New Gambling Taxes to Be Applied in South Australia
The online gambling scene in Australia, is always chancing. The latest change to occur is the new taxes in South Australia that will be applied to the wagering companies that is estimated to raise a total of 9.2 million dollars in new revenue per year. This new taxes will be introduced in the new state budget. The state government is going to introduce the so called “Location of Consumption” tax of fifteen percent on the net revenue of all of the betting companies that offer their gambling services in the state of South Australia.
This is considered to be the 1st time that one of the Australian Jurisdictions to start taxing wagering companies based upon the location of the placed bets, instead of the location where the betting company itself is based. Tom Koutsantonis, the SA Treasurer has stated that this tax would be applicable on harness, horse as well as greyhound racing, as well as other sports like soccer and the AFL. This will start from the first of July of next year. This is also going to be applicable on bets on the federal elections winners and the Academy Awards winners.
Mr Koutsantonis has stated that the gambling industry in Australia and South Australia in specific is changing rapidly, and this is why the tax regime and system has to change to cope with these changes. If the wagering companies are gaining profits from the South Australian players, then they should pay taxes to the state of SA, and not in the place where their servers and head office are located. He also added that he believes that the racing industry is not going to be badly affected as a result of this new tax. The legislation that is going to allow this new tax is going to accompany the parliament’s budget bills.
This new Tax is expected to be applied to UBet as well as other licensed SA bookmakers, the interstate betting companies such as TABs as well as commercial entities like Ladbrokes and Sportsbet. Like most tax laws, there will be a tax free threshold, which is proposed to be equal 150,000 for all betting providers.
The first ever 500,000 dollars to be raised every year are going to be contributed to the Gamblers Rehabilitation Fund, which is considered to be the 1st time the wagering industry has contributed to that helpful fund.
This sure sat well with Xenophon MP who wants the tax revenue to help the problem gamblers. He stated that a report was released almost a week ago that found a major loop hope in the revenue bucket that is related to the gambling taxes.