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Australia sets outs plans for new national Point of Consumption tax

The government of Australia intends to introduce a new point-of-consumption (PoC) tax for online operators, similar to the regime that has been introduced in the state of South Australia.
Treasurer Scott Morrison said today (March 24th) that he will be working with state and territory governments on devising a consistent approach to taxing online gaming. He explained that the move is not about "raising revenue for revenue sake" but to pave the way for the introduction of a nationwide consumer protection framework.
The tax would likely be based on the South Australian model, where online operators will be subject to a 15 per cent tax on net wagering revenue from July 1st. It will apply to bets on horse, harness and greyhound racing, as well as sports and general betting.

Treasurer Scott Morrison described South Australia's 15 per cent tax rate as a good starting point for a national model.

The government of South Australia has estimated that it will earn around AUD$9.2m in its first full year of PoC implementation, however, it has been strongly opposed by operators who have described it as a "punters tax" that will make it unfeasible for them to offer their services.

The prospect of a national PoC tax has also drawn criticism from the state government of the Northern Territory, home to a number of international bookmakers, with the Australian Treasurer singling out the state as the only one opposed to the move.

The news out of Australia comes a day after the government of New Zealand announced plans to impose its own point-of-consumption tax on offshore operators. 

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