Betting Tax Act 2001

This Act is the Betting Tax Act 2001.

This Act commences on 1 July 2001.

In this Act—

Chief Commissioner means the Chief Commissioner of State Revenue.

exercise a function includes perform a duty.

function includes a duty.

meeting for greyhound racing means any meeting at which greyhound racing (that is, racing between greyhounds in competitive pursuit of a lure activated by mechanical means) is carried on.

meeting for harness racing means any meeting at which harness racing is carried on.

meeting for horse racing means any meeting (other than a meeting for harness racing) at which horse racing is carried on.

race meeting means a meeting for horse racing, meeting for harness racing or meeting for greyhound racing.

racecourse means any land that is used to hold or conduct a race meeting.

racing club means a club, association or body of persons or body corporate formed for promoting or controlling horse racing, harness racing or greyhound racing, or for holding race meetings.

totalizator has the same meaning as in section 6 of the Totalizator Act 1997.

totalizator licensee means the holder of a licence under the Totalizator Act 1997.

This Act is to be read together with the Taxation Administration Act 1996, which makes provision for the administration and enforcement of this Act and other taxation laws.

It is the intention of the Parliament of New South Wales that the operation of this Act should, as far as possible, include operation in relation to the following—

things situated in or outside the territorial limits of the State,

acts, transactions and matters done, entered into or occurring in or outside the territorial limits of the State,

things, acts, transactions and matters (wherever situated, done, entered into or occurring) that would, apart from this Act, be governed or otherwise affected by the law of another State, a Territory, the Commonwealth or a foreign country.

Without limiting subsection (1), it is the intention of the Parliament of New South Wales that the provisions of this Act have an operation in relation to the things, acts, transactions and matters referred to in that subsection even if the rules of private international law (whether at general law or as provided by legislation) would require the application of a law other than this Act instead of the provisions of this Act.

Notes included in this Act do not form part of this Act.

Betting tax is payable by a totalizator licensee on the commission deducted (under section 69 of the Totalizator Act 1997) from the total amount invested in each totalizator conducted by the licensee.

The tax payable is—

the relevant percentage of the total amount so deducted each day on which the totalizator licensee conducts a totalizator on one or more events or contingencies, or

any lower percentage of that amount that the Governor may declare, on the recommendation of the Minister, by order published in the Gazette.

The relevant percentage is—

in respect of a totalizator conducted during the period commencing on 1 July 2015 and ending on 30 June 2016—16.2%, or

in respect of a totalizator conducted during the period commencing on 1 July 2016 and ending on 30 June 2018—13.5%, or

in respect of a totalizator conducted during the period commencing on 1 July 2018 and ending on 30 June 2019—12.17%, or

in respect of a totalizator conducted during the period commencing on 1 July 2019 and ending on 30 June 2020—10.7%, or

in respect of a totalizator conducted during the period commencing on 1 July 2020 and ending on 30 June 2022—7.6%, or

in respect of a totalizator conducted on or after 1 July 2022—3.49%.

The tax is payable by the totalizator licensee conducting the relevant totalizator.

The tax is payable within 7 days after the day in respect of which the tax is payable.

A tax is not payable under this section on any amount that is applied by the totalizator licensee in rounding up an amount calculated as dividend.

Betting tax is payable on totalizator roundings.

The tax payable is the relevant percentage of the total amount of roundings arising in respect of each day on which a totalizator is conducted by a totalizator licensee on one or more events or contingencies.

The relevant percentage is—

in respect of a totalizator conducted during the period commencing on 1 July 2015 and ending on 30 June 2016—16.2%, or

in respect of a totalizator conducted during the period commencing on 1 July 2016 and ending on 30 June 2018—13.5%, or

in respect of a totalizator conducted during the period commencing on 1 July 2018 and ending on 30 June 2019—12.17%, or

in respect of a totalizator conducted during the period commencing on 1 July 2019 and ending on 30 June 2020—10.7%, or

in respect of a totalizator conducted during the period commencing on 1 July 2020 and ending on 30 June 2022—7.6%, or

in respect of a totalizator conducted on or after 1 July 2022—3.49%.

The tax is payable by the licensee.

The tax is payable within 7 days after the day in respect of which the roundings arose.

In this section—

rounding means an amount that would ordinarily form part of a dividend but that is retained by a licensee as a result of the rounding down of an amount calculated as dividend.

