Victorian Bills Explanatory Memoranda Victorian Bills Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
Gambling Taxation Bill 2023
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill introduces new and strengthened casino tax arrangements from
1 July 2023, which will be administered by the Commissioner of State
Revenue (Commissioner) as a taxation law under the Taxation
Administration Act 1997.
Extending the application of the Taxation Administration Act 1997 to
cover casino taxes payable by the casino operator addresses a
recommendation of the Royal Commission into the Casino Operator and
Licence.
The Bill also consolidates provisions for and amends various gambling taxes,
by repealing the existing provisions for keno tax and wagering and betting
tax imposed under the Gambling Regulation Act 2003 and re-enacting them
in this Bill to provide a single legislative vehicle to address gambling taxes
administered by the Commissioner.
The Bill makes consequential amendments to the Casino Control Act 1991,
the Casino (Management Agreement) Act 1993, the Gambling Regulation
Act 2003 and the Taxation Administration Act 1997 to transfer the
responsibility for collecting and administering casino taxes from the
Victorian Gambling and Casino Control Commission (VGCCC) to the
Commissioner and to enable the relocation of the keno tax and wagering and
betting provisions from the Gambling Regulation Act 2003 to this Bill.
Clause Notes
Part 1--Preliminary
Clause 1 outlines the purposes of the Act.
Clause 2 provides that the Act comes into operation on 1 July 2023.
601029 1 BILL LA INTRODUCTION 2/5/2023
Clause 3 defines terms used in the Act, including--
additional casino tax which is defined to mean tax imposed by
clause 7(1)(c) and (d);
casino tax which is defined to mean tax imposed by clause
7(1)(a);
community benefit levy which is defined to mean the levy
imposed by clause 7(1)(b);
GST which is defined by reference to the GST Act defined
below;
GST Act which is defined to mean the A New Tax System
(Goods and Services Tax) Act 1999 of the Commonwealth;
Hospitals and Charities Fund which is defined by reference to
section 136 of the Health Services Act 1988;
keno tax which is defined to mean tax imposed by Part 3;
Mental Health Fund which is defined by reference to
section 10.3.4 of the Gambling Regulation Act 2003;
VGCCC which is defined to mean the Victorian Gambling and
Casino Control Commission established under Part 2 of the
Victorian Gambling and Casino Control Commission
Act 2011;
wagering and betting tax which is defined to mean tax imposed
by Part 4;
written notice which is defined to include a notice given in the
form of electronic data from which a written document can be
produced or reproduced.
Clause 4 provides that this Act is to be read together with the Taxation
Administration Act 1997.
Clause 5 provides that this Act binds the Crown.
Part 2--Casino taxation
Part 2 of the Bill provides for the imposition and collection of casino tax,
community benefit levy and additional casino tax payable by a casino
operator.
2
The casino operator within the meaning of the Casino Control Act 1991 is
currently obliged to pay casino tax on its gaming revenue, a community
benefit levy and additional casino tax to the State under the Management
Agreement between the casino operator and the State, which has the force of
a statutory enactment through the Casino (Management Agreement)
Act 1993. The Casino (Management Agreement) Act 1993 contains
specific obligations for the casino operator to pay casino tax and is read in
conjunction with the Casino Control Act 1991. Casino tax is currently
collected and administered by the VGCCC.
Part 2 of the Bill contains new casino taxing provisions that will apply from
the commencement of the Bill, replacing the existing obligations under the
Casino Control Act 1991 and Casino (Management Agreement) Act 1993,
with the necessary changes to transfer responsibility for administration from
the VGCCC to the Commissioner and establish a collection framework for
casino taxes that is consistent with other taxes administered by the
Commissioner. A casino operator will be required to register with the
Commissioner and lodge returns and pay casino tax and community benefit
levy in respect of each month.
Clause 8 of the Bill provides for the equalisation of gambling tax rates for
electronic gaming machine operators, as announced in the 2022-23 State
Budget. From 1 July 2023, electronic gaming machines operated by a casino
operator will be subject to the same tax structure as electronic gaming
machines operated by venue operators with club entitlements. The change
will improve the equity of electronic gaming machine taxation by ensuring
taxes paid by the largest gambling venue in the State are not lower than rates
at smaller, not-for-profit, community-based venues. Commission-based play
on casino electronic gaming machines will continue to be taxed at the
existing rate of 10%.
Division 1--Introduction
Clause 6 defines terms for the purposes of this Part, including--
casino and casino operator which are defined by reference to
section 3(1) of the Casino Control Act 1991;
commission based player which is defined as a person who
participates in a premium player arrangement with a casino
operator where the person and the casino operator satisfy the
requirements of any relevant controls and procedures approved
by the VGCCC under section 121 of the Casino Control
Act 1991 in respect of a premium player. This definition
corresponds to the definition of "Commission Based Player" in
3
clause 2 of the Management Agreement, as varied by
clause 3.1(a) of the second Deed of Variation to the Management
Agreement and by section 7C of the Casino
(Management Agreement) Act 1993, the latter of which
removed references to junkets and junket players;
commission based players gaming revenue attributable to
gaming machines which is defined to mean--
• the total amount received by a casino operator from bets
made on casino gaming machines by commission based
players, including any amounts in respect of the face
value of any free bets, less--
• the total amount of all prizes paid from that
amount, including net prizes paid in relation to
free bets (other than prizes paid into or out of a
jackpot special prize pool); and
• the total of all amounts received by the casino
operator from bets made on gaming machines by
commission based players that are paid into a
jackpot special prize pool and that are required to
be paid or payable as prizes.
This amount forms a part of total commission based players
gaming revenue as defined below. This definition is broadly
consistent with the definition of revenue under section 3.6.2 of
the Gambling Regulation Act 2003 as it relates to tax on venue
operators conducting gaming under gaming machine
entitlements. The deduction component is similar to the
calculation of net keno revenue under existing section 6A.4A.2 of
the Gambling Regulation Act 2003. References to free bets are
also included to ensure that the calculation of revenue in relation
to a free bet equals the face value of the bet less the net prizes of
the free bet;
commission based players gaming revenue attributable to table
games which is defined to mean--
• the total of all amounts, including cheques and other
negotiable instruments whether collected or not,
received in any period by a casino operator from the
conduct or playing of table games in the casino by
commission based players, including any amounts in
respect of the face value of any free bets;
4
• less the total amount of all winnings paid in that period
by the casino operator to commission based players in
respect of the conduct or playing of table games by
those players including net prizes paid in relation to free
bets.
This amount forms a part of total commission based players
gaming revenue as defined below. The definition corresponds to
the definition of "Commission Based Players' Gaming Revenue"
in clause 2 of the Management Agreement, as varied by
clause 3.1(a) of the second Deed of Variation to the Management
Agreement. However, this definition is limited to table games, as
a separate definition has been introduced in relation to gaming
revenue from commission based players attributable to gaming
machines. References to free bets are also included to ensure that
the calculation of revenue in relation to a free bet equals the face
value of the bet less the net prizes of the free bet;
free bet which is defined to mean a bet made wholly or partly
without the person making the bet paying any monetary amount
for the bet or part of the bet. For example--
• an amount provided by a casino operator to a player for
the player to make a bet with; or
• an amount representing a bonus on a previous winning
bet; or
• an amount representing a refund of all or part of the
staked amount for a previous non-winning bet; or
• an amount "purchased" or "paid for" by the player using
credits, points, loyalty rewards or other non-monetary
consideration.
gaming machine which is defined by reference to section 1.3(1)
of the Gambling Regulation Act 2003;
gaming revenue attributable to gaming machines which is
defined to mean--
• the total amount received by a casino operator from bets
made on casino gaming machines by all players other
than commission based players (non-commission based
players), including any amounts in respect of the face
value of any free bets, less--
5
• the total amount of all prizes paid from that
amount, including net prizes paid in relation to
free bets (other than prizes paid into or out of a
jackpot special prize pool); and
• the total of all amounts received by the casino
operator from bets made on gaming machines by
non-commission based players that are paid into
a jackpot special prize pool and that are required
to be paid or payable as prizes.
