For the first time, gambling taxes in Victoria are close to hitting the $2 billion mark, the parliamentary committee heard during an estimate hearing on Tuesday. Fiona Patten, the MP for the Reason Party, questioned Treasurer Tim Pallas on the figures which amount to a substantial $1.87 billion in the 2017/18 financial year. Read on.
Gambling Revenue in Victoria
On Tuesday, the parliament in Victoria was told that the gambling taxes were close to reaching a whopping $2 billion, with a total of $1.87 billion in the 2017/18 financial year.
“Two billion dollars on gambling seems to be a pretty large number for our state,” said Patten.
Pallas said that the government projects an increase of 1.6% a year in gambling revenue.
“In practical terms that is actually substantively below the revenue growth the state is getting overall, which is coming in at four per cent,” said Pallas. “Yes, it is increasing, but it’s increasing at a lesser level than the general background revenue in terms of the state,” he added.
New Lower Online Betting Tax
Recently, the government in Victoria announced their intentions to impose an 8% Point of Consumption Tax on online gambling. In simple terms, Victoria will tax online betting losses at a lower rate compared to other Australian states and territories.
In 2017, a total of 15% consumption tax on online gambling was levied in South Australia. Then, Western Australia and Queensland joined into the mix, vowing to tax online betting at the same rate in the near future.
However, Treasurer Pallas said the Victorian state government wishes to work with other states to come up with a similar model for Point of Consumption Tax. He added that the newly introduced tax would not affect the state’s racing industry.
The 8% betting tax is projected to benefit the state government $30 million extra, and will go towards hospitals and charities.
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