The Queensland Government kept its promise to institute a 15% point of consumption gambling tax (POCT). The Australian state had announced its intentions to follow in the footsteps of South Australia and Victoria and introduce the new gambling tax. The tax is levied on all the bets placed in the state. The announcement was made on Tuesday as part of the Queensland budget to be implemented from 1 October.
Queensland in Unison with Other Australian State
The 15% POCT announcement follows similar declarations made by the Victorian Government as well as the South Australian Government to enact the new gambling tax legislation. Queensland had already made mention of the fact that it is committed to the collaborative fight against gambling addiction in Australia.
The tax will apply to the net betting revenue of casino operators, which will boost the state’s coffers. The decision on where to designate the funds is still outstanding, with consultation with the relevant stakeholders alongside the racing industry still pending. Only the Victorian government set its gambling levy at 8%, receiving backlash in the process for instituting the POCT almost half than that set by other states. The remaining states – Western Australia, New South Wales, and Tasmania – are set to announce their POCT percentage in the coming months.
Queensland Tax Revenue Stream to Receive a Boost
The POCT will impact the profits of all Australian betting operators licensed in the country. There is a turnover threshold of AU$300,000 in a financial year set to preclude smaller betting operators from having to pay exorbitant taxes. The Queensland Government estimates to make approximately AU$70.9 million in tax revenue in the first year.
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