This year, tax takings in Victoria are set to increase significantly. Thanks to an upcoming increase in pokie taxes and other tarrifs, the government expects to bring in $20 billion from Victorian tax payers. According to The Australian, tax revenue will reach $20bn by 2018. Over the course of the next year, tax revenue will increase by 3.5%, and it will grow by a further 3.7% annually after that.
These tax dollars will be put to good use, funding a wide range of public programs across the country, such as education, healthcare and culture. Recently, the Victorian government has announced a new legislation that will require poker machine operators to pay an additional $278 million per year on their games.
Initially, the bill was in danger of not passing, as Independent MP Geoff Shaw accused the increase of being a ‘tax grab’ and voiced his concerns about its potential negative impact on the gaming industry. The state worked with Mr Shaw to make amendments to the bill, and the tax hike will now go ahead as planned. By 2018, the new pokie taxes will bring in an additional $2 billion for the state.
The state cannot count on additional revenue from a tax increase for Crown Melbourne. The tax was proposed last year, but James Packer’s negotiations have put the increase on hold until the next budget is released. Another cause of the tax revenue increase is the cost of motorist registration. From July, it will increase from $25 to $270 annually.
The stamp duty will also deliver significant tax revenue. In 2014-15, it will bring in $1.9 billion and increase to $2.4billion in 2017-18. Land tax revenue will increase by 16.9% this year. Fine revenue will also see a huge increase, thanks to new traffic camera technology and new 40kmh zones. This will result in takings rising from $692 million this year to $839million in 2017-18.
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