Another iGaming POC tax on the horizon?

The government of of South Australia has floated the idea of introducing a UK-style point of consumption tax for online gambling.

Talk of taxing online gambling at the “place of consumption” rather than the “place of supply” has been included in a discussion paper looking at a wider overhaul of the state’s current tax system.

Introduction of such an iGaming POC tax would be a pretty ambitious undertaking for a government doesn’t currently regulate online gambling at all. Whether revenues raised would be greater than the cost of administering and enforcing the tax is questionable given the states population of 1.6 million.

Can’t exactly see all the major operators queuing up to apply for their South Australian online gambling license and handing over a percentage of all (any) net gaming from players in South Aus.

This is an idea that in all probability will remain just that…an idea. A fact not lost on Premier Jay Weatherill when describing the paper as not necessarily reflecting the governments intentions in relation to tax reform, but helping prompt discussion and public submissions.

He was quoted as saying,

“The State Government is open to radical reform to our state taxation system,”

“Nothing is out of bounds, be it taxes, levies or concession”

Probably fair to say the  POC tax was one of the more radical suggestions contained in the paper.

The need for wider tax reform has come in the wake of SA’s declining manufacturing (auto in particular) industry and the end of the mining boom, leaving growing holes in the state’s budget. Certainly not the only state of Australia with this problem at the moment.