Hon Ben Wyatt LLB MSc MLA

Hon Ben Wyatt LLB MSc MLA

Former Treasurer; Minister for Finance; Aboriginal Affairs; Lands

Hon Paul Papalia CSC MLA

Hon Paul Papalia CSC MLA

Minister for Police; Road Safety; Defence Industry; Veterans Issues

    Reform of wagering taxation - introduction of a point of consumption tax

    7/09/2017 2:05 PM
    • Western Australia to introduce a 15 per cent point of consumption (POC) wagering tax that is broadly consistent with the South Australian model, with rebates to the local racing industry to ensure it is no worse off
    • Details of Western Australia's POC wagering tax will be informed by work co-ordinated by the Council on Federal Financial Relations to consider a nationally consistent POC wagering tax regime
    • Consultation to be undertaken ahead of implementation 

    The McGowan Government will introduce a new point of consumption wagering tax of 15 per cent of net wagering revenue of online betting companies offering their product in Western Australia.


    The point of consumption (POC) wagering tax is set to be introduced from January 1, 2019. 


    The new arrangements will replace the current tax framework and apply to all forms of wagering, including fixed odds and totalisator for racing and sports. 


    Under this new arrangement, all bets with registered wagering operators in Australia that are placed by customers within Western Australia will be subject to the POC tax regardless of the location in which the wagering operator is licenced. 


    On March 24, 2017, the Commonwealth and State Treasurers agreed to consider a common national approach for POC wagering taxes.  The growth over the last decade in online wagering, predominately through operators based in the Northern Territory, has reduced the effectiveness of the existing State-based taxation regime and put at risk the ability of the TAB to fund the racing industry.


    On July 1, 2017, South Australia became the first State in Australia to implement a POC wagering tax.


    The McGowan Government has retained the flexibility to adopt relevant national harmonisation elements as agreed by the Council on Federal Financial Relations and otherwise design specific elements of the new tax framework to be fit for purpose in the Western Australian wagering market. 


    The McGowan Government recognises that this is an important issue for the local racing industry.  A POC wagering tax will level the playing field between WA's TAB and operators licenced in other jurisdictions for wagers placed by Western Australian punters. 


    Further to this, in support of the industry, the Government will offset any direct material financial impacts that the introduction of a POC wagering tax may have on industry funding in Western Australia relative to the current tax regime. 


    Comments attributed to Treasurer Ben Wyatt:


    "Treasury will begin consultation with stakeholders on the implementation of a point of consumption wagering tax that is broadly consistent with the South Australian model.


    "This reform is about levelling the playing field of wagering taxation such that all wagering operators pay the same level of tax on bets placed by Western Australian punters, irrespective of the jurisdiction in which the operators hold their licence.


    "This is not about slugging punters with a new tax - rather, it's about reforming the system by moving away from the 'place of supply' to a 'point of consumption' tax model.


    Comments attributed to Racing and Gaming Paul Papalia:


    "This reform will benefit the local racing industry by levelling the tax playing field for the WATAB relative to the online corporate bookmakers.


    "Critically, the McGowan Government will ensure the local racing industry is no worse off relative to the current tax regime.


    "The sustainability and strong future of our racing codes in Western Australia remains our focus with these reforms."


    Treasurer's office - 6552 5900

    Racing and Gaming Minister's office - 6552 5600