This amount forms a part of gross gaming revenue as defined
below. This definition is similar to the definition of commission
based players gaming revenue attributable to gaming machines
above except that it relates to the playing of gaming machines by
non-commission based players. References to free bets are
included to ensure that the calculation of revenue in relation to a
free bet equals the face value of the bet less the net prizes of the
free bet;
gaming revenue attributable to table games which is defined to
mean--
• the total of all amounts, including cheques and other
negotiable instruments whether collected or not,
received in any period by a casino operator from the
conduct or playing of table games in the casino by
non-commission based players, including any amounts
in respect of the face value of any free bets;
• less the total amount of all winnings paid in that period
by the casino operator in respect of the conduct or
playing of table games by non-commission based
players including net prizes paid in relation to free bets.
This amount forms a part of gross gaming revenue as defined
below. This definition is similar to the definition of commission
based players gaming revenue attributable to table games
above, except that it relates to the playing of table games by
non-commission based players. References to free bets are
included to ensure that the calculation of revenue in relation to a
free bet equals to the face value of the bet less the net prizes of
the free bet;
6
global GST amount which is defined by reference to the GST
Act, and is relevant to the calculation of the State tax credit as
defined below;
gross gaming revenue which is defined to mean the sum of
gaming revenue attributable to gaming machines and gaming
revenue attributable to table games. This amount forms a part of
total gaming revenue as described below and is also used in the
calculation of additional casino tax under clause 10;
jackpot special prize pool which is defined by reference to
section 3.1.2 of the Gambling Regulation Act 2003. A jackpot
special prize pool is a pool of funds connected to a linked jackpot
arrangement across multiple gaming machines, where funds are
paid into the pool from the total amount wagered on linked
machines by players, and prizes won under the arrangement are
paid out of the pool;
net prizes which is defined in relation to a free bet to mean the
winnings payable on the bet minus the face value of the bet. The
intended policy is to count the winnings of a free bet as the net
payout, namely the gross winnings payable to the player less the
face value of the free bet;
premium player arrangement which is defined by reference to
section 3(1) of the Casino Control Act 1991. This definition is
relevant to the definition of commission based player above;
State tax credit which is defined, for a casino operator in respect
of a month, to mean an amount equal to the amount determined
under Division 126 of the GST Act as the operator's global GST
amount for the month. The purpose of the State tax credit is to
offset the GST payable on gambling operations, and applies to
reduce the amount of total casino tax calculated under clause 8(1)
in respect of a month;
table game which is defined to mean games approved by the
VGCCC as "table games" under section 60 of the Casino
Control Act 1991 on or after 4 June 2009, and any
semi-automated, fully automated, electronic, animated or
substantially similar games. This definition corresponds to the
definition of "Table Game" in clause 2 of the Management
Agreement, as varied by clause 3.2(a) of the ninth Deed of
Variation to the Management Agreement;
7
total commission based players gaming revenue which is
defined to mean the sum of commission based players revenue
attributable to gaming machines and commission based players
revenue attributable to table games. This amount is relevant to
the calculation of casino tax under clause 8 and additional casino
tax under clause 11, and is a component of total gaming revenue
as defined below;
total gaming revenue which is defined to mean the sum of gross
gaming revenue and total commission based players revenue as
defined above. This amount is relevant to the calculation of
community benefit levy under clause 9.
Division 2--Imposition and calculation of tax
Clause 7 imposes the following taxes, which a casino operator is liable to
pay in respect of a casino--
• casino tax in accordance with clause 8;
• community benefit levy in accordance with clause 9;
• additional casino tax on gross gaming revenue under
clause 10;
• additional casino tax on commission based players
gaming revenue under clause 11.
Clause 8 provides the formula for the calculation of casino tax imposed
under clause 7(1)(a).
Subclause (1) specifies that the casino tax payable by a casino
operator for a month is equal to the total casino tax (TCT) for the
month, as calculated under subclause (2), less a casino operator's
State tax credit (STC) for the month. The term State tax credit is
defined in clause 6.
Subclause (1) is subject to subclause (6), which specifies how the
STC applies if a casino operator's total gaming revenue in a
month is less than zero or if a casino operator's TCT for a month
is less than its STC for that month.
Subclause (2) provides that a casino operator's TCT under
subclause (1) for a month is the sum of--
• an amount equal to 21*25% of the casino operator's
gaming revenue attributable to table games in the
month;
8
• the tax on the casino operator's gaming revenue
attributable to gaming machines in the month (TG),
calculated under subclause (3); and
• an amount equal to 9% of a casino operator's total
commission based players gaming revenue in the
month.
Subclauses (3) to (5) implement new gaming machine taxation
arrangements for a casino that will equalise the tax rates in
respect of gaming machines operated by the casino operator and
gaming machines operated by venue operators with club gaming
machine entitlements from 1 July 2023, as announced in the
2022-23 State Budget. These arrangements replace the casino
operator's previous obligations in respect of casino tax on gaming
machines under clause 22.1(b) of the Management Agreement, as
varied on and after the ninth Deed of Variation to the
Management Agreement. The 2022-23 State Budget initiative
does not affect the tax on commission based players gaming
revenue attributable to gaming machines, which is a component
of commission based players gaming revenue or TCBP that is
taxed at a rate of 9% under subclause (2).
Subclause (3) provides that TG under subclause (2) is the tax per
gaming machine installed in the casino (GMT) in the month,
calculated under subclause (4), multiplied by the average number
of gaming machines installed by the casino in the month (E).
Subclause (4) provides that GMT is the sum of the amounts of
average gaming revenue attributable to gaming machines
installed in the casino (A) calculated under subclause (5).
The tax per gaming machine is determined by multiplying those
parts of A specified in Column 1 of the Table at the foot of the
subclause by the corresponding rate in Column 2. The applicable
rates in this Table align with the rates applying in respect of
venue operators conducting gaming under club gaming machine
entitlements under section 3.6.6C of the Gambling Regulation
Act 2003.
Subclause (5) provides that A is calculated as the gaming revenue
attributable to gaming machines installed in the casino in the
month, divided by E as calculated under subclause (3). The term
gaming revenue attributable to gaming machines is defined in
clause 6.
9
Subclause (6) provides that if a casino operator's total gaming
revenue in a month is less than zero, the STC for that month is to
be applied to the TCT for the following month. If a casino
operator's TCT for a month is less than the operator's STC for
that month, the excess amount of the STC is to be applied to the
TCT for the following month.
Clause 9 addresses the community benefit levy imposed on a casino
operator.
Subclause (1) provides that the community benefit levy is 1% of
a casino operator's total gaming revenue in a month.
Subclauses (2) and (3) provide that an amount equal to the
amount of community benefit levy paid into the Consolidated
Fund must, in respect of each financial year, be paid out of the
Consolidated Fund (which is appropriated to the necessary
extent) into the Hospitals and Charities Fund, in the proportions
determined by the Treasurer.
Clause 10 addresses additional casino tax payable by a casino operator in
relation to gross gaming revenue.
Subclause (1) provides that additional casino tax is payable in
accordance with this clause if a casino operator's gross gaming
revenue in a financial year exceeds the base amount for that
financial year, as defined in subclause (3).
Subclause (2) provides that the additional casino tax under this
clause is calculated in accordance with the Table in Schedule 1.
Subclauses (3) and (4) provide that the base amount is
$1 200 000 000 for the financial year beginning on 1 July 2023.
For each subsequent financial year, the base amount will be
varied in accordance with the consumer price index, using an
indexation methodology similar to the methodology used in
section 9(2) of the Zero and Low Emission Vehicle
Distance-based Charge Act 2021.
