Tasracing has confidently predicted a funding return to the industry after the Tasmanian government became the final state in the country to introduce a point of consumption (POC) tax on betting companies.
Tasmania treasurer Peter Gutwein has announced a 15 per cent tax on the net wagering of betting companies from January 1, 2020.
Under a point of consumption wagering tax, operators pay tax to the jurisdictions where the customers are located, no matter where the operator is located.
Tasracing chief executive Paul Eriksson is expecting a win for the state in terms of a rebate for the industry.
‘’It will assist to place Tasmania on a level playing field with interstate jurisdictions that have already introduced such a tax,’’ he said.
‘’We look forward to working closely with the government on its implementation and welcome the additional funding that is expected to flow to the Tasmanian racing industry going forward.’’
The South Australia racing industry also expected a rebate from the government when it rather famously became the first state to introduce the tax in July, 2017.
The government set the mark at 15 per cent and it was followed by Western Australia, the ACT and Queensland.
Victoria settled for an eight per cent tax, while NSW introduced the levy at 10 per cent.
But while all other states managed to negotiate at least a ‘’no worse off’’ deal with the respective governments following the introduction of the new tax, South Australian racing is yet to see a cent.
Racing participants in South Australia anxiously await a budget announcement next month to learn if industry lobbying has forced a shift from the government in terms of a future rebate.