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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 is $300,000. For the 2018-19 financial year, the threshold was $225,000 because the first financial year was not a full year.

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 2018 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, it 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 2018.

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.

Contact

Office of State Revenue

  • Call 1300 300 734 (Australia) or
    +61 7 3179 2500 (overseas)
  • Send an email using our online enquiry form.