NSW Government Reviewing Tabcorp Proposal to Raise POCT to 20%
Australia’s New South Wales (NSW) government reviewing a proposal from Tabcorp to increase the point of consumption tax (POCT) to 20% in the state.
Tabcorp suggests 20% POCT increase for NSW gambling operators.
LISTEN TO THIS ARTICLE:Currently, gambling operators in NSW pay a POCT rate of 15%. Tabcorp’s proposal suggests increasing this to 20%, matching the rates in Queensland and the Australian Capital Territory. NSW raised its rate from 10% to 15% in June 2022, following an initial introduction of a 10% rate in January 2019.
The POCT is applied based on where the bets are placed, not where the operator is located. This ensures all operators active in NSW are taxed within the state, regardless of their licensing location.
In addition to the POCT increase, Tabcorp’s proposal includes several other recommendations for legislative and licensing reforms. These reforms might require operators to enter agreements with the racing industry and impose a 10% shareholder cap.
Related: Tabcorp Receive Hefty Fine for Permitting Underage Gambling in Victoria
NSW Treasurer Urges Operators to Pay Fair Share
The NSW government stated that any decision on the proposal would consider the value for money, benefits to taxpayers, and the potential for a sustainable funding model for the NSW racing industry. They are seeking feedback from wagering operators and other affected parties.
NSW Treasurer Daniel Mookhey argued that gambling companies should contribute their fair share and guaranteed that the proposal will undergo strict scrutiny.
More Regulation News
The Minister for Gaming and Racing, David Harris, who has previously highlighted the pros of the cashless gaming trial, discussed the economic importance of the NSW racing industry, which generates significant revenue and supports many jobs.
The NSW racing industry generates billions of dollars for the NSW economy and sustains tens of thousands of jobs. The NSW government wants to ensure the industry has a sustainable future for all those who make a living from it and participate in it and that the public is getting its fair share from all involved.
Harris added that the proposal must meet the interests of both the broader community and the racing industry stakeholders before any elements are implemented.
Tabcorp Views Proposal as a Positive Development
In response to the government’s plans, Tabcorp issued a statement welcoming the move to establish a formal review process. The company believes that the proposed reforms would create a fairer competitive environment and modernize retail exclusivity, akin to recent changes in Victoria and Queensland.
RELATED TOPICS: Regulation
Latest News
Business
China-Backed Real Estate Developer Ordered to Pay $1.6 Billion in Casino Fraud Case
Oct 23, 2024
Most Read
Star Entertainment Escapes Loss of Sydney Casino License, but Still in Trouble
Oct 17, 2024Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for NSW Government Reviewing Tabcorp Proposal to Raise POCT to 20%