Australia Exploring Online Gambling Point of Consumption TaxPublished April 1, 2017 by Mike P
A point of consumption tax against online gambling is being discussed in Australia following government meetings in March 2017.
Australia federal treasurer Scott Morrison has revealed that the country’s federal government is currently exploring plans to implement a nationwide point of consumption tax on online gambling.
Agreement came on Friday 24 March 2017 with Morrison and his colleagues on the state level. For now, the next the stage of the process is to draft a proposal outlining how the point of consumption tax would function. Ultimately, Morrison wants a tax that is consistent across Australia on a national level.
A National Gambling Tax
Morrison is convinced that Australia needs a uniform tax as a means of minimising harm to sporting bodies and fans alike. Meanwhile, there are media outlets that are sceptical of Morrison’s assertion that the tax is not driven by a desire to increase federal revenue.
For perspective, the state of South Australia is forecasting annual revenue of AU$9.2 million when it begins leveraging a 15% point of consumption tax from July 2017. South Australia treasurer Tom Koutsantonis was the first major politician to call for such a tax when he initially suggested the concept back in 2015.
Impact on Northern Territory
Koutsantonis remains adamant that South Australia should draw a share of the revenue derived from residents living and gambling online from within the state. While South Australia is set for a potentially brighter outlook, the Northern Territory could see a hit on its business as a remote gambling jurisdiction.
The Northern Territory is the leading Australian state for delivering remote gambling licences and competitive tax breaks. This approach has drawn criticism from other Australian state that feel deprived from earning greater online gambling revenues.
Moving forward, Morrison has identified South Australia’s existing tax framework as an ideal reference point when addressing the challenge for the entire nation. In the meantime, no possible timeframe has been offered by Morrison, with the country already handling the current process of banning online poker and in-play sports betting.