As the base amount was subject to indexation under the terms of
the Management Agreement, the amount of $1 200 000 000 has
been rounded up from what the amount was forecast to be had
indexation continued to apply under the Management Agreement
for the financial year beginning on 1 July 2023.
Clause 11 addresses additional casino tax payable by a casino operator in
relation to commission based players gaming revenue.
10
Subclause (1) provides that additional casino tax is payable in
accordance with this clause if a casino operator's total
commission based players gaming revenue in a financial year is
less than $100 000 000.
Subclause (2) provides that the amount of the additional casino
tax is $10 000 000 less one-tenth of the casino operator's total
commission based players gaming revenue in the financial year.
The term total commission based players gaming revenue is
defined in clause 6.
Clause 12 provides that if a casino operator's total commission based
players gaming revenue is less than zero in any month, the
negative amount may be carried forward to reduce total
commission based players gaming revenue in the following
month.
Division 3--Registration and returns
Clause 13 requires a casino operator that becomes liable for tax under this
Part to apply to the Commissioner for registration under this
Division, in the form approved by the Commissioner, within
14 days after the end of the first month in which the casino
operator becomes liable. Failure to apply for registration will be
an offence with a maximum penalty of 500 penalty units for a
body corporate and 100 penalty units in any other case. The note
at the foot of subclause (1) states that section 130B of the
Taxation Administration Act 1997, as amended by clause 78 of
this Bill, applies to an offence against this provision.
Section 130B provides for accessorial liability of officers of
bodies corporate.
Clause 14 requires a casino operator to lodge returns and pay to the
Commissioner the taxes imposed by Part 2.
Subclause (1) provides that a casino operator must, within
30 days after the end of each month, lodge a return with the
Commissioner in respect of the month and pay to the
Commissioner any casino tax and community benefit levy
payable for the month. When lodging its monthly return, the
casino operator must provide the Commissioner a copy of its
GST return as lodged under Division 31 of the GST Act. Within
30 days after the end of each financial year, the casino operator
must also pay the Commissioner any additional casino tax
payable for the financial year.
11
Subclause (2) provides that a casino operator must lodge a return
for a month even if no casino tax or community benefit levy is
payable for that month.
Subclause (3) provides a return is to be in the form, and contain
the information, determined by the Commissioner.
Part 3--Taxation of keno
Part 3 of the Bill provides for the imposition of keno tax.
The Windfall Gains Tax and State Taxation and Other Acts Further
Amendment Act 2021 amended the Gambling Regulation Act 2003 by
inserting Part 4A of Chapter 6A to extend a point of consumption framework
to keno tax from 15 April 2022.
Part 3 of this Bill re-enacts the provisions of Part 4A of Chapter 6A of the
Gambling Regulation Act 2003, which will be repealed by Division 3 of
Part 6 of this Bill. There are no substantive changes to the re-enacted
provisions, other than to remove certain obsolete or redundant provisions.
Division 1--Introduction
Clause 15 defines terms for the purposes of this Part including--
free keno game which is defined to mean a keno game played
wholly or partly without the customer providing or paying any
money for the game or any part of the game.
keno entity which is defined to mean a keno licensee or a person
authorised or permitted to conduct a keno game, in Victoria or
elsewhere under the law of another State or Territory. The
definition also allows for a person, or person of a class,
prescribed by the regulations under clause 28 to be a keno entity;
keno game and keno licensee which are defined by reference to
section 1.3(1) of the Gambling Regulation Act 2003;
multi-jurisdictional agreement which is defined by reference to
clause 24(1);
net keno revenue which is defined by reference to clause 16;
net prizes which is defined in relation to a free keno game to
mean the winnings payable on the game minus the face value of
the game. The intended policy is to count the winnings of a free
keno game as the net payout, namely the gross winnings payable
less the face value of the game;
12
participating jurisdiction which is defined to mean Victoria and
another State or a Territory that enters into a multi-jurisdictional
agreement;
registered keno entity which is defined to mean a keno entity
registered under clause 20.
Clause 16 sets out the calculation of the net keno revenue (NKR) of a keno
entity in respect of a month. NKR is defined broadly to capture
any revenue earned by a keno entity from keno games played by
a person located in Victoria at the time of play, less the winnings
paid or payable in respect of those games.
Subclause (1) provides that NKR is equal to the variable TA
minus TP.
TA is the sum of the total amount received by the entity in the
month for keno games played by persons located in Victoria at
the time of play, including any amounts in respect of the face
value of free keno games played by those persons, and the total
of any other amounts of a kind prescribed by the regulations to be
TA.
TP is the sum of--
• the total amount of all prizes paid or payable in the
month directly to persons located in Victoria at the time
of playing a keno game, including net prizes paid in
relation to free keno games, other than prizes paid into
or out of a prize pool; and
• the total of all amounts received by the entity in the
month for keno games played by persons located in
Victoria at the time of play that were paid into a prize
pool, and thus required to be paid or payable as prizes to
players of keno games; and
• the total of any other amounts of a kind prescribed by
the regulations to be TP.
Additional amounts may be prescribed by the regulations to be
TA or TP under clause 28.
Subclause (2) provides that in determining the NKR, any
amounts in respect of GST payable by the entity in respect of
supplies to which the revenue relates are to be included. This
13
provision ensures that the GST component must be included in
NKR in the calculation of keno tax.
Clause 17 provides for the conversion of payments to play keno games
made in foreign currency to Australian currency for the purposes
of this Part.
Division 2--Imposition and rate of tax
Division 2 of Part 3 provides for the imposition and rate of keno tax.
Clause 18 requires a keno entity to pay keno tax, which is imposed on the
entity's NKR in respect of a month at the rate of 24*24%.
Clause 19 provides that a negative net keno revenue amount of a keno entity
in respect of a month can be rolled over to reduce the net keno
revenue of the keno entity in respect of the next or a subsequent
month. The table below provides an example.
Monthly tax
Month NKR Adjusted NKR liability
July $500 000 $500 000 24*24% of
$500 000
August $200 000 $200 000 24*24% of
$200 000
September -$400 000 -$400 000 $0
October $300 000 $300 000 - $0
$400 000 =
-$100 000
November $300 000 $300 000 - 24*24% of
$100 000 = $200 000
$200 000
December $150 000 $150 000 24*24% of
$150 000
Division 3--Registration and returns
Division 3 of Part 3 provides for registration of keno entities and returns.
Clause 20 requires a keno entity to apply to the Commissioner for
registration, in a form approved by the Commissioner, before the
end of the first month in which the entity becomes liable to pay
14
keno tax. Under subclause (3) the Commissioner must register a
person who applies for registration.
A keno entity that fails to apply for registration when required to
do so will commit an offence unless the keno entity has a
reasonable excuse for not applying for registration. The
maximum penalty for this offence is 500 penalty units for a body
corporate or 100 penalty units in any other case. The note at the
foot of subclause (1) states that section 130B of the Taxation
Administration Act 1997, as amended by clause 78 of this Bill,
applies to this offence.
Clause 21 provides that the Commissioner may cancel a registered keno
entity's registration by written notice for any reason the
Commissioner thinks sufficient. A cancellation of registration
has effect from the date specified for the purpose by the
Commissioner in the notice of cancellation.
Clause 22 provides that where a registered keno entity ceases to incur any
liability to pay keno tax and does not expect to incur any such
liability in the future, the keno entity must, within 14 days after
so ceasing, give notice of that fact to the Commissioner, lodge a
return for the final month of which they are liable to pay the keno
tax and pay any keno tax to which the return relates. The
registration of the keno entity is cancelled on the day on which
the notice is received by the Commissioner.
Clause 23 provides that every keno entity that is registered or required to
apply for registration must within 30 days after the end of each
month lodge a return with the Commissioner in respect of the
month and pay to the Commissioner any keno tax payable. A
return is to be in the form, and contain the information,
determined by the Commissioner. A return must be lodged even
if no keno tax is payable for that month.
