With wagering revenue in decline, state governments are facing a shortfall in their Point of Consumption Tax revenues, prompting rumours of a further tax hike in NSW.
When the NSW government released its half-year budget update in December, the revised projections from its taxes on gambling, were $46 million lower for the current financial year than they were last May.
The overall projection over the four-year forward estimates was $187 million lower, which given the racing industry receives 33 per cent, is a substantial haircut - around $60 million - and has prompted speculation that NSW could be destined for a tax hike.
That data comes after the 2022/23 revenue from Racing Taxes, better known as a Point Of Consumption Tax (POCT), in NSW fell some $81 million short of the original budget estimate.
Conversely, the half-year budget update in Australia’s other major racing jurisdiction, Victoria, also released in December, featured no change in projected Point of Consumption Tax revenue.
The government there had already factored in revenue plateauing in 2023/24 as the wagering market declined.
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