Politicians are proposing that gambling revenue should be included in the goods and services tax distribution. This would mean that gambling operators in all states would contribute to taxes that are distributed across the country, helping to support smaller states like Western Australia (WA).
WA shadow Treasurer Ben Wyatt and Labor MP Alannah MacTiernan have called on the government to make this change. They have argued that gambling should be taxed just like any other goods or service, and that these tax profits should be distributed in the same way.
Since the state does not permit poker machines, WA sees fewer tax profits from gambling. Victoria and New South Wales are states which operator hundreds of poker machines, and see plenty of GST profits. This year Victoria will earn $312 per capita and New South Wales will earn $261 per capita from gambling taxes. WA will receive just $87 per capita.
According to a report in Perth Now, this change could help to bring in an additional $413 million to WA. This money would be spent on education and community funding that would help to benefit the state overall.
“The second casino coming on stream in NSW will be a new river of gold for the NSW government,” shesaid. “Last year NSW received $1.9 billion in gambling revenues. NSW and Victoria have got to do more to help WA with the heavy lifting on supporting the smaller states.”
The proposal has seen plenty of support from across WA; however, officials from other states have yet to voice their opinions on the topic. As this story develops, we will keep you updated.