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Point of consumption tax

The point of consumption tax applies to all bets made by customers located in NSW at the time the bet was placed. Find out about the rates and thresholds.

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Important information for point of consumption tax customers

Liquor & Gaming NSW has issued industry guidance on calculating point of consumption tax in NSW which provides information on:

  • The audit campaign
  • Clarification on calculating point of consumption tax
  • Net NSW wagering revenue
  • The application of interest and penalty on tax defaults
  • Links to point of consumption tax resource information and contacts
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Point of consumption overview

Betting service providers licensed in Australia must pay a point of consumption tax on all bets made by customers located in NSW at the time the bet was placed:

  • in person
  • online, or
  • by phone.

Bets include:

  • bookmaker
  • betting exchange
  • totalizator
  • lay-off bets
  • free bets.

Betting service providers include:

  • bookmakers
  • a person who operates a betting exchange
  • a person who operates a totalizator.

There are no changes to betting tax and industry funding arrangements paid by the totalizator licensee.

We administer the tax, issue assessments and reassessments, collect the tax and approve payment arrangements. If you’re dissatisfied with an assessment or decision we’ve made, you can lodge an objection or request a reassessment.

Liquor and Gaming NSW is responsible for betting service providers complying with the point of consumption tax.

How to register

Betting service providers must monitor their wagering revenue and register for point of consumption tax within 7 days after the month their net NSW wagering revenue exceeds the annual threshold.

Calculating point of consumption

The point of consumption tax is calculated at 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold for bets that are placed in NSW. Find out more about how point of consumption tax is calculated.

Tax rates and thresholds

The current tax rate is 15 percent of the net NSW wagering revenue that exceeds the financial year threshold for bets placed in NSW.

DateRate
From 01/07/2022 15 per cent
From 01/01/2019 to 30/06/2022 10 per cent
 
DateThreshold
From 01/07/2019 $1 million
From 01/01/2019 to 30/06/2019 $500,000

The annual threshold:

  • applies as a reducing balance from the start of the financial year
  • can't be carried over to another period.

How to lodge a return

You must lodge a return for the point of consumption tax and pay within 21 days after the end of each month. You can submit a return using our online services.

How to make a payment

Payment information will be provided when you submit your monthly return. You can pay by BPAY, electronic funds transfer (EFT) or credit card. Interest and penalty tax may apply to late payments. Read more about making a payment.

Need more information?

Point of consumption tax is legislated under Part 4 of the Betting Tax Act 2001
For enquiries about compliance audits, contact Liquor and Gaming NSW
If you have questions about the point of consumption tax, contact us.