The provincial government of South Australia could rake in as much as A$50 million ($38.8 million) from a new federal law allowing state governments to collect taxes from online gambling companies based on the location of the gambler, not the registered office of the company.
The Australian newspaper reported that around 74,000 South Australians have an online gambling account through 19 interstate betting operations, but none of the gambling companies pay any tax in SA.
Treasurer Tom Koutsantonis told The Advertiser that, following a meeting of state and territory treasurers this month, SA has been given the job to work out how to implement the scheme.
“It is important that online gambling operators pay taxes considering that they are generating profits based on the betting activity of South Australians,” he said.
A report by an accounting firm submitted to the provincial government tax authorities, suggested that the new tax could be worth A$4.7 billion nationally over a ten year period, giving South Australia around A$4.7 billion annually.
The submission states: “So in this state, a tax for online gambling set at 40 percent to match that of existing ‘for profit’ gambling businesses would generate many millions for South Australia’’.
Under current rules, gambling companies pay a A$1500 fee to allow them to operate and advertise in SA, but no taxes.