Glossary of betting tax terms

Get to know the terms below to help your understanding of betting tax.

Annual threshold amount - The annual threshold amount for the 2018–19 financial year is $225,000 because the first financial year is not a full year. An annual threshold amount of $300,000 will apply for future financial years.

Bet - includes a wager, a free bet and a lay-off bet.

Generally, casino games, gaming machines (poker machines), Keno, lottery tickets, bingo, two-up or art unions are not considered bets for the purposes of the Betting Tax Act 2018.

Read section 6 of the Betting Tax Act for more information.

Betting operations - include:

  • receiving, paying, negotiating or settling bets.
  • operating a betting exchange.

The legislation imposes no conditions for the way a bet is made by a customer for it to be taxable. Consequently, whether a bet is made by the customer in person, through an agent, over the phone, online or otherwise, is irrelevant for the purposes of the tax.

Betting operator - a person who is authorised under a licence to conduct betting operations from a place within Australia.

Change of status - A betting operator has a change of status if, during a financial year any of the following happens:

  • they cease to be authorised under a licence or other authority to be a betting operator
  • they cease to be exempt from the authorisation requirements to be a betting operator
  • they cease to conduct betting operations and don’t intend to resume conducting betting operations for the remainder of the financial year or in the next
  • an administrator is appointed for the betting operator other than on 1 July in the financial year
  • the appointment of an administrator for the betting operator ceases to have effect.

Final period - starts on 1 July in a financial year and ends on the day:

  • a betting operator ceases to conduct or ceases to be authorised to conduct betting operations
  • before an administrator is appointed
  • the appointment of an administrator ceases.

Free bet - a bet provided to a punter by a betting operator that includes an amount that is wholly or partly a free component and is not immediately redeemable by the punter for cash.

Examples of free components include an amount:

  • provided for making a bet
  • representing a bonus on a previous winning bet
  • representing a refund of all or part of the staked amount for a previous non-winning bet

Lay-off bet - a bet made by a betting operator (the first betting operator) with another betting operator to reduce, wholly or partly, the liability of the first betting operator for bets made with them.

Queensland bet - a bet made by a person located in Queensland when the bet is placed. This includes totalisator bets, betting exchange bets and general bets.

Relevant betting operator - a betting operator who is registered or is required to be registered as a betting operator under the Betting Tax Act.

Tax rate - Betting tax is applied at the rate of 15% to a betting operator’s taxable wagering revenue that exceeds the annual threshold amount.

Taxable wagering revenue (TWR) - a betting operator’s total wagering revenue less their total eligible payments for the relevant return period.