Division 4--General
Clause 24 allows the Treasurer to enter into a multi-jurisdictional agreement
with other States or Territories to improve the assessment and
collection of taxes, interest and penalties imposed by
participating jurisdictions on keno operations that are carried on
in multiple jurisdictions. Clause 24 also sets out what may be
included in a multi-jurisdictional agreement and the requirements
of a multi-jurisdictional agreement.
15
Clause 25 provides that the Commissioner may publish guidelines for
determining the location of a person who plays a keno game
conducted by a keno entity. Any such guidelines published by
the Commissioner are not legislative instruments for the purposes
of the Subordinate Legislation Act 1994.
Clause 26 ensures that this Part applies to a keno entity located outside
Victoria.
Clause 27 provides that an amount equal to the amount of keno tax paid into
the Consolidated Fund by the Commissioner must, in respect of
each financial year, be paid out of the Consolidated Fund
(which is appropriated to the necessary extent) into the Hospitals
and Charities Fund and the Mental Health Fund, in the
proportions determined by the Treasurer.
Clause 28 provides that the regulations may prescribe methods for
determining the location of persons playing keno games
conducted by a keno entity, persons or classes of persons that are
keno entities, and amounts for the variables TA or TP in the
calculation of NKR.
Part 4--Taxation of wagering and betting
Part 4 of the Bill provides for the imposition of wagering and betting tax.
Wagering and betting tax was introduced from 1 January 2019 to replace
previous tax arrangements for wagering and betting in the Gambling
Regulation Act 2003 with a tax based on a point of consumption framework
under Part 6A of Chapter 4 of the Gambling Regulation Act 2003.
Part 4 of this Bill re-enacts the provisions of Part 6A of Chapter 4 of the
Gambling Regulation Act 2003, which will be repealed by Division 3 of
Part 6 of this Bill. There are no substantive changes to the re-enacted
provisions, other than to remove certain obsolete or redundant provisions.
Clauses 31 and 44 of the Bill provide for an increase in the rate of wagering
and betting tax from 10% to 15% on and after 1 July 2024.
Clause 29 defines terms for the purposes of this Part.
Subclause (1) contains definitions including--
ANWR which is defined in clause 44(1) as the aggregate amount
of net wagering revenue of the members of a group.
"Net wagering revenue" and "group" are as defined below;
16
approved betting competition which is defined by reference to
section 1.3(1) of the Gambling Regulation Act 2003;
approved simulated racing event which is defined by reference
to section 4.1.2 of the Gambling Regulation Act 2003;
bet which is defined to mean a wager or bet on a wagering event,
an approved betting competition or an approved simulated racing
event, or a wager or bet made through a betting exchange,
capturing all authorised forms of gambling under Chapter 4 of
the Gambling Regulation Act 2003, or any similar wagering or
betting which is permitted under a law of another State or
Territory. The definition also allows for any wager or bet of a
kind prescribed by regulations to be included under the
definition;
betting exchange which is defined by reference to section 1.3(1)
of the Gambling Regulation Act 2003;
business which is defined to mean the business of a wagering and
betting entity, whether carried out by one person or 2 or more
persons;
corporation which is defined by reference to section 9 of the
Corporations Act 2001 of the Commonwealth;
designated group entity which is defined to mean the member of
a group of entities (grouped for the purposes of this Part) that is
designated to be the representative entity of the group--as per
clause 47;
free bet which is defined to mean a bet made wholly or partly
without the customer providing or paying any money for the bet
or any part of the bet;
Gaming Minister which is defined to mean the Minister
administering Part 1 of Chapter 4 of the Gambling Regulation
Act 2003;
group which is defined to mean all entities forming a group, as
constituted under Division 4 of this Part. A group may consist of
related corporations and/or commonly controlled businesses;
multi-jurisdictional agreement which is defined in clause 53 to
mean an agreement entered into between the Treasurer and one
or more States or Territories or both to facilitate tax collection
and compliance activities for wagering and betting tax;
17
net wagering revenue which is defined to broadly capture any
revenue earned by a wagering and betting entity from accepting
or facilitating bets made by a person located in Victoria at the
time of placing the bet or using the service, less winnings paid or
payable in respect of those bets or use of service. Specifically--
• in respect of an entity not operating a totalisator, betting
exchange or acting as an agent--
• the total amount of all bets, including the face
value of all free bets, made by a person located
in Victoria at the time of making the bet, plus the
total amount of any other amounts of a kind
prescribed by the regulations associated with
making the bets;
• less the total amount of all winnings paid or
payable in respect of those bets, including net
winnings paid in relation to free bets, and any
other amounts of a kind prescribed by the
regulations;
• in respect of an entity operating a totalisator or acting as
an agent--
• the total amount of all commissions received by
the entity for accepting bets made, or providing a
service through which bets are made, by a person
located in Victoria at the time of making the
bet or using the service, plus, in the case of a
totalisator, the total amount retained by the entity
due to the rounding down of fractions in the
calculation of winnings paid out in respect of the
bets, plus the total of any other amounts of a kind
prescribed by the regulations;
• less the total of any amounts of a kind prescribed
by the regulations;
• in respect of an entity operating a betting exchange--
• the total amount of all commissions received
by the entity related to bets made through the
exchange by a person located in Victoria at the
time the bets were made, plus any other amounts
18
of a kind prescribed by the regulations associated
with making the bets;
• less the total of any other amounts of a kind
prescribed by the regulations;
net winnings which is defined in relation to a free bet to mean
the winnings payable on the bet minus the face value of the bet.
Where a customer places a free bet and wins, the wagering and
betting entity pays the gross dividends to the customer's account
and then recoups the cost of funding the free bet (i.e. its face
value) from the gross dividends. The intended policy is to count
the winnings of a free bet as the net payout, namely the gross
winnings payable less the face value of the free bet.
For example, a wagering and betting entity provides a free bet
with a face value of $25 to a customer. The customer places a
bet that wins for a return of $85. The entity pays $85 to the
customer's account and then deducts the cost of the free bet
(i.e. $25) from the account, resulting in a net payout of $60 to the
customer. The net winnings of the free bet are $60 ($85 - $25).
The net wagering revenue of the free bet is -$35 ($25 - $60);
participating jurisdiction which is defined to mean Victoria and
other States or Territories that enter into a multi-jurisdictional
agreement to facilitate tax collection and compliance with the
tax;
Racing Minister which is defined to mean the Minister
administering the Racing Act 1958;
registered bookmaker which is defined by reference to
section 1.3(1) of the Gambling Regulation Act 2003;
registered designated group entity which is defined to mean a
designated group entity that is registered with the Commissioner
under clause 48;
registered wagering and betting entity which is defined to mean
a wagering and betting entity that is registered with the
Commissioner under clause 36;
tax-free threshold which is defined to mean $1 000 000 in
respect of a financial year;
totalisator which is defined by reference to section 1.3(1) of the
Gambling Regulation Act 2003;
19
Victorian racing industry payment which is defined to mean the
proportion of wagering and betting tax to be paid to a specified
entity that represents or is connected with the Victorian racing
industry. The specified entity and proportion of tax is to be
determined by the Treasurer, by notice published in the
Government Gazette under clause 33(1);
wagering and betting entity which is defined to mean a
registered bookmaker, a Victorian wagering and betting licensee,
any other person who is registered or licensed in Victoria or
another State or Territory to accept bets or provide a service
through which bets are made, or a person as prescribed by
regulations;
wagering and betting licensee which is defined by reference to
section 1.3(1) of the Gambling Regulation Act 2003;
wagering event which is defined by reference to section 1.3(1) of
the Gambling Regulation Act 2003.
Subclause (2) provides that, in determining the net wagering
revenue of a wagering and betting entity, including a member of
a group, any amounts in respect of GST payable by the entity in
respect of supplies to which the revenue relates are to be
included. This provision ensures that the GST component must
be included in the net wagering revenue in the calculation of the
wagering and betting tax.
