Assistant Federal Treasurer, Senator Rod Kemp, has rejected media claims that the Government is giving GST concessions for high roller gamblers in Australian casinos.
"This is not a concession for high rollers, the GST will simply be calculated on the difference between bets received and payouts made," Senator Kemp said.
GST applies to the value added or margin of a business, for example, a hotel might offer a room for $100 per night, but offer a $30 rebate to a regular customer. The margin in this case is reduced and it is appropriate that the GST apply to the reduced margin.
This is the same situation for a Casino. The Government’s policy in relation to gambling was set out in A New Tax System in August 1998 as follows:
"The GST will apply to the operator’s margin…, not to the prizes paid out. That is, the tax will apply to the difference between total ‘ticket sales’ or ‘bets taken’ and the value of prizes or winnings paid out…"
Senator Kemp said "The amendments introduced by the Government are not a concession, but merely give effect to the original policy, so that it is the Casino operator’s true margin that is subject to tax."
CANBERRA
29 April 1999
Contact Officer: Matthew Guy (02) 6277 7360