Learn how bets are taxed and how operators register and pay.
Key information
Wagering and betting tax is paid by entities on net wagering revenue from bets placed by customers located in Victoria. It applies to products like fixed odds, totalisator, simulated racing and betting exchanges. The tax does not apply to gaming machines, lotteries or casino table games.
Entities that pay the tax include bookmakers, betting exchange operators and totalisator licensees. Operators covered by Commonwealth law, such as those offering lotteries or casino games, are excluded.
The tax applies to bets placed by Victorian customers even if the wagering product is offered in another state or territory. Operators licensed only outside Australia do not fall within the definition of a wagering and betting entity and are not subject to the tax. Overseas operators that are licensed in an Australian state or territory and legally operate in Victoria are liable for the tax.
Determining a customer’s location
The tax applies based on where the customer is located when they place a bet or use a betting service.
On-course and in-person bets
Bets placed at Victorian venues are counted based on the location of the transaction.
Online and phone bets
Operators must take reasonable steps to confirm the customer’s physical location (geo-location) at the time of the bet. If this is not possible, operators can rely on the customer’s residential address (for individuals) or principal place of business (for corporate customers).
Operators cannot rely on address information if they know or suspect it is incorrect. For betting exchanges, only commissions charged to customers located in Victoria at the time of the bet are captured.
We conduct compliance checks to ensure address information is accurate. Penalties and interest may apply if tax is not paid correctly.
Rates and calculations
The wagering and betting tax is 15% of net wagering revenue, including GST, from Victorian customers. A tax-free threshold of $1 million applies each financial year. If your net wagering revenue exceeds this threshold, you must pay wagering and betting tax.
To calculate your net wagering revenue:
- Direct bets: net wagering revenue is the total amount of all bets minus winnings. Direct bets include:
- fixed odds bets are included on the date the bet is placed and payouts (winnings or refunds) are included in the period they are paid or become payable
- free bets (also called bonus bets) are included even if the customer does not contribute any money. If combined with a paid amount, use the total bet amount
- odds boosts are treated as ordinary winnings and subtracted from net wagering revenue
- bet-backs (or ‘lay offs’) are included by the operator receiving a bet-back from a Victorian operator and do not affect the net revenue of the entity placing the bet-back.
- Facilitated bets: for operators who run a totalisator, betting exchange or act as an agent, net wagering revenue is the commissions earned from facilitating the activity.
If you take bets directly and also facilitate wagering, add both amounts to determine your total net wagering revenue.
Foreign currency bets
If a bet, payout or commission is in a foreign currency, report the amount in Australian dollars using the Reserve Bank of Australia exchange rate for either the day the bet was made or the day the amount incurs. If the rate is not available on that day, use the last published rate before that day.
Learn more about calculating net wagering revenue.
Registering
You must register online before the end of the first month in which you become liable for the tax.
Register for wagering and betting tax
You can update your registration at any time through the online portal, including:
- contact information
- managing user access
- managing members of a group.
If you are no longer liable for wagering and betting tax and do not expect to incur any liability in the future, you must notify us and submit a final return within 14 days. You can cancel your registration via the online portal.
Grouping
Businesses may be grouped and treated as a single entity so that only one tax-free threshold applies.
A wagering and betting group exists where:
- the businesses are related bodies corporate within the meaning of s50 of the Corporations Act 2001 (this situation is commonly known as a holding and subsidiary relationship)
- the same person has (or the same persons together have) a controlling interest in at least 2 businesses.
A wagering and betting entity includes all bodies and associations (corporate and unincorporated) partnerships and a trustee of a trust.
Members of a group must nominate a designated group entity (DGE) to register before the end of the month in which the group becomes liable. Each member of the group is responsible for the full tax amount if another member does not pay.
Read more about grouping.
Lodge and pay
Returns are lodged monthly and payments are due within 30 days of the end of each month. You must lodge a return even if no tax is payable for that month.
- Individual entities: Lodge a return for your own wagering and betting activity.
- Groups: the DGE lodges a single return that includes details for all group members and makes the payment on behalf of the group.
If you receive an assessment or reassessment, you can lodge an objection.
Late lodgement or payment may result in penalty tax and interest.
Follow the steps to lodge and pay your monthly return.