Clause 30 provides that if a bet is made in a currency other than Australian
currency, the amount of the bet is to be converted to Australian
currency at the exchange rate published by the Reserve Bank of
Australia on the day on which the bet is made, or if the rate is not
published on that day, on the last day on which the rate was
published before that day.
Division 2--Imposition, rate and hypothecation of tax
Clause 31 imposes tax on the net wagering revenue of a wagering and
betting entity at a rate of 10% of the amount of the entity's net
wagering revenue in excess of the tax-free threshold on and after
1 July 2023 and before 1 July 2024, and at the rate of 15% of the
amount of net wagering revenue in excess of the tax-free
threshold on and after 1 July 2024. The wagering and betting
entity is liable for the tax on the entity's net wagering revenue.
20
Clause 32 provides that if a wagering and betting entity (leaving entity)
ceases to be a member of a group during a financial year, its
tax-free threshold for the remainder of the financial year is
reduced by an amount equal to the leaving entity's net wagering
revenue for that financial year during the period it was a member
of the group. If the leaving entity's net wagering revenue is equal
to or in excess of the tax-free threshold, the leaving entity's
tax-free threshold for the remainder of the financial year is zero.
This clause ensures that an entity leaving a group does not obtain
the benefit of the tax-free threshold more than once.
If the leaving entity joins or forms another group during the
financial year, clause 46 applies.
Clause 33 provides for a monthly payment to the Victorian racing industry
out of the Consolidated Fund. The Treasurer, in consultation
with the Gaming Minister and the Racing Minister, by notice
published in the Government Gazette, must determine from time
to time a proportion of the wagering and betting tax paid or
payable to be the Victorian racing industry payment. The
proportion is specified to be of wagering and betting tax "paid or
payable" to ensure the payment is determined and paid on an
accrual basis in respect of each month. The amount determined
is to be paid to an entity specified in the notice that, in the
Treasurer's opinion, represents or is connected with the Victorian
racing industry.
The Victorian racing industry payment is paid out of the
Consolidated Fund (which is appropriated to the necessary
extent) each month to the specified entity. The payment is not
to be used, either directly or indirectly, to support a wagering
and betting entity.
The notice determining the Victorian racing industry payment is
not a legislative instrument for the purposes of the Subordinate
Legislation Act 1994.
Clause 34 provides for an annual payment to be made to the ANZAC Day
Proceeds Fund established under the ANZAC Day Act 1958.
The Treasurer must, before the end of each financial year, pay
out of the Consolidated Fund (which is appropriated to the
necessary extent) into the ANZAC Day Proceeds Fund an
amount equal to one-thirtieth of the amount of wagering and
betting tax paid or payable in respect of the month of April in that
financial year.
21
Clause 35 provides for the following amounts to be paid out of the
Consolidated Fund (which is appropriated to the necessary
extent) into the Hospitals and Charities Fund--
• for each month other than April, an amount equal to the
amount of wagering and betting tax paid or payable in
respect of that month, less the Victorian racing industry
payment for that month; and
• for the month of April, an amount equal to the amount
of wagering and betting tax paid or payable in respect of
that April, less the Victorian racing industry payment
for that April and the payment into the ANZAC Day
Proceeds Fund under clause 34 for that financial year.
Division 3--Registration and returns
Clause 36 requires a wagering and betting entity to apply to the
Commissioner for registration, in a form approved by the
Commissioner, before the end of the first month in which the
entity becomes liable to pay wagering and betting tax. Under
subclause (3) the Commissioner must register a person who
applies for registration.
A wagering and betting entity that fails to apply for registration
when required to do so will commit an offence unless the
wagering and betting entity has a reasonable excuse for not
applying for registration. The maximum penalty for this offence
is 500 penalty units for a body corporate or 100 penalty units in
any other case. The note at the foot of subclause (1) states that
section 130B of the Taxation Administration Act 1997, as
amended by clause 78 of this Bill, applies to this offence.
Clause 37 provides that the Commissioner may cancel a registered
wagering and betting entity's registration by written notice for
any reason the Commissioner thinks sufficient.
Clause 38 provides that where a registered wagering and betting entity
ceases to incur any liability to pay wagering and betting tax and
does not expect to incur any such liability in the future, the
wagering and betting entity must within 14 days after so ceasing,
give notice of that fact to the Commissioner and lodge a return
for the final month of which they are liable to pay the wagering
and betting tax and pay any wagering and betting tax to which
the return relates. The registration of the wagering and betting
22
entity is cancelled on the day on which the notice is received by
the Commissioner.
Clause 39 provides that, subject to Division 4 of this Part, every wagering
and betting entity that is registered or required to apply for
registration must within 30 days after the end of each month
lodge a return in respect of the month and pay to the
Commissioner any wagering and betting tax payable. A return
must be lodged even if no wagering or betting tax is payable for
the month. The return is to be in the form, and contain the
information, that is determined by the Commissioner.
Division 4--Grouping provisions
This Division defines when a group is formed and sets out how tax is
imposed for entities in a group.
Clause 40 provides that a group is constituted by all the entities forming that
group that is not part of any larger group.
Clause 41 provides that corporations will constitute a group if they are
related bodies corporate within the meaning of the Corporations
Act.
Clause 42 provides that, where a person or set of persons has a controlling
interest in each of 2 businesses, the persons who carry on those
businesses will constitute a group.
Subclause (2) sets out the rules for determining whether a person
has, or a set of persons have, a controlling interest in a business.
This may vary depending upon the nature of the entity carrying
on the business (e.g. a corporation, a partnership or under a trust).
A person has, or a set of persons have, a controlling interest in a
business if--
• in the case of one person, the person is the sole owner of
the business;
• in the case of a set of persons, the persons are together
as trustees the sole owners of the business;
• in the case of a business carried on by a corporation--
• the person or each of the set of persons is a
director of the corporation and the person or set
of persons is entitled to exercise more than 50%
of the voting power at the director's meetings; or
23
• a director or set of directors of the corporation
that is entitled to exercise more than 50% of the
voting power at directors' meetings is under an
obligation to act in accordance with the direction,
instructions or wishes of that person or set of
persons;
• in the case of a business carried on by a corporation
that has a share capital, the person or set of persons can
exercise or control the exercise of more than 50% of the
voting power attached to the voting shares, or any class
of voting shares;
• in the case of a business carried on by a partnership, the
person owns, or set of persons own, more than 50% of
the capital or are entitled to more than 50% of the
profits of the partnership;
• in the case of a business carried on under a trust, the
person is, or set of persons are, the beneficiary in
respect of more than 50% of the value of the interests
in the trust.
Subclauses (3) to (8) outline further provisions which define
when a person has, or a set of persons have, a controlling interest
in a business via an indirect interest.
Clause 43 provides that where a person is a member of 2 or more groups,
the members of all the groups together constitute a group. This
means that the members of those groups are amalgamated into
one larger group. Furthermore, if 2 or more members of a group
have together a controlling interest in a business, all the members
of the group and the person carrying on the business together
constitute a group. This means that the person carrying on the
business is subsumed into the group.
Clause 44 specifies how the tax liability for the group is to be calculated.
Subclause (1) provides the formula for calculating the tax
payable on the net wagering revenue of a group. The variable TR
in the formula is the relevant rate of tax, which is 10% on and
after 1 July 2023 and before 1 July 2024, and 15% on and after
1 July 2024.
24
Subclause (2) provides that members of the group are jointly and
severally liable to pay the group's tax liability, whether they are a
wagering and betting entity or not.
Clause 45 provides supplementary rules for the determination of the tax
liability for a group if a wagering and betting entity that is not a
member of a group (the joining entity) becomes a member of a
group during a financial year, whether by joining an existing
group or forming a new group with another joining entity.
The clause only applies to an individual wagering and betting
entity that was previously not a member of a group during a
financial year. If the entity is already a member of a group and
joins another group during the financial year, clause 46 applies.
