Clubs Australia today welcomed the South Australian Government’s sensible and proactive approach to making sure online betting companies pay a fairer share of tax.
Online wagering and sports betting companies have long based their ‘official’ place of business in low taxing jurisdictions in order to minimise their tax contribution. Indeed, Clubs Australia understands online wagering operators located in the Northern Territory paid only $7 million in wagering tax in 2014-15 on gambling turnover of $9.7 billion.
By comparison, not-for-profit licensed clubs would pay in the order of $200 million in gaming taxes on a similar level of turnover.
The introduction of a point of consumption tax in South Australia is an Australian-first and is expected to raise $9.2 million in new revenue.
Clubs Australia Acting Executive Director Josh Landis welcomed today’s announcement.
“This measure means companies that make money in South Australia, will pay tax in South Australia,” he said.
“Online wagering companies had been getting away with avoiding state taxes for too long. Instead of paying taxes in the jurisdictions in which they make money, they’ve been using that cash to pay for wall-to-wall advertising.
“This is a fair and sensible reform, and we hope that other states and territories follow South Australia’s lead.
“It’s also great to see that online betting companies, many of which offer credit betting and inducements, will finally be contributing to the SA Gamblers Rehabilitation Fund.
“While today’s announcement is welcome, not-for-profit clubs in South Australia still have half the tax free threshold and double the tax rate of online bookies, both of which will affect the long-term sustainability of the industry.”