Casino tax
Casino operators in Victoria pay tax on gaming revenue attributable to table games, gaming machines and commission based players.
Who pays the tax?
From 1 July 2023, casino operators in Victoria will be required to register with the Commissioner of State Revenue under the provisions of the Gambling Taxation Act 2023.
Casino operators will also be required to lodge returns and pay casino tax and the community benefit levy each month from 1 July 2023.
Lodge a return and make a payment
Monthly returns are required to be lodged with the Commissioner within 30 days of the end of each month.
Casino operators may also be required to pay additional casino tax each year.
Casino tax is paid by casino operators operating in Victoria based on gross gaming revenue. Further annual liabilities may be payable if annual gross gaming revenue exceeds certain thresholds.
A casino operator is the holder of a licence granted under the Casino Control Act 1991.
How the tax is calculated
Casino tax is calculated on a casino operator’s total gaming revenue for a month less any state tax credit for that month.
Casino tax payable is the sum of:
- the amount equal to 21.25% of the casino operator’s gaming revenue attributable to table games in the month, excluding commission based players
- the tax on the casino operator’s gaming revenue attributable to gaming machines in that month (see table below for rates), excluding commission based players
- 9% of the casino operator’s total commission based players gaming revenue in that month.
Table games
Gaming revenue attributable to table games is the sum of all amounts (including cheques and other negotiable instruments whether collected or not), received in any period by a casino operator from players other than commission based players in the conduct of playing of table games in the casino.
Revenue also includes the face value of free bets, less total winnings paid in that period by the casino operator to players of table games in the casino by players other than commission based players.
Gaming machines
A casino operator’s gaming revenue attributable to gaming machines is the total amount received by a casino operator from bets made on gaming machines in the casino by players other than commission based players, including any amounts in respect of the face value of any free bets, less the total amount of all prizes paid from that amount, including net prizes paid in relation to free bets (other than prizes paid into or out of a jackpot special prize pool) and the total of all amounts received by the casino operator from bets made on gaming machines by players other than commission based players that are paid into a jackpot special prize pool and that are required to be paid or payable as prizes.
A casino operator’s tax on gaming revenue attributable to gaming machines is the tax per gaming machine installed in the casino multiplied by the average number of gaming machines installed by the casino in the month calculated by dividing the sum of the total number of gaming machines installed in the casino on each day of the month by the number of days in the month.
The tax per gaming machine installed in the casino is the amounts of average gaming revenue attributable to gaming machines installed in the casino determined by multiplying those parts of that average gaming revenue specified in Column 1 of the table below by the rate specified in Column 2 of the table opposite those parts.
| The part of average gaming revenue attributable to gaming machines that: | Rate of tax |
|---|---|
| does not exceed $2,666 | 0.00% |
| exceeds $2,666 but does not exceed $6,666.67 | 46.70% |
| exceeds $6,666.67 but does not exceed $12,500 | 51.17% |
| exceeds $12,500 | 60.67% |
The average number of gaming machines installed by the casino in the month is the gaming revenue attributable to gaming machines installed in the casino in the month divided by the average number of gaming machines installed in the casino in the month, calculated by dividing the sum of the total number of gaming machines installed in the casino on each day of the month by the number of days in the month.
Commission based players
Total commission based players gaming revenue is the sum of:
- Commission based players revenue attributable to table games, plus
- Commission based players revenue attributable to gaming machines.
Additional casino tax
Additional casino tax is payable when a casino operator’s gross gaming revenue in a financial year exceeds the base amount.
The base amount for the financial year beginning on 1 July 2023 is $1.2 billion.
