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NSW sets PoC tax at 10%

| By iGB Editorial Team
New South Wales’ new Point of Consumption (PoC) Tax on betting has been set at 10%

New South Wales’ new Point of Consumption (PoC) Tax on betting has been set at 10%.

The tax on net wagering revenue will apply to all bets placed by people in the Australian state, which includes Sydney, from January 1.

The amount is less than the 15% applied in Queensland, Western Australia and South Australia. However, it is slightly more than the 8% recently imposed in Victoria, and could raise up to AUS$100m (€64.45/$75.92) per year.

The NSW government has introduced the tax to bring online out-of-state operators, many of whom are based in low-tax Northern Territory, such as Ladbrokes and Sportsbet closer into line with Tabcorp in terms of how much tax they pay.

As part of the reforms announced by NSW Treasurer Dominic Perrottet, 2% of all online gambling revenue will be redeployed by the racing industry.

“The introduction of a PoC tax is an important step to ensure that we are levelling the playing field given the wagering tax paid by onsite operators,” Perrottet said.

“We think 10% strikes the right balance and that online corporate bookmakers should contribute their fair share.

“However, a 15% additional tax on top of GST and race field fees would be an excessive burden on players in the market. We will review our 10% rate in 18 months and also keep a close watch on how other states progress with their PoC tax.”

Related article: Australian tax changes affect Paddy Power projections

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