax will be set at a rate of 15 per cent of the net wagering revenue of betting companies, and will exclude the face value of free bets provided to bettors.
This rate is consistent with most other jurisdictions and there will also be a tax-free threshold of $150,000 in betting turnover.
Tasmania’s historical licensing arrangements for the provision of wagering services have been considered in the framing of this reform.
It is expected that additional revenue from this initiative will generate around $5 million per annum, with the net benefits to be appropriately shared with the local racing industry.
Legislation to give effect to this reform will be introduced into Parliament in November this year.