Tax hike backlash

RESPONSIBLE Wagering Australia CEO Justin Madden has issued a stinging broadside to the NSW government following the announcement on Tuesday to increase the Point of Consumption Tax (POCT) levy.

Revenue collected from the Point of Consumption tax will rise from 10 to 15 per cent from July 1, which represents a 50 per cent increase.

It’s anticipated the move will raise up to $750m over the next four years. Thirty-three per cent will be returned to the racing industry and the remainder will stay in government coffers.

It was also announced that Tabcorp, which holds the exclusive retail wagering licence in NSW, would receive a $30m payment from the government over the next 18 months, offsetting the amount of additional tax it would be in line to pay as a result of the POCT hike.

The news triggered a scathing response from Responsible Wagering Australia, which represents corporate bookmakers Entain, Betfair, Sportsbet, Pointsbet, Bet365 and Unibet.

“It’s extremely concerning to see the NSW Government cave into another backroom campaign to deliver a single operator such a clear market advantage with little consultation with the wider industry,” Madden said.

“This Perrottet Plan needs real scrutiny in light of the integrity scandal plaguing the Queensland Government and its own backroom wagering tax deal.

“Industry and taxpayers deserve to know why the NSW Government has backflipped on its commitment to competition to pursue a lopsided taxation policy that will significantly benefit one player to the detriment of all others.

“How can business and taxpayers trust a government that breaks its promises and fails to properly consult?”

Tabcorp chief executive Adam Rytenskild said the NSW government’s move was a “positive step” in creating a more level playing field.