Point of consumption tax on wagering

​​From 1 January 2020, a point of consumption (POC) tax applied to all betting operators licensed in Australia where their net wagering revenue (NWR) from Tasmanian bets exceeds the annual tax-free threshold. 

The POC tax rate is 15 per cent of the NWR and the annual tax-free threshold amount is $150 000.

Requirement to register for POC tax

A betting operator must register for POC tax within seven days after the end of the month in which they become liable to pay POC tax. Betting operators become liable to pay POC tax in Tasmania when they exceed the annual tax-free threshold of $150 000 in NWR from Tasmanian customers.

Monthly reporting and payment requirements

Betting operators must:

  • register on the online portal (discussed below);
  • lodge monthly NWR returns no later than 21 days after the end of each month; and
  • pay any POC tax liability in relation to a reporting month no later than 21 days after the end of each month (Refer to Note 1 in Glossary of terms).

Failure to register, and late lodgement of returns or payment, may result in penalties and a requirement to pay interest on any outstanding debt.

Online registration and reporting portal

An online POC tax portal has been developed for electronic registration, monthly lodgement of returns and payments via Tasmanian Revenue Online.

For guidance on using the online portal, refer to the Point of Consumption Tax - System Help Guide.

POC tax calculation and exclusion of free bets

A free or bonus bet is a wager made using wholly or partly an amount of credit offered by a betting operator on a particular betting market or product. For the purpose of calculating the POC tax, the face value of free bets, ie the value of the credit, is excluded.

The POC tax of 15 per cent is payable on the net amount of wagering revenue earned by the betting operator from Tasmanian customers - ie money wagered minus winnings paid; and/or commissions earned facilitating bets such as from a betting exchange. An example of how NWR is calculated is provided below in frequently asked questions.

Identifying Tasmanian customers

All reasonable steps must be taken by betting operators to identify when services are used by Tasmanian customers at the time the bet is placed.

It is acceptable for a betting operator to rely on the residential address registered by an individual customer or a business address registered by a corporation. However, if the betting operator knows or has reasonable grounds to suspect that the registered address is not the location of the person when the bet is made, the operator must use the location at which the bet is made.

Exemptions regarding timing of monthly return

On-course bookmaker exemption

On-course bookmakers that exceed the annual threshold must register but are only required to lodge and pay tax on an annual basis. Otherwise, on-course bookmakers can choose to lodge monthly returns by giving written notice to the Commissioner of State Revenue.

Further information

This webpage is updated periodically as the POC tax framework is implemented. Further guidance by way of frequently asked questions (FAQs) is provided below.

If the FAQs have not answered your question, contact the Liquor and Gaming Branch on (03) 6166 4040 or lagb.wagering@treasury.tas.gov.au.


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