Betting Tax and Other Legislation Amendment Bill 2022
Plain English Summary
Overview
This bill increases the tax on betting operators from 15 to 20 per cent and directs 80 per cent of the revenue to Racing Queensland, creating a more sustainable funding model for the racing industry. It also guarantees at least $20 million per year for country thoroughbred race meetings and makes administrative changes to support the rollout of the mental health levy on large employers from 1 January 2023.
Who it affects
Betting operators face higher taxes, the racing industry gains guaranteed funding, and country thoroughbred racing clubs receive a protected minimum of $20 million annually. Large employers with payrolls over $10 million have new administrative obligations for the mental health levy.
Racing industry funding
The bill replaces the previous UBET product fee arrangement with a new model where betting operators pay a 5 per cent racing levy on top of the existing 15 per cent betting tax. Free bets are now included in the taxable revenue calculation. Eighty per cent of total betting tax revenue is hypothecated to Racing Queensland each financial year.
- Betting tax effectively rises from 15 per cent to 20 per cent with the new 5 per cent racing levy
- Free bets must now be included when calculating a betting operator's taxable wagering revenue
- 80 per cent of annual betting tax revenue must be paid to Racing Queensland in quarterly instalments
- Country thoroughbred race meetings guaranteed a minimum of $20 million per year, indexed at 2 per cent annually
Mental health levy administration
The bill makes administrative and transitional amendments to the Payroll Tax Act to ensure the mental health levy can be properly administered from 1 January 2023. It addresses periodic threshold calculations, information sharing within employer groups, and penalties for non-compliance.
- Commissioner of State Revenue given power to determine periodic thresholds for the mental health levy
- New notification requirements for group employers to share wage and levy information within specified timeframes
- Penalties of up to 100 penalty units for failing to provide required information without reasonable excuse
- Transitional provisions halve the annual thresholds ($10 million to $5 million, $100 million to $50 million) for the part-year 2022-23 period
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee12 Oct 2022View Hansard
Referred to Education, Employment and Training Committee
The Education, Employment and Training Committee examined the bill over three weeks under an urgent referral, receiving nine written submissions, holding a public departmental briefing, and conducting a public hearing on 24 October 2022. The committee unanimously recommended the bill be passed, finding that it would provide a more sustainable funding model for Queensland's racing industry. The committee also recommended two amendments: one to ensure free bets made as totaliser bets are taxed consistently, and another seeking clarity on the definition of 'country thoroughbred race meetings'. The Queensland Government supported all three recommendations.
Key findings (5)
- The proposed changes to the betting tax were expected to generate approximately $80 million in additional revenue each year, with $50 million from the new racing levy and $30 million from incorporating free bets into the tax calculation.
- A majority of stakeholders, including Racing Queensland, Tabcorp, and several racing clubs, supported the bill as providing more certain and stable long-term funding for the racing industry.
- Some betting operators raised concerns that Queensland's effective betting tax rate of 20 per cent would be the joint highest in Australia and could lead to deprioritisation of Queensland events on wagering platforms.
- The committee identified that free bets made as totaliser bets were inadvertently excluded from the betting tax calculation, creating an inconsistency that needed to be corrected by amendment.
- The committee found that the administrative changes to the payroll tax framework for the mental health levy were reasonable and proportionate, and that limitations on human rights were justified.
Recommendations (3)
- The committee recommends the Betting Tax and Other Legislation Amendment Bill 2022 be passed.
- The committee recommends the bill be amended to omit sections 25(3) and 26(2)(a) from the Betting Tax Act 2018 to ensure that free bets made as totaliser bets are incorporated into the calculation of the betting tax.
- The committee recommends the Treasurer and Minister for Trade and Investment clarify how 'country thoroughbred race meetings' will be defined for the purposes of the Racing Act 2002 and the Racing Regulation 2013, and who will be responsible for defining this term.
Committee report tabled
▸Second Reading9 Nov 2022View Hansard
▸29 members spoke20 support3 oppose6 mixed
Raised concerns about the lack of consultation on the betting tax bill and the lack of clarity on the definition of 'country thoroughbred race meetings'. Also spoke about the Appropriation Bill, criticising the $2.8 billion overspend.
“Neither the Bill, the Racing Act, nor the Racing Regulation provides a definition of 'country thoroughbred race meetings'.”— 2022-11-10View Hansard
As Treasurer, moved the second reading of all three bills, explaining the unforeseen expenditure was driven by COVID measures, flood recovery and accelerated capital works, and that the betting tax changes would deliver a sustainable funding model for Queensland racing.
“The wealth of our economy and the wealth of our people are inextricably linked to the health of our people.”— 2022-11-09View Hansard
As Minister for Racing, strongly supported the bill as delivering a more sustainable funding model for the racing industry. Highlighted the economic contribution of racing growing 60 per cent under the government, the new $20 million minimum for country racing, and the level playing field for betting operators.
“The results are clear: the economic contribution of the racing industry to Queensland has soared almost 60 per cent under our government, to a record nearly $2 billion in 2020-21.”— 2022-11-10View Hansard
Acknowledged the betting tax would deliver more funding for racing, which the LNP supports, but heavily criticised the lack of consultation, the broken promise on no new taxes, the rushed payroll tax provisions with 14 clauses being amended five months after passage, and the Treasurer's handling of the shelved land tax.
