Australian Senate report be damned! The Senate's recent report suggesting a moratorium be placed on further Internet gambling licenses hasn't prevented some Aussie states from attracting potential licensees. One way to attract licensees, of course, is by making the taxes less taxing, and the state of Tasmania is doing just that.
The Tasmanian government, which enacted the original legislation in December 1999, announced a new lower tax rate than the current scale of 25 percent to 30 percent on domestic wagers. The new tiered tax rate breaks down to 20 percent of gross profit up to $10 million, 17.5 percent of gross profit between $10 million and $20 million, and 15 percent of gross profit equal to or greater than $20 million.
Additionally, four percent of gross profit will be charged on wagers made outside of the country. The domestic rates apply from July 1, 2000.
In the meantime, other states are reportedly looking at their own taxation rates, and considering additional changes to attract more licensees.