Presenting new budget plans, the South Australia state treasury is set to introduce a ‘place of consumption’ (POC) tax for all licensed gambling operator services regardless of Australian jurisdiction.
Updating the media, SA treasurer Tom Koutsantonis detailed that the budget measure expects to generate approximately AUS $9.2 million a year from betting operators targeting SA consumers.
The SA POC will aim to introduce a 15% tax on net revenues generated from state players with a tax-free threshold of $150,000 regardless of whether the operator has a state licence. Koutsantonis declared that his treasury would aim to introduce the measure by 1 July 2017.
Supported by SA state officials, Koutsantonis detailed that a new tax framework was needed to counter the complexities of Australia’s gambling sector which was shifting its focus to digital channels.
Koutsantonis stated that Australia’s legacy gambling framework could not effective against the growth of digital gambling enterprises, hence a POC tax measure was needed
“If betting companies are making profits from South Australian punters they should be paying tax in South Australia, not in whichever jurisdiction their head office and servers happen to be located” Koutsantonis detailed to Australian news sources.
SA’s move to introduce POC taxes comes as multiple Australian ministers and industry stakeholders urge the government to implement a nationwide framework for online gambling services.
Australia has moved to review its ‘Interactive Gambling Act of 2001’, amid concerns that regulatory policy was inconsistent against consumer digital habits and new technology entering the market such as in-play (live) betting.