Where a wagering and betting entity joins or forms a group
during a financial year, if the entity had--
• not paid tax on its net wagering revenue, the ANWR
will include the net wagering revenue of that entity in
respect of the non-group period for that financial year;
or
• paid tax on its net wagering revenue, the ANWR will
not include the net wagering revenue of that entity in
respect of the non-group period for that financial year.
However, the tax-free threshold for the group will be
zero in respect of the remainder of the financial year,
including the month in which the joining entity became
a member of the group.
Clause 46 applies if a wagering and betting entity (the transferring entity)
ceases to be a member of a group (group A) and becomes a
member of another group (group B) during a financial year,
whether group B is an existing group or a new group formed by
the transferring entity and another wagering and betting entity.
Subclause (2) ensures that, for the purposes of calculating the
wagering and betting tax payable by group B as per the formula
set out in clause 44, where a member transfers from group A to
group B during a financial year, the tax-free threshold for
group B will be reduced to zero if wagering and betting tax was
payable by group A during that financial year, or remains
unchanged if tax was not payable by group A during that
financial year.
25
A further special rule applies where all of the members of
group B were members of group A before joining or forming
group B (i.e. a smaller group breaks from a bigger group during a
financial year). Any net wagering revenue of each of the
transferring entities during that financial year while they were
members of group A is to be included in the ANWR of group B
in the month in which the transferring entities became members
of group B, unless wagering and betting tax was payable by
group A on that net wagering revenue under clause 44.
Clause 47 provides that the members of a group may, with the approval of
the Commissioner, designate a qualified member of the group to
be the designated group entity for the purposes of this Part.
A qualified member of the group is a member whose net
wagering revenue in the previous year exceeded the tax-free
threshold or whose likely net wagering revenue in the current
financial year is likely to exceed the tax-free threshold.
If none of the members of a group is a qualified member, but the
aggregate of the members' net wagering revenue in the previous
financial year exceeded the tax-free threshold or the aggregate of
the members' likely net wagering revenue in the current financial
year is likely to exceed the tax-free threshold, the members
may, with the approval of the Commissioner, designate any
member to be the designated group entity for the group.
The Commissioner will designate a member as a designated
group entity if the members of the group do not designate a
member as a designated group entity within 30 days after the end
of the month in which the group is established.
The designated group entity of a group stops being the designated
group entity if there is a change in the membership of the group
or when the members revoke the designation.
Clause 48 requires a designated group entity of a group to apply to the
Commissioner for registration, in a form approved by the
Commissioner, before the end of the first month in which the
members of the group become liable to pay tax under clause 44.
Under subclause (3) the Commissioner must register a designated
group entity that applies for registration.
A designated group entity that fails to apply for registration when
required to do so will commit an offence unless the designated
group entity has a reasonable excuse for not applying for
26
registration. The maximum penalty for this offence is
500 penalty units for a body corporate or 100 penalty units in any
other case. The note at the foot of subclause (1) states that
section 130B of the Taxation Administration Act 1997, as
amended by clause 78 of this Bill, applies to this offence.
Clause 49 provides that the Commissioner may cancel a designated group
entity's registration by written notice for any reason the
Commissioner thinks sufficient.
Clause 50 provides that, where members of a group cease to incur any
liability to pay wagering and betting tax and do not expect to
incur any such liability in the future, the registered designated
group entity must within 14 days after so ceasing give notice of
that fact to the Commissioner and lodge a return for the final
month in respect of which they are liable to pay the wagering and
betting tax and pay any wagering and betting tax to which the
return relates. The registration of the registered designated group
entity is cancelled on the day on which the notice is received by
the Commissioner.
Clause 51 provides that every designated group entity that is registered or
required to apply for registration must, within 30 days after the
end of each month, lodge a group return in respect of the month
and pay to the Commissioner any wagering and betting tax
payable under clause 44 on the group's net wagering revenue in
respect of that month. A group return must be lodged even if no
wagering or betting tax is payable for the month.
Clause 52 provides that each member of a group who is jointly and
severally liable to pay the group's tax liability is also jointly and
severally liable to pay any amounts payable to the Commissioner
under this or any other Act, including any interest and penalty tax
and any the costs incurred relating to recovery of the tax. A
member who makes payments for which it is jointly and
severally liable under this Division has rights of contribution or
indemnity from other members of the group.
Division 5--General
Clause 53 allows the Treasurer to enter into agreements with other States or
Territories or both to improve the assessment and collection of
taxes, interest and penalties imposed by participating
27
jurisdictions on wagering and betting operations that are carried
on in multiple jurisdictions.
Clause 54 provides that the Commissioner may from time to time publish
guidelines, not inconsistent with this Act or the regulations, for
determining the location of a person who makes a bet with, or
through a service provided by, wagering and betting entities.
Guidelines published by the Commissioner are not legislative
instruments within the meaning of the Subordinate Legislation
Act 1994.
Clause 55 ensures that this Part applies to a wagering and betting entity,
including a designated group entity, that is located outside of
Victoria.
Clause 56 sets out the regulation-making powers under this Part. These
powers include prescribing the kinds of wagering and betting that
are bets, amounts associated with the making of bets that are to
be included in net wagering revenue, amounts associated with
the making of bets that are not to be included in net wagering
revenue, methods for determining the location of persons making
bets with, or through a service provided by, a wagering and
betting entity, and persons or classes of persons that are wagering
and betting entities.
Part 5--General and transitional
Division 1--General
Clause 57 provides that the Governor in Council may make regulations for
or with respect to any matter or thing that is required or permitted
to be prescribed or necessary to be prescribed to give effect to
this Act.
Division 2--Transitional provisions
Clause 58 provides that the transitional provisions in Schedule 2 of the Bill
have effect.
28
Part 6--Consequential amendments
Division 1--Casino Control Act 1991
Division 1 of Part 6 of the Bill amends the Casino Control Act 1991 to
make consequential amendments as a result of the casino taxation provisions
in Part 2 of this Bill.
Clause 59 amends the definition of grounds for disciplinary action in
section 20(1) of the Casino Control Act 1991.
Currently, paragraph (b) of the definition specifies that a
contravention of the Casino Control Act 1991 by the casino
operator, a person in charge of the casino, an agent of the casino
operator or a casino employee is a ground for the VGCCC to take
disciplinary action under section 20. The term disciplinary
action is defined in subsection (1) as including the cancellation
or suspension of a casino licence, the issuing of a letter of
censure, the variation of the terms of a casino licence or the
imposition of a fine not exceeding $100 000 000.
Clause 59 inserts new paragraph (bab), stating that it is a ground
for disciplinary action in relation to the casino licence that the
casino operator has contravened a provision of the Gambling
Taxation Act 2023 or regulations made under that Act, or a
provision of the Taxation Administration Act 1997 or
regulations made under that Act as it relates to the Gambling
Taxation Act 2023 or regulations made under the Gambling
Taxation Act 2023.
This provision is required as this Part repeals the taxing
provisions from the Casino Control Act 1991. Therefore, the
inclusion of new paragraph (bab) ensures that contraventions of
taxing provisions by the casino operator continue to constitute
grounds for disciplinary action, which enables the VGCCC to
take the appropriate disciplinary actions in relation to the casino
licence in the event of such contraventions.
Clause 60 repeals section 81J, 113 and 114 of the Casino Control
Act 1991. These provisions provide for the calculation and
payment casino tax and community benefit levy by the casino
operator to the VGCCC, and are being replaced by Part 2 of the
Bill.
29
Clause 61 removes references to casino tax and casino community benefit
levy from section 116 of the Casino Control Act 1991, which
provides for the interest payable on overdue amounts under that
Act. Part 5 of the Taxation Administration Act 1997 will
provide for the imposition and calculation of interest on unpaid
casino tax and community benefit levy under Part 2 of the Bill.
