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Tax windfall for SA from interstate online gambling companies

A decision has been made that will allow state governments to charge online gambling companies tax based on the location of the gambler rather than where the head office of the company is located. It is estimated that the windfall to SA each year could be as high as $50 million as the state has around 74,000 people who have an online gambling account through one of 19 interstate betting operations. Currently none of these 19 operators pays tax in SA.

Treasurer Tom Koutsantonis said, " South Australian clubs and pubs pay their fair share of gambling taxes which go towards providing essential State Government services. It is important that online gambling operators pay taxes considering that they are generating profits based on betting activity of South Australians."

The plan has been supported by the Australian Hotels Association SA branch, the SA Council of Social Service and Clubs SA.

Clubs SA CEO Mike Penfold asserts that the online gambling options draw revenue from SA based organisations without putting anything towards public projects such as those that help problem gamblers.

Mr Penfold asserts that, "What online gambling does is take the revenue out of South Australia."

Current legislation provides that interstate gambling companies pay a fee of $1500 to enable them to operate in SA but they pay no taxes. These companies are allowed to advertise and conduct betting operations in SA but, due to the fact that they are not based in South Australia, they are not subject to taxes. It looks like that is all about to change ....


Source  :  The Australian, 19 April 2015