The Victorian government’s expected returns from racing and sports betting taxes have been slashed by $36 million for the 2025/26 financial year as the expected windfall from an increase in the Point Of Consumption tax rate has fallen short of expectations.
Victoria lifted its Point Of Consumption Tax (POCT) rate from 10 per cent to 15 per cent at the start of the current financial year, coinciding with the end of its long-term joint venture with Tabcorp.
It had predicted in last year’s state budget that it would generate an extra $158 million in tax revenue via racing and sports betting taxes in 2024/25 as compared to 2023/24.
But in the 2025/26 budget released on Tuesday, it is now expected that the overall return for this financial year will be $406 million, $29 million less than what was budgeted.
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