Clause 62 removes the reference to casino tax from section 119 of the
Casino Control Act 1991.
Existing section 119 specifies that the casino supervision and
control charge and casino tax are not payable in respect of a
period during which a casino licence is suspended and a manager
appointed to conduct the operations of the casino under
section 22 of the Casino Control Act 1991.
However, existing section 22(8) provides that the former casino
operator is entitled to a fair rate of return out of net earnings
(if any) on any property of the former casino operator retained by
the manager, and may receive the balance of net earnings if
directed by the VGCCC. It appears anomalous that casino tax is
not payable during a period of suspension, even though the
casino operator is receiving some rate of return from casino
operations. Therefore, this clause removes the reference to
casino tax not being payable from the Casino Control Act 1991
and will not apply to casino taxes imposed under Part 2 of this
Bill.
Clause 63 removes a reference to tax from section 120 of the Casino
Control Act 1991, which imposes offences relating to the wilful
evasion or making of false or misleading returns, statements or
reports in relation to fees, premium payments, charges, taxes or
levies under the Casino Control Act 1991. The Taxation
Administration Act 1997 provides for various offences that
would apply to such actions in relation to the administration of
taxes under Part 2 of the Bill.
Division 2--Casino (Management Agreement) Act 1993
Division 2 of Part 6 of the Bill amends the Casino (Management
Agreement) Act 1993 to make consequential amendments as a result of the
casino taxation provisions in Part 2 of this Bill.
30
Clause 64 inserts new section 7CA into the Casino (Management
Agreement) Act 1993, which varies and amends the
Management Agreement (in both its commercial and statutory
characters) to remove the relevant casino taxing provisions that
are to be enacted in the new Act.
Subclause (1) provides that clauses 22.1(b) and (d), 22.2, 22.3,
22.4, 22.5, 22.6, 22.7 and 22A of the Management Agreement are
repealed on 1 July 2023, being the date of commencement of this
clause.
Subclause (2) provides that the State has no liability for losses
incurred following the enactment of this clause, or the repeal of
the above provisions of the Management Agreement.
Subclause (3) broadly defines the State for the purposes of
section 7B to include the Minister, the VGCCC, a Victorian
public official, agent, representative, advisor or contractor.
Clause 65 amends section 11 of the Casino (Management Agreement)
Act 1993.
Subclause (1)(a) and (b) removes references to section 113
and 114 of the Casino Control Act 1991, which are being
repealed by clause 60 of this Bill. Subclause (1)(c) removes a
reference to clause 22A of the Management Agreement, which is
being repealed by clause 64.
Subclause (2) inserts new section 11(6) of the Casino
(Management Agreement) Act 1993 to confirm that for the
avoidance of doubt, the Gambling Taxation Act 2023 applies to
the Melbourne Casino Operator within the meaning of the
Casino (Management Agreement) Act 1993.
Clause 66 inserts new Part 6 into the Casino (Management Agreement)
Act 1993, consisting of clause 23, to provide transitional
arrangements for the amendments made by this Division.
New clause 23(1) confirms that the Casino
(Management Agreement) Act 1993 and the Management
Agreement, as in force immediately before 1 July 2023, continue
to apply on and after 1 July 2023 in relation to the Gross Gaming
Revenue and Commission Based Players' Gaming Revenue of the
Melbourne Casino Operator in respect of any period before that
day.
31
New clause 23(2) confirms that clauses 22.1(b) and (d), 22.2,
22.3, 22.4, 22.5, 22.6 and 22.7 of the Agreement continue to
apply on and after 1 July 2023 to require the Melbourne Casino
Operator to pay casino tax, a community benefit levy and
additional casino tax on Gross Gaming Revenue in respect of any
period before that day, and that clause 22A continues to apply to
require the Melbourne Casino Operator to pay casino tax, a
community benefit levy and additional casino tax on Commission
Based Players' Gaming Revenue in respect of any period before
that day.
This clause is intended to ensure that the Melbourne Casino
Operator is liable to pay tax under the Management Agreement in
respect of any periods before 1 July 2023. Clause 1 of
Schedule 1 to this Bill specifies the transitional arrangements in
relation to casino tax, community benefit levy and additional
casino tax payable in respect of periods on and after 1 July 2023.
Division 3--Gambling Regulation Act 2003
Division 3 of Part 6 of the Bill amends the Gambling Regulation Act 2003
to make consequential amendments as a result of the re-enactment of keno
tax and wagering and betting tax provisions in Parts 3 and 4 of this Bill
respectively.
Clause 67 inserts new paragraph (da) into section 4.3A.26(d) of the
Gambling Regulation Act 2003 to provide it is a ground for
disciplinary action in relation to a wagering and betting licensee
that the licensee has contravened a provision of the Gambling
Taxation Act 2023 or regulations made under that Act, or a
provision of the Taxation Administration Act 1997, or
regulations made under that Act, as it relates to the Gambling
Taxation Act 2023 or regulations made under the Gambling
Taxation Act 2023.
This amendment is for a similar purpose to clause 59 of this Bill,
in that it ensures any contraventions of the wagering and betting
tax provisions by a wagering and betting licensee (which are
being repealed from the Gambling Regulation Act 2003 and
re-enacted in this Bill) continue to constitute grounds for
disciplinary action, for which the VGCCC can take the
appropriate disciplinary actions under the Gambling Regulation
Act 2003.
32
Clause 68 repeals Part 6A of Chapter 4 of the Gambling Regulation
Act 2003, which contains the provisions imposing wagering and
betting tax that will be re-enacted in Part 4 of this Bill.
Clause 69 inserts new paragraph (da) into section 6A.3.26(d) of the
Gambling Regulation Act 2003 to provide it is a ground for
disciplinary action in relation to a keno licensee that the licensee
has contravened a provision of the Gambling Taxation Act 2023
or regulations made under that Act, or a provision of the
Taxation Administration Act 1997, or regulations made under
that Act, as it relates to the Gambling Taxation Act 2023 or
regulations made under the Gambling Taxation Act 2023.
This amendment is for a similar purpose to clauses 59 and 67 of
this Bill, in that it ensures any contraventions of the keno tax
provisions by the keno licensee (which are being repealed from
the Gambling Regulation Act 2003 and re-enacted in this Bill)
continue to constitute grounds for disciplinary action, for which
the VGCCC can take the appropriate disciplinary actions under
the Gambling Regulation Act 2003.
Clause 70 amends section 6A.4.2(2) of the Gambling Regulation Act 2003
to replace a reference to the keno tax provisions in Part 4A of
Chapter 6A of that Act with a reference to Part 3 of the
Gambling Taxation Act 2023.
Clause 71 amends section 6A.4.4 of the Gambling Regulation Act 2003 to
remove a reference to the Mental Health Fund from the heading
to the section and to repeal subsections (1) and (4). The payment
of keno tax revenue out of the Consolidated Fund into the
Hospitals and Charities Fund and Mental Health Fund will be
dealt with under clause 27 of this Bill.
Section 6A.4.4(2) and (3) are not being repealed as they make
provision in relation to the premium payment paid under
section 6A.3.13 out of the Consolidated Fund into the Hospitals
and Charities Fund.
Clause 72 repeals Part 4A of Chapter 6A of the Gambling Regulation
Act 2003, which contains the provisions imposing keno tax that
will be re-enacted in Part 3 of this Bill.
Clause 73 substitutes section 10.1.32(ca) of the Gambling Regulation
Act 2003. Section 10.1.32 provides for permitted disclosures of
protected information by a regulated person.
33
New paragraph (ca) replaces references to Part 6A of Chapter 4
and Part 4A of Chapter 6A of the Gambling Regulation
Act 2003 with a reference to the Gambling Taxation Act 2023
and the Taxation Administration Act 1997 as it applies to that
Act.
Clause 74 inserts new Part 40 into Schedule 7 to the Gambling Regulation
Act 2003 to provide transitional arrangements for the
amendments made by this Division.
