Western Australia introduced its Point of Consumption Tax (POCT) on 1 January 2019. The tax applies to betting revenue generated from WA residents, regardless of where the operator is based.
WA’s tax rate is 15%. This is the same as Victoria and New South Wales. Queensland has a 20% rate, and the ACT has 25%. However, WA’s tax‑free threshold is significantly lower at 150,000peryear,comparedto1 million in the eastern states. This means smaller operators pay tax sooner in WA.
A major independent review is now examining the WA wagering tax framework. The review may recommend changes to the tax rate, the distribution formula, or both. This article covers the current rates, calculation methods, and the review’s implications.
Official source: Government of Western Australia
Current Wagering Tax Rate – 15% POCT
The current wagering tax rate in WA is 15%. It applies to taxable betting revenue from customers located in WA. A tax‑free threshold of $150,000 per financial year applies. Operators pay tax only on revenue above this amount. These rules have been in effect since 1 January 2019.
The tax applies to bets placed with an operator by a person located in WA. It also applies to a body corporate whose principal place of business is in WA. Betting operators must determine the customer’s location at the time the bet is made. They must take all reasonable steps to identify that location. If location cannot be determined, the customer’s residential address may be used.
WA’s 15% rate matches Victoria and New South Wales. However, WA’s threshold of 150,000 is much lower than the 1 million thresholds in those states. This means WA taxes operators from the first 150,000 of revenue, while other states allow 1 million tax‑free. Smaller operators feel this difference most directly.
POCT Rates and Thresholds by State
| State | POCT Rate | Tax‑Free Threshold |
|---|---|---|
| Western Australia | 15% | $150,000 |
| Queensland | 20% | $300,000 |
| Victoria | 15% | $1,000,000 |
| New South Wales | 15% | $1,000,000 |
| Australian Capital Territory | 25% | $50,000 |
How Tax Is Calculated – Free Bets and the $150,000 Threshold
Taxable betting revenue must be reported for each monthly return period. The calculation subtracts eligible payments from betting revenue earned for that period.
Betting revenue includes all fees and commissions from WA betting exchanges. It also includes WA pooled bets, general bets, and retained unclaimed winnings. Any other amounts received in relation to WA bets are also included.
Free bets are treated the same as any other bet. Their full face value must be included as revenue when the bet is placed. Free bets cannot be deducted from gross revenue.
Eligible payments are amounts paid by the operator to customers. In turn, these are deducted to determine taxable revenue. For general bets, all amounts paid to customers are eligible. For pooled bets, however, eligible payments include contributions into the pool and any amounts paid to customers above their entitled winnings.
The tax liability is calculated as follows: Betting Tax Payable YTD = (Taxable Betting Revenue YTD – $150,000) × 15%.
Example: If an operator has taxable betting revenue of 400,000 in July, the tax payable is 37,500 (250,000×15600,000). By August, the cumulative tax is 67,500. The payment for August is 30,000 (67,500 minus 37,500).
RWWA Tax Rates – Totalisator, Fixed Odds and Off‑Course Racing
Racing and Wagering Western Australia (RWWA) operates under a separate tax regime. Specifically, the Racing and Wagering Western Australia Tax Act 2003 sets specific rates for RWWA’s wagering activities.
For totalisator wagers, the tax rate is 5% of all money paid to RWWA. For off‑course racing wagers, the rate is 11.91% of gross revenue received by RWWA. Gross revenue is calculated as total money paid minus winnings paid or payable.
For fixed odds wagers on horse or greyhound races, the rate is 2% of all money paid to RWWA. For fixed odds wagers on other events, including sporting events, the rate is 0.5% of all money paid to RWWA.
These rates apply only to RWWA, not to corporate bookmakers. RWWA is a unique government trading enterprise. It operates WA’s TAB and also regulates the state’s racing industry.
Official source: Racing and Wagering Western Australia Tax Act 2003
RWWA Tax Rates Under the RWWA Tax Act 2003
| Wager Type | Tax Rate | Tax Base |
|---|---|---|
| Totalisator wagers | 5% | All moneys paid to RWWA |
| Off‑course racing wagers | 11.91% | Gross revenue |
| Fixed odds (horse/greyhound) | 2% | All moneys paid to RWWA |
| Fixed odds (other events) | 0.5% | All moneys paid to RWWA |
Independent Review – Future of WA’s Wagering Tax
In February 2026, the WA government launched an Independent Review of Racing and Wagering Western Australia. Specifically, the review aims to ensure the racing industry has a framework for long‑term financial sustainability. To that end, it is examining RWWA’s revenue base, governance arrangements, and legislative framework.
The review is specifically analysing factors that impact POCT collections and distributions. It is also considering options to increase RWWA’s POCT income. These options include adjusting the POCT rate, changing the distribution formula, or both.
The review also covers the TAB’s operational outlook. This includes the challenges of declining parimutuel wagering revenues. It also addresses the shift by consumers towards online and sports betting.
This review may lead to changes in WA’s wagering tax regime. Any changes would need to balance the financial health of the racing industry with the interests of wagering operators. The outcomes will be closely watched by both the racing industry and corporate bookmakers.
Official source: Department of Local Government, Sport and Cultural Industries
Western Australia’s wagering tax rate is 15% on net revenue above $150,000. The tax has been in place since 1 January 2019. Free bets must be included in revenue calculations.
The state’s threshold of 150,000 is significantly lower than the 1 million thresholds in Victoria and NSW. This means smaller operators pay tax sooner in WA.
RWWA operates under a separate tax regime with rates ranging from 0.5% to 11.91%. However, an independent review launched in February 2026 is examining the future of WA’s wagering tax framework. As a result, the review may recommend changes to the POCT rate, the distribution formula, or both.
Sources: Government of Western Australia, Racing and Wagering Western Australia Tax Act 2003, Department of Local Government, Sport and Cultural Industries, The Straight
What Is the Wagering Tax Rate in Western Australia?
Q1: What is the current wagering tax rate in Western Australia? ▼
The current Point of Consumption Tax (POCT) rate in WA is 15%. It applies to taxable betting revenue that exceeds the annual threshold of $150,000. This rate has been in effect since 1 January 2019.
Q2: How does WA’s threshold compare to other states? ▼
WA’s threshold is $150,000, which is much lower than the $1 million thresholds in Victoria and NSW. Queensland has a $300,000 threshold, and the ACT has a $50,000 threshold.
Q3: Are free bets included in wagering tax calculations? ▼
Yes. Free bets are treated the same as any other bet. Their full face value must be included as revenue when the bet is placed. Free bets cannot be deducted from gross revenue.
Q4: What are the tax rates for RWWA under the RWWA Tax Act? ▼
RWWA pays 5% on totalisator wagers, 11.91% on off‑course racing wagers, 2% on fixed odds horse/greyhound wagers, and 0.5% on fixed odds wagers for other events. These rates apply only to RWWA, not to corporate bookmakers.
Q5: Is WA considering changes to its wagering tax? ▼
An independent review of RWWA commenced in February 2026. It is analysing POCT collections and distributions. It will consider options to adjust the tax rate, the distribution formula, or both. Any changes would require legislative amendments.
