Victoria announces Point of Consumption tax of 8% of net wagering revenue

The Victorian Government has announced that as from 1 January 2019, a Point of Consumption Tax (PoCT) will apply to wagering and betting companies at a rate of 8 per cent of the net wagering revenue derived from all wagering and betting activity by customers located in Victoria.

In a statement on Monday the Government said that the move will better align Victoria’s wagering system with the increasingly digital betting environment, and revenue collected will go to the State’s Hospitals and Charities Fund.

“We’re making sure online betting companies pay their fair share of tax in Victoria,” said Victorian Treasure Tim Pallas.

“We will continue to consult the industry and other stakeholders as we finalise legislation to implement the Point of Consumption Tax.”

The Government has undertaken extensive consultation with key industry stakeholders on design considerations and potential industry impacts since the PoCT was included in the Victorian Budget 2017/18.

The statement said that the PoCT will be implemented in a way that does not adversely impact the Victorian Racing Industry (VRI), which is a major part of Victoria’s sporting landscape and cultural tradition.

The Government is committed to the principle that the racing industry will be no worse off as a result of this initiative, and will be contributing 1.50 per cent of taxable net wagering revenue to the VRI.

The Government said it will also put a review mechanism in place to assess the implementation of the PoCT, including its impact on the VRI. It also said that it will continue to work with other states and territories to extend a common POCT model to other jurisdictions. A harmonised approach will deliver better outcomes for industry and taxpayers.

South Australia has operated a 15 per cent Point Of Consumption tax since July 1st, 2017 and Western Australia at the same level since January 1st, 2018. 

Link to the Victorian Government Point Of Consumption Tax Fact Sheet