Australia’s Northern Territory Amends Bookmakers Tax11th December 2009 11:56 am GMT
In a boost to the state's corporate bookmakers, Australia's Northern Territory parliament yesterday amended legislation abolishing the current turnover tax on bookmakers, introducing instead a new 10% gross margin tax capped at AUD$250,000 per year, set to commence on January 1st 2010.
The legislation was introduced to parliament in October in order to maintain the state's competitiveness with other jurisdictions across the country. (more)
Under the amendments, the new tax rates will result in the removal of all current Northern Territory (NT) betting taxes, including the 0.33% currently charged on domestic and international racing as well as the 0.25% currently charged on international sport.
The move was welcomed by Centrebet, who has been licensed in the territory for seventeen years, with the company stating that the total of these taxes incurred in its 2009 financial year amounted to $1.3 million.
In its place, the NT government has introduced a new 10% gross margin tax which will be payable on all racing and sports betting for both international and domestic events conducted under the NT wagering licence, capped at $250,000 per year.
Centrebet said that the net impact of the changes to the NT tax regime will be an annualised saving to the company of $1.0 million pre-tax and $0.7 million on an after-tax basis.
"The reduced tax rates are a welcome move which make it economic for us to maintain our presence in the Territory and will assist the Northern Territory Government in protecting jobs in the state," said Centrebet CEO Con Kafataris.
"Centrebet has been licensed in the NT for 17 years and has built a strong and productive working relationship with the NT Government which we look forward to maintaining," he said.
Shares in Centrebet International Limited (Co. Profile) (ASX:CIL) closed earlier today at $1.15 per share in Sydney.