New clause 40.1 provides that Part 6A of Chapter 4 of the
Gambling Regulation Act 2003 continues to apply on and after
1 July 2023 in relation to the net wagering revenue of a wagering
and betting entity or a group in respect of any period before that
day. A wagering and betting entity or designated group entity is
required to lodge a return or group return (respectively) and pay
wagering and betting tax under the former provisions in respect
of any period before 1 July 2023.
Clause 40.2 provides that Part 4A of Chapter 6A of the
Gambling Regulation Act 2003 continues to apply on and after
1 July 2023 in relation to the net keno revenue of a keno entity in
respect of any period before that day. A keno entity is required
to lodge a return and pay keno tax under the former provisions in
respect of any period before 1 July 2023.
Division 4--Taxation Administration Act 1997
Division 4 of Part 6 of the Bill amends the Taxation Administration
Act 1997 to make consequential amendments as a result of the provisions in
Parts 2 to 4 of this Bill.
Clause 75 amends section 4(1) of the Taxation Administration Act 1997
to include the Gambling Taxation Act 2023 and any regulations
made under that Act as a taxation law for the purposes of the
Taxation Administration Act 1997. This clause has the effect
of including all taxes under this Bill as taxes for the purposes of
the Taxation Administration Act 1997, including the casino
taxes imposed by Part 2 and the keno tax and wagering and
betting tax provisions relocated from Part 4A of Chapter 6A and
Part 6A of Chapter 4 of the Gambling Regulation Act 2003
respectively. This clause also removes references to the repealed
taxing provisions in the Gambling Regulation Act 2003.
34
Clause 76 amends section 20 of the Taxation Administration Act 1997 to
provide that a refund of an amount under Part 2, 3 or 4 of the
Gambling Taxation Act 2023 cannot be used by the
Commissioner to offset a tax liability under another taxation law;
nor can a refund arising under another taxation law be used to
offset a tax liability under Parts 2, 3 or 4. However, a refund of
an amount paid under Part 2, 3 or 4 may be offset against a
liability arising under the same Part. For example, a refund
arising under Part 3 in respect of a keno entity for one month can
be used to offset that entity's liability under Part 3 in respect of a
different month.
Clause 77 amends section 92(1)(e)(xv) of the Taxation Administration
Act 1997 to allow disclosure by a tax officer of information
obtained under or in relation to the administration of a taxation
law to the VGCCC for the purpose of administering the Casino
Control Act 1991, Casino (Management Agreement)
Act 1993, or any regulations made under any of those Acts, in
addition to the existing reference to the Gambling Regulation
Act 2003 and any regulations made under that Act.
This amendment allows a tax officer to disclose information
obtained under or in relation to the administration of casino tax to
the VGCCC, as appropriate, for the purposes of regulating the
casino's licence or operations.
Clause 78 amends section 130B of the Taxation Administration Act 1997,
which provides for criminal liability of officers of bodies
corporate where an officer fails to exercise due diligence to
prevent the commission of an offence by the body corporate, by
specifying that the following sections of the Gambling Taxation
Act 2023 will be captured by subsection (1)--
• section 13(1) (Registration of casino operators);
• section 20(1) (Registration of keno entities);
• section 36(1) (Registration of wagering and betting
entities);
• section 48(1) (Registration of designated group entity).
Clause 79 inserts new section 135(12) of the Taxation Administration
Act 1997 to specify that it is the intent of sections 5, 12(4), 18(1),
96(2) and 100(4), as they apply on and after the commencement
of the Gambling Taxation Act 2023, to alter or vary section 85
35
of the Constitution Act 1975. Section 85 sets out the powers
and the jurisdiction of the Supreme Court of Victoria.
Division 5--Repeal of this Part
Clause 80 provides for the automatic repeal of Part 6 of the Bill on
1 July 2024. The repeal of this Part does not affect the
continuing operation of the amendments made by it
(see section 15(1) of the Interpretation of Legislation
Act 1984).
Schedule 1--Amount of additional casino tax on gross gaming
revenue
The Table in Schedule 1 contains the details for calculating the amount of
additional casino tax in relation to gross gaming revenue in accordance with
clause 10. The amount of additional casino tax depends on the amount by
which gross gaming revenue in a financial year exceeds the base amount
(defined in clause 10(3)) for that year.
Schedule 2--Transitional provisions
Schedule 2 provides transitional arrangements for the Bill.
Clause 1 provides transitional arrangements in relation to casino taxation
by clarifying that a casino operator is liable to pay tax under the
Gambling Taxation Act 2023 in respect of any periods on and
after 1 July 2023.
Subclause (1) confirms that this Act applies on and after 1 July
2023 in relation to casino tax, community benefit levy and
additional casino tax on a casino operator's gaming revenue
attributable to gaming machines, gaming revenue attributable to
table games, total gaming revenue or gross gaming revenue
(as the case requires).
The note at the foot of the subclause states that section 23 of the
Casino (Management Agreement) Act 1993 (inserted by
clause 66 of this Bill) addresses transitional arrangements for the
above taxes in respect of periods before 1 July 2023.
Subclause (2) provides transitional arrangements for calculating
the casino tax liability of the Melbourne Casino Operator for the
month of July 2023.
Subclause (3) sets out definitions for the purposes of this clause.
36
Clause 2 provides transitional arrangements in relation to keno tax.
Subclause (1) confirms that the Gambling Taxation Act 2023
applies on and after 1 July 2023 in relation to keno tax on the net
keno revenue of a keno entity.
The note at the foot of the subclause states that clause 40.2 of
Schedule 7 to the Gambling Regulation Act 2003 (inserted by
clause 74 of this Bill) addresses transitional arrangements for
keno tax in respect of periods before 1 July 2023.
Subclause (2) allows a negative amount of net keno revenue in
respect of a month before 1 July 2023 to be rolled over to reduce
a keno entity's liability in the next or a subsequent month, under
clause 19 of this Bill, provided that the negative amount has not
already been applied to reduce net keno revenue in respect of a
month under section 6A.4A.6 of the Gambling Regulation
Act 2003 (which is repealed by clause 72 of this Bill).
Subclause (3) provides that a keno entity that was registered with
the Commissioner under section 6A.4A.7 of the Gambling
Regulation Act 2003 immediately before 1 July 2023 is taken to
on and after 1 July 2023 to be a registered keno entity under
clause 20 of this Bill.
Clause 3 provides transitional arrangements in relation to wagering and
betting tax.
Subclause (1) confirms that this Act applies on and after 1 July
2023 in relation to wagering and betting tax on the net wagering
revenue of a wagering and betting entity.
The note at the foot of the subclause states that clause 40.2 of
Schedule 7 to the Gambling Regulation Act 2003 (inserted by
clause 74 of this Bill) addresses transitional arrangements for
wagering and betting tax in respect of periods before 1 July 2023.
Subclause (2) provides that a notice of determination of the
Victorian racing industry payment under section 4.6A.5(1) of the
Gambling Regulation Act 2003 in effect immediately before
1 July 2023 continues in effect on and after that day as if it were
a notice under clause 33(1) of this Bill.
Subclause (3) provides that a wagering and betting entity that
was registered with the Commissioner under section 4.6A.7 of
the Gambling Regulation Act 2003 immediately before 1 July
37
2023 is taken to on and after 1 July 2023 to be a registered
wagering and betting entity under clause 36 of this Bill.
Subclause (4) provides that a designation of a designated group
entity under section 4.6A.17(1) or (3) of the Gambling
Regulation Act 2003 in effect immediately before 1 July 2023
continues in effect on and after that day as if it were a designation
under clause 47(1) or (3) of this Bill, as the case requires.
Subclause (5) provides a designated group entity that was
registered with the Commissioner under section 4.6A.18 of the
Gambling Regulation Act 2003 immediately before 1 July 2023
is taken on and after that day to be registered under clause 48 of
this Bill.
38