Australian Gambling Faces a New Tax Clampdown

Casino_canberra_sign_civicThe Australian economy is amongst many in the global marketplace that have enjoyed a relatively smooth transition from primary industries to the information sector. However, some recent government initiatives that have aimed to increase regulation around the booming online gambling industry have led many to question the logic behind such moves.

The plans were unveiled by Nationals senator Bridget McKenzie, and they primarily deal with setting a new blanket tax rate across the gambling industry with all revenues earned to be distributed equally across the nation’s individual states.

It is hoped that by introducing such legislation that the government would be able to more adequately control the rapidly-growing online gambling sector that has done much to revive Australia’s flagging casino industry.

But many commentators have stated that such a move could be yet another desperate act by a government keen to address the problem of massive over-spending. Other ancillary benefits hoped to be gained from the moves would be that the extra revenues would be used to lend assistance to regional development programmes and harm minimisation initiatives.

But one of the biggest overhauls that McKenzie outlined was a move to prohibit Australians from gambling with foreign operators. Such a move would be thought to outrage many in the Australian gaming sphere who have enjoyed the relative freedoms brought by the internet to play roulette on sites such as Spin Palace in a way that is convenient for their style of living, and unencumbered by overly-draconian legislation.

Similarly, many fear that such moves could be leading Australia to develop more isolationist tendencies that would run counter to many of the predominant global trends and harm Australia’s already shaky economy.

Despite such fears, there are many who have stated that the tax regulation around gambling does need an overhaul as certain areas in Australia such as Northern Territory pay minimal taxes, whereas other areas are free to exploit various legal loopholes. Such inconsistencies have revealed the speed with which gambling in Australia has changed, with traditional casinos suffering in relation to the convenience offered by their online counterparts.

And what many have claimed is that Australia’s gambling system needs a thorough updating in order to match other entertainment options that are currently available to the Australian public. Whereas music streaming sites such as Spotify and Apple Music have been welcomed in giving the Australian music business much needed dose of activity, it’s felt that without foreign investment and innovation, Australia’s gambling industry could fail far behind and prove harmful for the nation’s overall economy.