Australia’s Point of Consumption Tax Still a Hot Topic
It seems that Australia is further restricting its gambling market, and the latest moves are definitely heading in that direction.
Only couple of days have passed since the federal government introduced amendments aimed at tightening up of the rules, when a new announcement came.
PoCT is Coming
The announced move wasn’t unexpected whatsoever, since it is a matter which was lately topping the headlines. Of course, we’re talking about the Point of Consumption tax (PoCT).
The government revealed the plans to introduce a PoC similar to the one used in the United Kingdom.
Scott Morrison, the federal treasurer, said back in March that the agreement to enforce a uniform PoCT had been reached and that PoCT would apply to iGaming revenue no matter if it originated from domestic or foreign-based markets.
Now, Morrison confirmed the state and territory governments had managed to finalize the talks and that a uniform PoCT would be introduced on a national level, excluding the Northern Territory.
An Important Financial and Social Question
Morrison was adamant the PoCT would be aimed at protecting the consumers and minimising the risks an unregulated market could bring, while there were many who would disagree.
It can often be heard that the tax is being introduced simply for the revenue’s sake, but the treasurer said those claims were totally misleading.
Morrison stated the question of PoCT was important from a financial perspective, but was even more important in a social context. He added that South Australia was a good example of a well modeled legislation, which could serve as a model for the future federal law.
According to available information, the PoCT would be between 15% and 20% of all gaming revenue from Australia-based players. Its adoption would pressure the operators to cut their expenses in order to survive, a move which had already happened in the United Kingdom after the introduction of PoCT.
PocT, though restrictive, would reopen Australia’s lucrative iGaming market, which suffered a tremendous blow last month, when the government blocked all unlicensed operators, without even offering them a possibility to obtain one.