“We have seen that this bill contains a five per cent increase in betting tax, from 15 per cent to 20 per cent, at the point of consumption. That is on the record. It will result in more funding for Queensland racing, which we on this side of the House obviously support.”— 2022-11-09View Hansard
Strongly supported the betting tax reforms, arguing they ensure all betting operators contribute fairly to the racing industry and praised the hypothecation of 80 per cent of revenue to Racing Queensland.
“It is important that, whatever app is being used at the betting table on a Saturday with my mates, Queensland Racing benefits.”— 2022-11-10View Hansard
As Economics and Governance Committee chair, defended the unforeseen expenditure as routine and appropriate given COVID and flood impacts, noting Queensland's $2.8 billion compared to New South Wales' $17.8 billion in the same period.
“Since 2008 there have been four years that have had larger unforeseen expenditure as a percentage of the overall budget.”— 2022-11-09View Hansard
As Economics and Governance Committee member, defended the unforeseen expenditure as driven by COVID support and flood recovery, highlighting the mental health levy and the betting tax mechanism requiring large multinationals to contribute to country racing.
“We make no apologies for supporting the Queensland economy and Queenslanders through the pandemic and in times of natural disaster.”— 2022-11-09View Hansard
As Leader of the Opposition, focused on the Treasurer's use of 'at this time' in shelving the land tax as signalling it will return, criticised the $2.8 billion overspend, and called on the Treasurer to rule out the land tax forever.
“Make no mistake: they are the words of a Treasurer who has been humiliated, embarrassed, humbled and put in his box and does not have the ticker to admit he is wrong.”— 2022-11-09View Hansard
Supported the betting tax reforms as providing a sustainable funding model for the racing industry, noting it taxes large multinationals rather than punters. Also defended the appropriation bills as routine and necessary.
“This is not a tax on punters; this is a tax on large multinationals, the largest of which are principally foreign owned or foreign residing.”— 2022-11-10View Hansard
Supported all three bills, highlighting local projects in Hervey Bay funded by appropriations and the strong economic recovery driving record employment in the Wide Bay region.
“The Palaszczuk government has steered the path required to get us to this point and has taken thoughtfully considered decisions through these appropriations to safely navigate the stormy waters created by a worldwide pandemic.”— 2022-11-09View Hansard
As a racing enthusiast, criticised the lack of consultation with betting agencies on the tax increase and noted Ladbrokes' withdrawal of Queensland racing sponsorship, but acknowledged the appropriation bill would be supported since the money was already spent.
“I would like the Treasurer to tell me in his windup speech what was the diminution in gambling numbers as a result of the new tax he whacked on these people without consultation in terms of the dollar downturn they will pay as a result.”— 2022-11-09View Hansard
As committee member, supported the betting tax reform as creating a sustainable funding model for racing, highlighting the mental health levy and the need for multinational betting companies to contribute to the Queensland racing industry.
“These large multinational companies are bleeding Queensland racing dry and it is about time the companies that are profiting from our thriving racing industry also invest in its future.”— 2022-11-09View Hansard
Strongly supported the betting tax changes as ensuring multinational bookmakers pay their fair share, highlighted the $20 million minimum for country thoroughbred racing, and credited the Country Racing Support Package with revitalising racing outside the south-east corner.
“This bill gives certainty to racing. It provides racing with a sustainable funding model that will allow it to operate and grow without having to come cap in hand to government seeking money on an ad hoc basis.”— 2022-11-09View Hansard
Commended the betting tax reforms as delivering important economic reform providing long-term funding certainty for the racing industry and Racing Queensland.
“The provisions contained in this bill will help guarantee a secure future for this great industry.”— 2022-11-10View Hansard
Spoke passionately about the importance of the betting tax changes for country racing, describing how race meetings are the major social and economic events for regional towns and highlighting upgrades to Callaghan Park in Rockhampton.
“If you have not been out to a country race meeting, I encourage you to do so. It is so important for our local economy to hold those meetings.”— 2022-11-09View Hansard
As committee member, acknowledged the betting tax supports Queensland racing and assists pubs and clubs, but raised concerns about Anacta's lobbying role and focused most of his speech on criticising the $200 million Wellcamp quarantine facility waste.
“By and large, I do not have too many problems with that aspect of this cognate debate. It does support Queensland racing.”— 2022-11-09View Hansard
Supported the betting tax reform as delivering a better funding model for racing, criticised multinational offshore betting companies for not investing in Queensland communities, and highlighted the mental health levy and local electorate investments.
“Quite simply, they benefit greatly from the racing industry, making huge profits, so they should contribute to the future of that industry.”— 2022-11-09View Hansard
Supported the bill as providing a sustainable funding model for Queensland racing, particularly for country tracks like the Herbert River Jockey Club, arguing that offshore betting companies should pay their fair share.
