Does the POC tax capture all types of gambling?
Tasmania's POC tax applies to all wagering and betting types or products offered to customers in Tasmania, including race wagering and sports betting, or betting via a totalizator or betting exchange. Other gambling products, including gaming machines, casino table games, lotteries, keno, raffles, bingo and scratch cards are not subject to the tax.
Does the POC tax apply to betting operators or products licensed in other states?
Yes. Betting operators licensed in Tasmania or in other Australian jurisdictions offering and accepting bets from customers located in Tasmania are liable to pay Tasmania's point of consumption tax.
How is net wagering revenue calculated?
The net wagering revenue of a betting operator includes revenue derived from all betting services provided to customers located in Tasmania. The POC tax of 15 per cent is payable on the net amount of wagering revenue earned by the betting operator from Tasmanian bets - ie money wagered minus winnings paid; and/or commissions earned facilitating bets, such as from a betting exchange.
Example: Fixed odds bets
A Tasmanian bet of $50 is placed with a betting operator, which includes a free bet component with a face value of $20. The Tasmanian bets wins $100. The betting operator deducts $20 from $100 to recoup the cost of the free bet. This results in a net payout of $80 to the customer.
The following table illustrates how the betting operator is to calculate net wagering revenue for this winning bet, and also includes the calculation required in the event of a losing bet.
| | WINNING BET | LOSING BET |
| Total bet amount (A) | $30 ($20 free bet is not included) | $30 ($20 free bet is not included) |
| plus total fees and commissions | $0 | $0 |
| less total winnings (B) | $80 | $0 |
| less refunds | $0 | $0 |
| Fixed odds NWR = (A-B) | -$50 NWR | $30 NWR |
Is a bet included in the calculation of net wagering revenue when the bet is placed, or on settlement of the bet?
Bets other than with a totalizator or betting exchange should be included in the calculation of net wagering revenue at the time the bet is placed with the betting operator. Any payout relating to these bets (including winnings or a refund of the bet amount if the bet is cancelled) would be included in the month in which the payout is paid or becomes payable.
How are free bets treated?
Free bets (also known as bonus bets) made by customers located in Tasmania with a betting operator are not to be included as bets received or accepted in calculating net wagering revenue. Also, there is to be no reduction in net wagering revenue for awarding or providing free bets to Tasmanian customers.
Is the net wagering revenue the GST inclusive amount?
The net wagering revenue of a betting operator for the purposes of the POC tax is the GST inclusive amount.
Are Tasmanian on-course bookmakers subject to the POC tax?
Yes, Tasmanian on-course bookmakers are liable for the tax. However, the reporting and payment requirements are annually instead of monthly, which is intended to be less onerous.
How is the POC tax enforced against betting operators?
The Taxation Administration Act 1997 (Tas) gives the Commissioner of State Revenue the power to undertake various compliance and investigation activities. In addition, the Commissioner can impose administrative penalties and interest for tax defaults, such as late payments.