Get to know the terms below to help your understanding of the point of consumption tax.
Annual threshold amount – The annual threshold amount is $150 000.
Bet – includes a wager on any approved contingency (including racing, sports, elections, current affairs, and entertainment), a free bet and a lay-off bet.
Betting operator – a person that holds a licence or authority (however described) under the legislation of an Australian jurisdiction to carry out betting services.
Betting service includes:
- accepting or offering to accept a bet;
- inviting a person to place a bet;
- facilitating the placing of a bet.
Free bet – is a wager made wholly or partly using an amount that is provided to the person making the wager by the betting operator with whom the wager is made; and is not immediately redeemable by the person for cash.
Lay-off bet – a wager made by a betting operator (the first betting operator) with another betting operator to reduce, wholly or partly, the liability of the first betting operator for bets made with them.
Net wagering revenue (NWR) – a betting operator's total wagering turnover (excluding the face value of free bets) less their total eligible winnings and refunds for the relevant return month.
Qualifying month - in relation to a financial year, for a betting operator, means the first month of the financial year in which the net wagering revenue of the betting operator, for the period starting on 1 July in the financial year and ending on the last day of the month, is more than $150 000.
Note 1: All net wagering revenue from 1 July in the financial year in which the betting operator first becomes liable for point of consumption tax and commences submitting returns must be included in the first return.
Tasmanian bet – a bet made by a person who is located in Tasmania when the bet is made.
Tax rate –the rate is 15 per cent of a betting operator's net wagering revenue from Tasmanian bets that exceeds the annual threshold amount.