Victoria’s wagering tax has changed rapidly. The state introduced a Point of Consumption Tax (POCT) in 2019 at 8%. The rate rose twice since then. The current rate is 15%, effective from July 2024.
The government meant the higher tax to boost revenue and fund racing. But the expected windfall has fallen short. This raises questions about further tax hikes. This article covers Victoria’s wagering tax framework.
Current Wagering Tax Rate – 15% POCT
The current wagering and betting tax rate in Victoria is 15% of an operator’s net wagering revenue derived from customers located in Victoria. A tax-free threshold of $1 million per financial year applies, meaning operators pay tax only on net revenue exceeding this amount. This rate and threshold have been in effect since 1 July 2024 and will remain valid until 30 June 2026.
The government introduced the POCT on 1 January 2019 at 8%, and the rate has increased significantly since then. The government raised it to 10% in July 2021, then to 15% in July 2024, coinciding with the end of Tabcorp’s long-term wagering joint venture with the state government. The 15% rate now applies uniformly to all wagering operators active in Victoria, regardless of where they hold their primary licence.
Historical POCT rates in Victoria:
| Period | Rate | Tax-Free Threshold |
|---|---|---|
| 1 Jan 2019 – 30 Jun 2019 | 8% | $500,000 |
| 1 Jul 2019 – 30 Jun 2021 | 8% | $1,000,000 |
| 1 Jul 2021 – 30 Jun 2024 | 10% | $1,000,000 |
| 1 Jul 2024 – 30 Jun 2026 | 15% | $1,000,000 |
New South Wales and South Australia match Victoria’s 15% rate, while Queensland and the ACT have moved to 20% and 25% respectively.
Official sources: State Revenue Office (current rates), State Revenue Office (historical rates)
Legislative Framework – Enforcement and Applicable Products
The Gambling Regulation Act 2003 (Part 6A) sets the wagering tax. The tax applies to net revenue from bets placed by customers in Victoria. This includes online and phone bets. Operators must use geo-location to confirm customer location.
Products subject to the tax: fixed odds betting, totalisator betting, simulated racing, betting exchanges, and commission agents.
Products not subject to the tax: pokies, lotteries, and casino table games.
Overseas operators with an Australian licence are liable for the tax. The register does not cover purely offshore operators. The State Revenue Office (SRO) enforces compliance. Penalties apply for incorrect reporting.
Official sources: State Revenue Office, VGCCC, Parliament of VictoriaOffice (understanding wagering and betting tax), VGCCC gambling data, Parliament of Victoria (Bill 2018 second reading), Responsible Gambling Victoria (POCT announcement)
How Tax Is Calculated – Net Wagering Revenue and the $1 Million Threshold
The tax rate is 15% on net wagering revenue above $1 million per year.
For direct betting operators: net revenue = total bets placed (including free bets) minus winnings and refunds.
For facilitators (betting exchanges, totalisators): net revenue = commissions earned.
Regulators require free bets to be included as revenue. Operators cannot deduct them. Free bets count at their full face value when placed. Example: If an operator has 600,000 net revenue in a month, and the 1 million threshold is already used, tax payable is 90,000(600,000 × 15%).
Operators must register with the SRO before they first become liable. Returns are due monthly. An annual reconciliation is also required.
Official sources: State Revenue Office (calculation guide)
Tax Revenue and Racing Industry Funding
POCT revenue has missed government forecasts. The 2024/25 forecast dropped from 435millionto406 million. The 2025/26 forecast was cut by another $36 million.
Raising tax rates does not always raise more revenue. Wagering turnover has fallen. Racing Victoria reported an 11% drop in wagering turnover. That led to an $11.4 million deficit. The organisation is cutting up to 15% of its workforce. The government projects the total shortfall at 139 million over four years. This includes 70 million that the government meant for racing.
When Victoria raised the POCT to 15%, it promised more money for racing. Previously, only 1.5% of net revenue went to racing. That share has increased. The Treasurer decides the racing payment each month. They split the 15% tax: 7.5% to government, 7.5% to racing.
In 2024/25, Victorians lost over 7.3 billion to gambling.Total state gambling taxes reached 2.47 billion. Wagering tax from Tabcorp and others totalled $362 million.
Pokies remain Victoria’s biggest source of gambling revenue. The state expects 5.9 billion in taxes over four years.By 2028/29, the peak tax will reach 1.5 billion annually.
Official sources: The Straight, The Guardian, VGCCC
Recent and Proposed Reforms
Several reforms are under way.
Gambling Legislation Amendment Bill 2025
This bill gives the minister more power over gambling licences. It introduces “premium payments” for monitoring and lottery licences. The opposition calls this “taxation dressed up as reform.”
Racing industry funding review
POCT shortfalls are forcing a review of racing funding. The Parliamentary Budget Office says Victoria could save $500 million over ten years by ending greyhound racing subsidies. The authorities have made no decision yet.
National POCT harmonisation
Discussions continue on harmonising POCT rates across states. Victoria sits at 15%, same as NSW and SA. Queensland is at 20%, the ACT at 25%. Industry warns that high rates may drive operators away, reducing the pool for racing.
Official sources: Parliament of Victoria, The Guardian, The Straight
Victoria’s wagering tax rate is 15% on net revenue above $1 million. The rate has risen from 8% in 2019. POCT revenue has consistently missed forecasts. Wagering turnover is falling. The racing industry is feeling the pressure. The current rate structure expires on 30 June 2026. Further changes are likely.
Sources: State Revenue Office, VGCCC, Parliament of Victoria, The Straight, The Guardian
What Is the Wagering Tax Rate in Victoria?
Q1: What is the current wagering tax rate in Victoria? ▼
The current Point of Consumption Tax (POCT) rate in Victoria is 15%. It applies to the net wagering revenue of operators that exceeds the annual tax-free threshold of $1 million. This rate has been in effect since 1 July 2024.
Q2: How has Victoria’s POCT rate changed over time? ▼
Victoria introduced its POCT on 1 January 2019 at 8%. The rate increased to 10% in July 2021, and again to the current 15% in July 2024. The tax-free threshold has been $1 million since July 2019 (except for the initial six months at $500,000).
Q3: Are free bets included in wagering tax calculations? ▼
Yes. The full face value of free bets must be included when calculating net wagering revenue. Free bets or bonus bets are included in the total amount of all bets, regardless of whether the customer contributed any stake.
Q4: How is POCT revenue distributed? ▼
The POCT is split, with approximately 7.5% of net wagering revenue returned to the racing industry through the Victorian racing industry payment, and the remaining 7.5% retained by the government. Distribution is determined by the Treasurer after consulting the Gaming and Racing Ministers.
Q5: Has POCT revenue met government expectations? ▼
No. POCT revenue has consistently underperformed forecasts. The 2024/25 revenue was downgraded to $406 million from $435 million, and 2025/26 projections have been cut by an additional $36 million. This suggests that raising tax rates does not always produce proportionate revenue increases.
