ANOTHER AUSSIE STATE CUTS ONLINE GAMBLING TAX RATE
16 October 2009
Northern Territory competes with Tasmania on
Internet bookie taxation
The news earlier this week that the Australian state of
Tasmania is to replace taxes for corporate bookmakers
with a flat fee of $256 000 a year (see previous
InfoPowa reports) appears to have triggered a
competitive policy decision from the Northern Territory
government.
The Northern Territory News reports
that the government is slashing taxes for online
bookmakers in a bid to hold off competition from other
Australian states.
The report specifically names
Tasmania, claiming it is trying to become a world hub
for internet gambling by capping state taxes for
bookies, and that it hopes to lure some of the NT-based
companies to Hobart.
The reduction in bookie
taxes is likely to cost the state government several
millions of dollars; there are 11 online bookies in the
NT - Betchoice, Betezy, Betstar, Centrebet, Centreracing,
International All Sports, Luxbet, NT TAB, Overtheodds,
Sportingbet and Sportsbet - employing some 250 people
and contributing A$10.5 million to the NT economy, the
newspaper reports.
Sportsbet owner Matthew Tripp
told Northern Territory News that he would keep his
operation in Darwin NT despite being courted by
Tasmania. He said his company would pay about $11
million in taxes if it operated from his home state of
Victoria.
"We're definitely staying in Darwin,"
he said. "A lot of our team comes from there."
Tripp added that the NT government had been "very
welcoming".
"They've been very hospitable, as
opposed to authorities in some of the southern states.
The NT Government earns a good dollar out of us.
"But they're entitled to because they've shown they are
in favour of economic growth."
NT Treasurer Delia
Lawrie confirmed that tax on profits would be capped at
$250 000.
"The potential of bookmakers leaving
the Territory is a major concern for the Henderson
Government as it would cost valuable jobs, support to
the local racing industry and revenue," she said.
"That's why, after careful consideration and in
order to preserve an industry presence in the Territory,
the Government is proposing to reform the bookmakers'
turnover tax regime so that it remains competitive with
other states.
"While these measures will reduce
tax revenue, on balance, inaction would have seen many
corporate bookmakers leaving the Territory, costing jobs
and would have severely impacted the local racing
industry."
Online Casino News Courtesy of
Infopowa
More news here.
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