If your net wagering revenue from customers located in Victoria exceeds $1,000,000 in a financial year, you have to pay the point of consumption wagering and betting tax.
Who pays the tax?
Wagering and betting entities are liable to pay the tax on their net wagering revenue, including GST, from customers located in Victoria at the time of making a bet.
Wagering and betting entities include:
- A registered bookmaker.
- The wagering and betting licensee in Victoria.
- Any person registered or licensed in Victoria, or another state or territory, to accept bets or provide a service through which bets are made.
Taxable wagering and betting types
There are several types of wagering and betting products that can be offered in Victoria, including totalisator, fixed odds, simulated (trackside) racing and betting facilitated by a betting exchange or other commission-based agent. This tax applies to the net wagering revenue derived from these wagering and betting types.
Tax-free threshold and tax rate
Wagering and betting entities whose annual net wagering revenue from customers located in Victoria exceeds $1,000,000 in a financial year have to pay the tax.
The tax applies at a rate of 8% of net wagering revenue, including GST, from customers located in Victoria in excess of the tax-free threshold of $1,000,000.
The tax payable on a wagering and betting entity’s net wagering revenue is calculated as follows:
- For entities that take wagers and bets directly from customers — 8% of the net amount of revenue earned (total amount of all bets minus winnings paid).
- For entities that facilitate wagers and bets (i.e. operating a totalisator, a betting exchange or acting as an agent) — 8% of the commissions earned from facilitating wagering and betting activity (for example, commissions earned operating a betting exchange).
Entities that directly take wagers and bets and also facilitate wagering and betting activity combine their revenue from each source to determine their total net wagering revenue.
||Net wagering revenue for month
||Net wagering revenue for year to date
||Tax-free balance (of $500,000)
||Taxable net wagering revenue for month