In preparation for implementing the wagering and betting tax on 1 January 2019, we built an online platform where customers register, submit monthly returns and pay the tax. As part of its development, we tested for usability with stakeholders from within the online betting industry, refining the platform to make it even more user-friendly.
With a relatively small customer base, we were able to undertake a lot more one-on-one stakeholder engagement, providing tailored educational packages to assist wagering and betting operators move to the new taxation framework.
Replacing a point of supply betting tax, this point of consumption wagering and betting tax raised $48 million in its first six months of operation.
The tax, at a rate of 8%, applies to the net wagering revenue derived from all wagering and betting by customers located in Victoria.
There is an annual tax-free threshold of $1 million and the wagering and betting products captured by the tax include totalisator, fixed odds, simulated (trackside) racing and betting facilitated by a betting exchange or other commission-based agent.
The transition to this new tax required extensive liaison with the Department of Premier and Cabinet, the Department of Treasury and Finance, the Department of Justice and Regulation, and the Victorian Commission for Gambling and Liquor Regulation.
We also worked with the Revenue Offices in South Australia, Queensland, New South Wales, Western Australia and the ACT to ensure as much consistency as possible in the administration of the tax.