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Amendments in Australia’s Gambling Tax Laws

Recently, the South Australian Council of Social Services was in the news since it is planning to bring about changes in its online gambling tax laws. The new laws will ensure that the gambling tax is based on where wagering is occurring. According to the welfare group in Australia, the licensed online gaming operators are not actually paying the right taxes.

These operators are from Norfolk and Northern Territory, according to a news website. The reason behind not paying taxes is that the Australian gambling laws acquire taxes only from the operators in the jurisdiction where they are licensed. These taxes are not based upon where the bets are placed.

In the Words of Ross Womersley

According to Ross Womersley, Chief Executive, the nation is greatly missing out on the tax income. In addition to this, he further added that the situation of tax avoidance arises where a gambling corporation is not incorporated in the jurisdiction but still has the license of a jurisdiction. This license of a jurisdiction like Norfolk helps these operators to lessen their taxes. Ross remarks that this situation is like encouraging virtual tax havens where operators are kept safe. In the opinion of Ross, the entire nation should have a clear agreement that the gambling operators must be taxed according to the wagers placed and not based on where they are licensed.

Recently, the federal government stood against the power of Norfolk Island to permit betting licenses to international gaming corporations. It was done after when the Norfolk’s gaming authority gave permission to an online betting exchange having links with some other controversial operators. No doubt, the Norfolk Island is independent governing territory but its Gaming Authority had earlier the right to render betting licenses to the operators.

About the Secret Purchases in Australia

According to the media reports, people in Australia make secret purchases a lot in an entire year. The amount of these purchases is around AUD 2700. In addition, a survey reveals that a total of AUD 11.3 billion is spent by the Australian in the whole year in making the secret purchases. Moreover, gambling is the second secret purchase while clothing purchases bring on the top. In the survey of 1035 people, 4.3 percent of it confessed that they place wager without informing about it to their spouses.

On the other hand, 4.2 percent of it had guilt of munching away foods that they have given up. To add on, 1.6 percent of the people confessed that they spend money on adult entertainment while few others use cigarettes secretly. The survey revealed that Australian men make the secret purchase of around AUD 4596 on an average while the women spend about AUD 1476. While talking about the people aged between 18 and 35, they hold debts from their purchases.

Therefore, the survey has given a clear insight of the spending pattern of Australians. It is true that many of them have a passion of gambling, which in turn can benefit the nation in terms of taxes.