Publishing its 2022/2023 state budget, the Treasury of New South Wales (NSW) has confirmed a 5% increase in the Point of Consumption Tax (POCT) related to wagering services.
As of July 2022, NSW will demand that all state-licensed bookmakers pay a POCT rate of 15% applied to all sports betting wagers (online and land-based).
NSW introduced a 10% POCT wagering tax in 2018, sanctioned by the state’s Liquor and Gaming Board as means to ensure that foreign-owned remote bookmakers applied for local NSW wagering licences and paid taxes.
2018 changes saw 10 bookmakers secure NSW licenses, including market leader Tabcorp Holdings which operates its TAB sportsbook brand as the only bookmaker that holds approved licences in all of Australia’s six states.
The 5% raise will see all Australian states become neutral on POCT tax charges as NSW follows Victoria, Tasmania, Western Australia, South Australia and the Capital State in applying a 15% POCT tax charge on wagering services.
Tabcorp had been a long-term advocate for Australian states to settle on a fixed POCT charge, as a means to ensure a level playing field between foreign and domestic incumbents.
“Today is a positive step forward in levelling the playing field in NSW,” said Tabcorp Chief Executive Officer Adam Rytenskild
“Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.’’
“We welcome the NSW Government’s announcement. Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy.”