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WA households and racing industry win big as Point of Consumption wagering tax is passed

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Online corporate bookmakers will now pay tax on their operations in Western Australia, after legislation passed through the Legislative Council.

Once the abolition of existing taxes and additional funding to the racing and sports industries is taken into account, the tax is estimated to raise additional revenue of about $94 million over the forward estimates.

This Point of Consumption tax reform package also brings Western Australia in line with other States in Australia, and places the local TAB in a stronger competitive position.

The tax will apply to operators’ net wagering revenue on bets placed by Western Australians, at a rate of 15 per cent. An exemption threshold of $150,000 per year will ensure that small bookmakers are excluded from the tax.

The reforms will also include the most generous industry package of all States and Territories.

By ensuring online and foreign-owned corporate bookmakers are taxed, the local racing industry has secured its future and 30 per cent of the tax collections. The reform will also help to improve the competitive position of bricks-and-mortar TAB agents.

Source: WA Government

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