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A proposal has been made in Victoria to raise the tax on sports betting

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The proposal to raise the point of consumption tax is anticipated to enhance Victoria’s racing sector. In 2019, Victoria introduced the tax at a rate of 8%, which was later increased to 10% in 2021.

The local government now aims to raise the tax further to assist the state’s horse racing industry. According to the latest proposal, the current rate of 10% may be increased to 15%, bringing it in line with other states like Tasmania, NSW, Western, and Southern Australia. However, even with the proposed increase, the tax rate for sports betting would still be lower than Queensland’s current rate of 20%.

After Tabcorp, Australia’s largest gambling firm, contended that offshore online gambling operators were not contributing a “fair share of taxes” to Victoria, the local government put forward the POCT increase proposal. If approved, the tax is projected to go into effect from July 2024.

The racing industry is expected to benefit from the tax increase

The horse racing sector is a significant contributor to the economy of Victoria, generating nearly AU$5 billion ($3.33 billion) annually and supporting over 35,000 jobs. With more than 100 clubs in the state, the racing industry is a crucial part of the economy. However, like all industries, it was not immune to the devastating impact of the COVID-19 pandemic.

To support the racing sector in the state, lawmakers have proposed an increased tax, with 7.5% out of the total 15% tax to be distributed to the racing industry. Anthony Carbines, the minister for Racing, explained that the proposed changes are aimed at providing long-term certainty for the industry, protecting thousands of jobs and events that bring in millions of dollars annually to communities across the state. In an interview with The Sydney Morning Herald, Carbines expressed confidence that the proposal would help the industry back jobs and events that are crucial to the state’s economy.

Jerome McNamara
Jerome McNamara
Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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