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Wagering taxation reform

The WA Government will introduce a new point of consumption wagering tax of 15 per cent of net wagering revenue of online betting companies offering their product in Western Australia.

The point of consumption (POC) wagering tax is set to be introduced from January 1, 2019.

The new arrangements will replace the current tax framework and apply to all forms of wagering, including fixed odds and totalisator for racing and sports.

Under this new arrangement, all bets with registered wagering operators in Australia that are placed by customers within Western Australia will be subject to the POC tax regardless of the location in which the wagering operator is licensed.

On March 24, 2017, the Commonwealth and State Treasurers agreed to consider a common national approach for POC wagering taxes.  The growth over the last decade in online wagering, predominately through operators based in the Northern Territory, has reduced the effectiveness of the existing State-based taxation regime and put at risk the ability of the TAB to fund the racing industry.

On July 1, 2017, South Australia became the first State in Australia to implement a POC wagering tax.

The Government has retained the flexibility to adopt relevant national harmonisation elements as agreed by the Council on Federal Financial Relations and otherwise design specific elements of the new tax framework to be fit for purpose in the Western Australian wagering market. The Government recognises that this is an important issue for the local racing industry.  A POC wagering tax will level the playing field between WA’s TAB and operators licensed in other jurisdictions for wagers placed by Western Australian punters.

Further to this, in support of the industry, the Government will offset any direct material financial impacts that the introduction of a POC wagering tax may have on industry funding in Western Australia relative to the current tax regime.

Source: Government of Western Australia.