“Country racing is at the heart of most regional communities and it is something that I am very passionate about so I took a fair bit of interest in the legislation before the House.”— 2022-11-09View Hansard
Raised concerns about the record overspend and the Queensland Revenue Office sending land tax assessments to exempt homeowners, but acknowledged the betting tax would support racing while expressing concern about the mental health levy burden on businesses.
“This government is clearly desperate to raise revenue and is sending land tax bills to people who do not have to pay land tax but may be conned into doing so.”— 2022-11-09View Hansard
Defended the appropriations as necessary responses to COVID and floods, highlighted the $4.3 billion surplus, and supported the betting tax reform for racing industry certainty and the mental health levy.
“For all the opposition's misleading comments about financial mismanagement, once again, the facts speak for themselves.”— 2022-11-09View Hansard
Defended the unforeseen expenditure as driven by COVID and floods, highlighted record-low unemployment and population growth, and supported the betting tax as a levy on multinational companies rather than families.
“At the last election we made a promise to the people of Queensland that there would be no new or increased taxes on Queensland families, and we have kept that promise.”— 2022-11-09View Hansard
As Economics and Governance Committee member, criticised the record overspend while service delivery standards declined, and described the betting tax as the fourth broken tax promise by a government that has checked out.
“Cost blowouts, broken promises and a lack of transparency and accountability will become the hallmarks of this government.”— 2022-11-09View Hansard
Praised the government for taking on multinational betting companies and supporting the racing industry, which is intrinsic to regional communities. Noted country racing is more a community event than commercial enterprise.
“We in the KAP have sat here defending the public over Uber, which pays no tax in Australia and smashed our taxi industry. The tide has turned. Perhaps the tide has not turned but it is time to show the government some appreciation and say well done.”— 2022-11-09View Hansard
As shadow racing minister, supported additional funding for racing but criticised the complete lack of consultation with betting companies, noting Tabcorp's lobbyist had 43 engagements while Responsible Wagering had zero, and objected to demonising international firms that employ Queenslanders.
“One of those betting firms employs 550 Queenslanders, but apparently they are evil because they are international. How many international firms do we have operating in this state that employ locals? They should not be demonised; they should be encouraged.”— 2022-11-09View Hansard
Supported the bill as providing a sustainable funding model for racing, detailing the Ipswich Turf Club, Marburg Pacing Association, and the new Greater Brisbane Greyhound Centre at Purga.
“These large multinational companies are bleeding Queensland racing dry and it is about time the companies that are profiting from our thriving racing industry also invest in its future.”— 2022-11-09View Hansard
As Minister for Agriculture, defended unforeseen expenditure as necessary for biosecurity, drought assistance and disaster recovery, challenging the opposition's characterisation of the spending as waste.
“When you have an emerging issue you do not wait for the next budget; you deal with the problem when it arises.”— 2022-11-09View Hansard
Opposed the bill as a handout to the racing industry and Tabcorp, arguing the five per cent levy is inadequate, that Tabcorp received a $30 million tax break, and the $80 million going to Racing Queensland would be better spent on community sports, arts or public services.
“Racing is run by elites for elites. Labor wants to give its powerful friends $80 million a year for this rich man's hobby.”— 2022-11-09View Hansard
Supported the bills highlighting Mackay's economic transformation under Labor, investments in green energy, health infrastructure, roads, and the Pioneer pumped hydro scheme.
“My electorate has gone from strength to strength under the Labor Palaszczuk government.”— 2022-11-09View Hansard
As committee member, supported the racing industry receiving additional funding, acknowledging it as critically important for regional areas and the lifeblood of regional tourism.
“It is very important to ensure that the racing industry in Queensland flourishes. It is critically important for regional areas. It is the lifeblood for regional areas as it brings tourists to those towns.”— 2022-11-09View Hansard
▸In Detail10 Nov 2022View Hansard
Amendment to omit section 25(3) to ensure betting operators are not entitled to an additional deduction for totalisator bets which are not available for other types of bets.
Amendment to section 26(2) to ensure equitable treatment of totalisator bets and other types of bets in relation to free bets.
Insertion of transitional provision for working out taxable wagering revenue for the 2022-23 financial year, ensuring the new free bet provisions apply only from commencement.
Repeal of the interstate land tax provisions from the Revenue Legislation Amendment Act 2022, giving effect to the government's decision not to proceed with the interstate land tax measure.
During consideration in detail, spoke on the amendment repealing the interstate land tax provisions, describing it as the Treasurer's humiliation. Criticised the governance processes that allowed the renters tax through cabinet twice.
“This is the moment of the Treasurer's humiliation.”— 2022-11-10View Hansard
During consideration in detail, attacked the Treasurer over the repeal of the interstate land tax, arguing it proved the Treasurer would never have caucus support to become Premier.
“This amendment is why Treasurer Dick will never have the support of the Labor caucus to take over the Premier's job.”— 2022-11-10View Hansard
During consideration in detail, shared the story of a constituent who would have been hit by the interstate land tax despite living in Queensland, disputing the Treasurer's claim it would not affect Queenslanders.
“Let us dispense with the idea that it was not a tax on Queenslanders. This was going to affect Queenslanders, both property owners and renters.”— 2022-11-10View Hansard
Assent date: 21 November 2022