Betting tax is payable on net earnings in connection with the total amount of bets placed with a totalizator licensee in respect of an approved betting activity conducted by the licensee on each day on which such an activity is conducted.

The tax payable is the relevant percentage of the amount obtained by subtracting from the total amount of bets placed with the totalizator licensee in respect of an approved betting activity conducted by the licensee on a day the total amount payable as dividends or other returns to investors in respect of those bets.

The relevant percentage is—

in respect of an approved betting activity (other than a computer simulated racing event betting activity) conducted—

during the period commencing on 1 July 2015 and ending on 30 June 2016—9.2%, or

during the period commencing on 1 July 2016 and ending on 30 June 2018—7.43%, or

during the period commencing on 1 July 2018 and ending on 30 June 2019—6.6%, or

during the period commencing on 1 July 2019 and ending on 30 June 2020—5.8%, or

during the period commencing on 1 July 2020 and ending on 30 June 2022—4.38%, or

on or after 1 July 2022—8.47%, or

in respect of a computer simulated racing event betting activity—15%.

The tax is payable by the totalizator licensee.

The tax is payable within 7 days after the day in respect of which the tax is payable.

No betting tax is payable on net earnings in connection with the first $255 million of the total amount of computer simulated racing event bets placed with a totalizator licensee in any financial year.

Subsection (4A) ceases to have effect at the end of 30 June 2034.

In this section—

approved betting activity means a betting activity approved under section 13 of the Totalizator Act 1997 to be conducted by a totalizator licensee under that Act.

computer simulated racing event bet means a bet in respect of a computer simulated racing event betting activity.

computer simulated racing event betting activity means an approved betting activity conducted on a computer simulated horse racing, harness racing or greyhound racing event.

financial year means a year ending on 30 June.

(Repealed)

A totalizator licensee is entitled to an offset against the betting tax payable by the licensee under sections 8 and 10 of an amount equal to the sum of—

15% of the excluded commission for the day concerned, and

15% of the excluded net earnings for the day concerned.

If, in respect of any financial year, a totalizator licensee’s excluded commissions for the financial year exceed the sum of the amounts of excluded commission for each day of the financial year, the Chief Commissioner is to pay to the totalizator licensee an amount equal to 15% of the difference.

Note.

Section 111 of the Taxation Administration Act 1996 provides that if the Chief Commissioner is authorised or required to pay an amount under any taxation law, the amount is to be paid from the Consolidated Fund which is appropriated to the necessary extent.

If, in respect of any financial year, a totalizator licensee’s excluded net earnings for the financial year exceed the sum of the amounts of excluded net earnings for each day of the financial year, the Chief Commissioner is to pay to the totalizator licensee an amount equal to 15% of the difference.

Note.

Section 111 of the Taxation Administration Act 1996 provides that if the Chief Commissioner is authorised or required to pay an amount under any taxation law, the amount is to be paid from the Consolidated Fund which is appropriated to the necessary extent.

Nothing in this section requires a totalizator licensee to pay betting tax for any period before the offset under this section is applied to that liability.

Note.

Division 2 of Part 6 of the Taxation Administration Act 1996 enables the Chief Commissioner to approve special arrangements for the lodging of returns and payment of tax under taxation laws.

For the avoidance of doubt, the reference in section 70 (2) (a) of the Totalizator Act 1997 to a total amount of betting tax payable by TAB Limited under sections 8–10 of this Act in respect of a quarter does not include any offset under this section.

In this section—

approved betting activity has the same meaning as in section 10.

excluded commission, for a period, means the lesser of the following—

the total amount of commission deducted (under section 69 of the Totalizator Act 1997) from the amounts invested with the licensee in totalizators during the period concerned by investors who were not, at the time of the investment, located in NSW,

5.5% of the total commission deducted (under section 69 of the Totalizator Act 1997) from the total amount invested with the licensee in totalizators during the period concerned by all investors.

excluded net earnings, for a period, means the lesser of the following—

the total amount of net earnings from bets placed with the totalizator licensee by persons who were not, at the time the bet was placed, located in NSW in respect of approved betting activities conducted by the licensee during the period concerned,

4% of the total amount of net earnings from all bets placed with the totalizator licensee in respect of approved betting activities conducted by the licensee during the period concerned.