QLD’s betting Consumption Tax lifted from 15 per cent to 20 per cent

QLD’s betting Consumption Tax lifted from 15 per cent to 20 per cent

The Queensland government has undertaken the biggest shake-up of wagering taxation in decades, axing the myriad of separate agreements it had in place, and instead simplifying the racing industry’s major revenue stream by making betting companies all pay the same rate on turnover.

 

Yesterday’s landmark deal will see the current complex and convoluted agreements scrapped, leading to Queensland’s betting revenue sourced from an increased Point of Consumption Tax (POC) – lifted from 15 per cent to an Australia-high 20 per cent – and the current race eld fees imposed on wagering service providers including Racing Queensland’s major partner Tabcorp.

 

 

For the rst time in Queensland, the tax will also apply to bonus bets offered to punters by bookmakers in an attempt to entice them to bet. The Palaszczuk Labor government will also increase the state racing body’s share of the tax on punters from 35 per cent to 80 per cent, it was announced yesterday, potentially leading to an increased spend on racing infrastructure and prize-money.

 

However, the planned legislative changes, which are expected to come into effect on December 1, are not a simple add-on to racing’s revenue, with some of Queensland’s betting taxes being axed and covered by the extra POC levy. Racing Queensland will also reap an immediate $150 million windfall from its principal wagering partner Tabcorp, which agreed to settle a more than three-year dispute over POC taxes the regulator believed the betting giant was liable to pay.

 

Fifty million dollars of the backdated payment will be reserved for investment in infrastructure projects by Racing Queensland across the three codes of thoroughbred, harness and greyhound racing. A Racing Queensland spokesperson described the shake-up of the wagering taxes as “a positive for the Queensland racing industry and its long-term sustainability”. “Since the onset of Covid-19, Australia has experienced an abnormal trading environment, with lockdowns, reduced sporting content and restricted travel all contributing to increased wagering and digital consumption,” the spokesperson told ANZ Bloodstock News yesterday.

“During this time, WSPs have been aggressive with their gratuities (bonus bets) and customer acquisition strategies, benefitting from the disparity in their licencing costs compared to the premium that TAB has paid through its higher share of wagering revenue. “e tax reform applies consistently to all WSPs, ensuring they all pay the same rate and creating an environment where Racing Queensland can reinvest through industry funding, infrastructure enhancements and prize-money increases.”

 

Tabcorp managing director and chief executive Adam Rytenskild claimed the new agreement was “great for clubs, great for local and small business and it’s great for racetracks right around the state and a stronger TAB is great for punters as well”. “On a relative basis, TAB currently pays double the fees to the local racing industries compared to other wagering operators. Going forward we will all pay the same in Queensland,” Rytenskild said. Tabcorp will still oer on-course betting