Victoria treasurer announces 8 percent POC tax rate

Monday’s media reports that the Australian state of Victoria was set to break with fellow states Southern and Western Australia in its point-of-consumption tax rate (see previous report) proved true when Victorian treasurer Tim Pallas confirmed that the state government has agreed a rate of 8 percent on GGR – half that of other states that have so far declared their rates.

Pallas said the tax would come into effect on 1 January next year and raise about A$30 million in revenue, with most of the proceeds to be funnelled into Victoria’s hospitals and charities fund. About 1.5 percent will go to the racing industry to “make good’’ on losses from existing arrangements.

The decision triggered disappointment from both anti-gambling activists, who said the rate was too low, and Stephen Conroy, the executive director of industry trade association Responsible Wagering Australia, who claimed it was unfairly high and would have significant negative and far-reaching consequences for Victoria.

Pallas said the government’s decision followed wide consultation with interested parties and organisations.

The proposed tax will also apply to Tabcorp, raising the rate of tax for the Victorian wagering and betting licensee from six to eight percent.

Pallas said the onus would be on bookmakers to accurately declare each month their net revenue from bets taken within the state.