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The New Gambling Tax Hits Overseas Companies More

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The South Australian government is set to hike the gambling tax throughout all the states. The jurisdiction is targeting the gambling companies based on where the bets are placed, instead of the location of the company. The expectation among the gambling community is for this to actually affect the online gambling firms a lot more than land based casinos. The expected tax hike is rumoured to be in the region of 15%, which will then raise close to AUD$9.2million in the next revenue year.

The spokesperson of Casino Australia, Micheal Jessi said the measures are similar to those introduced in the UK in 2014 by the HMRC. Responding to the claims, South Australian treasurer, Tom Koutsantonis said the change is necessary as the gambling industry is growing rapidly.

He went on to say that if the gambling companies continue to make a profit from the South Australian gamblers, then it is only fair that they should pay their taxes in the South Australia. He further added that it makes no sense for the gambling firm to pay its taxes at the location of their head offices, although they earn the profits from the Australian market.

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Gambling Tax a target to overseas companies?

There have been whispers about the way the South Australian government has been dealing with the foreign gambling giants regarding the taxes. This is because the two Australian gambling companies, Tabcorp and Tatts Group will not be highly affected by the changes. Although the two companies have a relatively small customer base, they have outlets in the northern territory, which means they should also pay the 15% hike.

In the wake of this, the top Australian online gambling companies like Casino Australia, Sportsbet and Ladbroke are expected to be affected by the hike.

The move by the South Australian government has also angered the Australian Wagering Council, which is the sole representative of the overseas betting companies. The council said this is the low for the companies. They further added that they will have an urgent meeting will the treasurer Koutsantonis. They further said the imposition of the consumption tax will place a taxation burden and increase job losses as these companies, which may be forced to close shop.