MEDIA RELEASE: Responsible Wagering Australia (RWA) is disappointed the Western Australian (WA) Government has announced a 15 percent Point of Consumption (POC) tax for the wagering sector, despite agreeing to take part in the Federal Government’s development of a nationally consistent taxation framework. A 15 percent POC tax significantly reduces the viability of licensed Australian wagering operators and increases the attractiveness of the illegal offshore wagering industry.

It will see Australian-licensed online wagering operators paying an effective tax rate of more than 40 percent on revenue from customers in WA, making the State amongst the highest taxing jurisdictions in the world for wagering products.

Far from ‘levelling the playing field’, online wagering operators will be forced to pay over three times the level of wagering taxation their terrestrial competitors pay in Victoria and twice what their terrestrial competitors pay in New South Wales. RWA’s Executive Director Stephen Conroy said the WA Government’s decision to go it alone will force operators to pass on the additional costs to WA consumers.

“The resulting downturn in wagering in the State will result in lower returns to the State’s racing industry and an increased reliance on government funding,” Mr Conroy said.

WA’s introduction of a POC tax is also occurring in an environment in which illegal offshore operators are competing directly for Australian customers. Yet these illegal operators pay no tax, make no financial contribution to domestic racing or sport, flout the consumer protections that Australian licensed operators adhere to and represent a threat to the integrity of our sport and racing codes.

This unilateral announcement was made without consulting the industry and despite the WA Government being a party to discussions currently occurring between the Commonwealth, States and Territories on a national approach wagering taxation and consumer protection measures. The WA Government’s decision needlessly puts at risk the potential of achieving nationally harmonised approaches to taxation and consumer protection in the wagering industry.