- New measure will see online and foreign-owned corporate bookmakers contribute to WA about $94 million over the forward estimates
- Reforms streamline wagering taxes in WA, with two existing betting taxes abolished
- Action follows comprehensive consultation with the local racing industry
Online corporate bookmakers will now pay tax on their operations in Western Australia, after legislation passed through the Legislative Council today.
Once the abolition of existing taxes and additional funding to the racing and sports industries is taken into account, the tax is estimated to raise additional revenue of about $94 million over the forward estimates.
This Point of Consumption tax reform package also brings Western Australia in line with other States in Australia, and places the local TAB in a stronger competitive position.
The tax will apply to operators' net wagering revenue on bets placed by Western Australians, at a rate of 15 per cent. An exemption threshold of $150,000 per year will ensure that small bookmakers are excluded from the tax.
The reforms will also include the most generous industry package of all States and Territories.
By ensuring online and foreign-owned corporate bookmakers are taxed, the local racing industry has secured its future and 30 per cent of the tax collections. The reform will also help to improve the competitive position of bricks-and-mortar TAB agents.
As stated by Racing and Gaming Minister Paul Papalia:
"This reform will benefit the local racing industry by levelling the tax playing field for the WATAB relative to the online corporate bookmakers.
"The sustainability and strong future of our racing codes in Western Australia remains our key focus.
"I thank the industry for being so engaged in the consultation process, and congratulate them on the overwhelming benefits they have secured with this package."
As stated by Treasurer Ben Wyatt:
"This is the right result for the State to have online corporate bookmakers pay their fair share of tax in Western Australia.
"I am also delighted with the outcome for the local racing industry, with the most generous industry package of all States and Territories.
"It is also a significant victory for the thousands of small business owners who work as TAB agents in WA."
