Aussie provincial government passes new online gambling tax law

The provincial government in Queensland has announced the introduction of a new 16 percent point-of-consumption tax aimed at online gambling companies accepting bets from its residents.

In so doing Queensland emulates a similar tax introduced earlier this year by the South Australian government, with other Australian provinces indicating that they will follow.

The Northern Territory, where many online gambling companies are licensed due to its reasonable fees and taxes, is likely to be impacted by the move to p.o.c. taxation, which will affect the bottom lines of major operators like Crownbet, Ladbrokes and Bet365, and “synthetic” online lottery agencies such as Lottoland.

Speaking to local media, Northern Territory deputy chief minister and treasurer Nicole Manison said that protecting the online betting industry in the Northern Territory and its hundreds of jobs is a top priority, and expressed concern that the impact of the p.o.c. tax may be felt in several important sponsored sports events.

She revealed that she has discussed the issue with federal government treasurer Scott Morrison regarding the possibility of a federal point-of-consumption tax rather than individual states taking the tax revenue.

This is the best course of action, she opined, to save the industry and NT jobs. A federal point-of-consumption tax would address some of the territorial inequities by providing a nationally consistent approach and be the best possible outcome for the Territory, she said.

The Queensland government says the new tax, which is expected to grab A$90 million over three years, is all about levelling the playing field and ensuring fair competition.

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