South Australia reveals country’s first interstate gambling tax

| By iGB Editorial Team
The South Australia State Government is to introduce the country's first interstate gambling tax as part of an effort to raise additional income.

The South Australia State Government is to introduce the country's first interstate gambling tax as part of an effort to raise additional income.

The new tax will hit operators that are based interstate to benefit from lower tax rates, with South Australia estimating that it could generate as much as Aus$9.2 million (€6.1 million/US$6.9 million) in new revenue each year.

The ‘Point of Consumption’ tax will operate in a similar way to a law in the UK, where a 15% wagering tax is based on place of consumption.
 
The rate represents the first time that an Australian jurisdiction will target those companies based on where bets are placed, rather than where the company itself is located.

Ubet, Sportsbet and Ladbrokes are amongst the operators that will be hit by the new rate.

“The betting industry is rapidly changing and our tax regime needs to change with it,” Treasurer Tom Koutsantonis said, according to national newspaper The Australian.

“If betting companies are making profits from South Australian punters they should be paying tax in South Australia, not in whichever jurisdiction their head office and servers happen to be​ ​located.

“By implementing a wagering tax based on the place of consumption, we are ensuring that businesses are paying taxes in the jurisdiction in which they are making their money.”

Related article: Online in-play betting to remain illegal in Australia, says government

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