The amount of additional casino tax is specified in the table below:
| Amount by which gross gaming revenue in a financial year exceeds the base amount for that year | Amount of additional casino tax |
|---|---|
| Not exceeding $20m | 1% of the amount exceeding the base amount |
| Exceeding $20m but not exceeding $40m | $200,000 + 2% of the amount exceeding $20m |
| Exceeding $40m but not exceeding $60m | $600,000 + 3% of the amount exceeding $40m |
| Exceeding $60m but not exceeding $80m | $1.2m + 4% of the amount exceeding $60m |
| Exceeding $80m but not exceeding $100m | $2m + 5% of the amount exceeding $80m |
| Exceeding $100m but not exceeding $120m | $3m + 6% of the amount exceeding $100m |
| Exceeding $120m but not exceeding $140m | $4.2m + 7% of the amount exceeding $120m |
| Exceeding $140m but not exceeding $160m | $5.6m + 8% of the amount exceeding $140m |
| Exceeding $160m but not exceeding $180m | $7.2m + 9% of the amount exceeding $160m |
| Exceeding $180m but not exceeding $200m | $9m + 10% of the amount exceeding $180m |
| Exceeding $200m but not exceeding $220m | $11m + 11% of the amount exceeding $200m |
| Exceeding $220m but not exceeding $240m | $13.2m + 12% of the amount exceeding $220m |
| Exceeding $240m but not exceeding $260m | $15.6m + 13% of the amount exceeding $240m |
| Exceeding $260m but not exceeding $280m | $18.2m + 14% of the amount exceeding $260m |
| Exceeding $280m but not exceeding $300m | $21m + 15% of the amount exceeding $280m |
| Exceeding $300m but not exceeding $320m | $24m + 16% of the amount exceeding $300m |
| Exceeding $320m but not exceeding $340m | $27.2m + 17% of the amount exceeding $320m |
| Exceeding $340m but not exceeding $360m | $30.6m + 18% of the amount exceeding $340m |
| Exceeding $360m but not exceeding $380m | $34.2m + 19% of the amount exceeding $360m |
| Exceeding $380m | $38m + 20% of the amount exceeding $380m |
For subsequent financial years, the base amount will be calculated by reference to the all groups consumer price index (CPI) for Melbourne in original terms for the last reference period in the preceding financial year most recently published by the Australian Bureau of Statistics (ABS) divided by the all groups CPI in original terms for Melbourne for the corresponding reference period one year earlier than the reference period most recently published by the ABS multiplied by the base amount for the previous financial year.
If the consumer price index is discontinued, suspended or otherwise altered to such an extent that an adjustment cannot be made in the reasonable opinion of the Commissioner of State Revenue, the base amount is to be determined by substituting another index that is comparable in the Commissioner of State Revenue’s opinion.
Additional casino tax – commission based players gaming revenue
Additional casino tax is payable if the casino operator’s total commission based players gaming revenue in a financial year is less than $100 million.
The amount of the additional casino tax is $10 million minus the casino operator’s total commission based players gaming revenue in the financial year divided by 10.
Calculating the community benefit levy
The community benefit levy is 1% of a casino operator’s total gaming revenue in a month. The community benefit levy is payable monthly.
State tax credit
A casino operator’s state tax credit for a month is the amount determined under Division 126 of A New Tax System (Goods and Services Tax) Act 1999 (Cth).
Administration
The Commissioner of State Revenue is responsible for administering casino tax, collecting the tax and managing compliance.
Interest and penalty tax may apply where a casino operator fails to pay the correct amount by the required date.
Reporting requirements
Register
A casino operator must register for casino tax with the Commissioner of State Revenue.
Existing casino operators must register within 14 days after the end of the first month in which the operator became liable.
Lodge a return and pay the tax monthly
Once registered, casino operators must submit a return and pay the correct amount of tax monthly.
Returns and payment are due within 30 days of the end of each month.
Casino operators must submit a return even if no tax is payable for the month.
Lodge a casino tax monthly return
News and updates
-
20 November 2023
Our 2022–23 Annual Review is now available
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3 October 2023
State Taxation Acts and Other Acts Amendment Bill 2023
-
22 May 2023
Victorian Budget 2023–24
- View more news
