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The Victorian Government has announced that it will replace the current wagering and betting tax structures with a point of consumption wagering and betting tax from 1 January 2019.

This measure is yet to be considered by Parliament so this information is subject to change. This page will be updated as more information becomes available.

Who pays the tax?

Wagering and betting entities will be liable to pay the tax on their net wagering revenue from customers located in Victoria.

Taxable wagering and betting types

There are several types of wagering and betting products that can be offered in Victoria, including totalisator, fixed odds, simulated (trackside) racing and betting facilitated by a betting exchange or other commission-based agent. This tax will apply to the net wagering revenue derived from all wagering and betting types.

Tax-free threshold and tax rate

Wagering and betting entities whose annual net wagering revenue from customers located in Victoria exceeds $1,000,000 in a financial year will have to pay the tax.

The tax will apply at a rate of 8 per cent of net wagering revenue from customers located in Victoria in excess of $1,000,000.

Transitional arrangements

For the 2018-19 financial year, the annual tax-free threshold will be $500,000 as the tax will only apply to net wagering revenue earned in the second half of the financial year (1 January 2019 to 30 June 2019).

Tax calculation

The tax payable on a wagering and betting entity’s net wagering revenue will be calculated as follows:

  • For entities that take wagers and bets directly from customers — the net amount of revenue earned (monies staked minus winnings paid).
  • For entities that facilitate wagers and bets — the commissions earned from facilitating wagering and betting activity (for example, commissions earned operating a betting exchange).

Entities that directly take wagers and bets and also facilitate wagering and betting activity will combine their revenue from each source to determine their total net wagering revenue.

Administrative matters

The State Revenue Office is responsible for administering the tax, which includes collecting the tax and managing compliance.

Register

Entities liable to pay the tax will need to register with the State Revenue Office and lodge monthly returns.

Instructions on how to register, lodge a return and pay the tax will be published here in the coming months.

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