Tasmania, the southern state in Australia is planning to bring a 15% point-of-consumption tax on all net gaming revenues. The government is Tasmania hopes to chip in $3.4 million in tax revenue annually by the new tax.
The new tax structure is reportedly going to come into effect from the first day of 2020. Tasmania would be the last Australian state to introduce such a tax as all others already have a point-of-consumption tax on all net gaming revenues in place.
A 15 percent point-of-consumption tax on all net gaming revenues is imposed on gambling operators in Western Australia, Queensland, and South Australia. While 10% is collected in New South Wales, it is 8% in Victoria.
According to a report from Iag the 15% point-of-consumption tax introduced in South Australiathrew a handbrake on that state’s racing industry and has almost brought it to its knees. In South Australia, the prize money has been cut, field sizes have shrunk, participants have fled interstate and jobs have been lost.
Starting off a much lower base, the Tasmanian government has today put that same handbrake onto Tasmanian racing and thrown its future into massive uncertainty.
Earlier in the year in May, Victoria became the first Australian state to implement the National Consumer Protection Framework.
The national framework was first created in December 2018. The governments of six Australian states, New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia had agreed to create and adopt common gambling policies to ensure better standards of consumer protection in the Aussie gambling industry.