South Australia presses ahead with PoC plans
State government tasked with devising new taxation scheme that could raise as much as $47m for the state
The South Australian government has re-affirmed plans to tax online gambling operators on a point of consumption (PoC) basis, in a move that could raise AU$47m a year for the state.
The Treasurer of South Australia, Tom Koutsantonis, told Australian news website The Advertiser the government had been tasked with designing a plan to implement the new regime following the conclusion of a meeting with state and territory treasurers earlier this month.
“It is important that online gambling operators pay taxes considering that they are generating profits based on betting activity of South Australians,” Koutsantonis told the publication.
In February the Government of South Australia revealed it had been discussing a switch from taxing gambling on a place of supply to a place of consumption basis as part of a wider review of the state’s taxation regime.
However, Jamie Nettleton, partner at Sydney-based law firm Addisons Lawyers told eGaming Review this morning that the development of a new taxation framework was still in its early stages and could be difficult to implement.
“This review is at a very early stage and would represent a fundamental changeâ to the relationship between the Australian federal government and the governments of Australia’s states and territories in connection with the raising and sharing of tax revenues which has been in place for decades,” he said.
“As a result, and due to the possible effect of the proposals, the point of consumption regime may be more difficult to implement than the review suggests,” Nettleton added.
A State Tax Review Discussion Paper released by the authorities invited interested parties to respond to the proposals and according to a “top-four” accountancy firm, in a submission from a not-for-profit organisation for the licensed club industry, the regime could raise $4.7bn nationwide, with South Australia’s take thought to be worth $47m annually.
The Discussion Paper highlighted the government was prompted to assess the State’s gambling taxation regime due to increased competition from online operators which it said could impact the profits of current regulated operators.