Liquor & Gaming NSW resources

Wagering regulation: ​​Calculating Point of Consumption Tax​ in NSW

Guidance for betting service providers on correctly calculating Point of Consumption Tax in NSW, including tax rates, compliance obligations, and audit requirements.

About Point of Consumption Tax (PoCT) 

On 1 January 2019, NSW introduced the PoCT under Part 4 of the Betting Tax Act 2001 (BTA), where Betting Service Providers (BSPs) licensed in Australia were initially liable to pay tax at a rate of 10% on their net NSW wagering revenue that exceeds $1,000,000 for the financial year.  

From 1 July 2022, the tax is now payable at a rate of 15%. 

Audit campaign 

Liquor & Gaming NSW (L&GNSW) has commenced an audit campaign on BSPs that accept wagers from NSW residents. 

The audit will examine compliance with the BTA, with particular reference, but not limited to: 

  • Registering with Revenue NSW within timeframes, 
  • Correct calculation of PoCT liability including the inclusion of the face value of free bets, 
  • Lodging returns in required timeframes (monthly and annual), 
  • Compliance with payment obligations, and 
  • Taking appropriate steps to determine the location of a customer. 

Clarification on Calculating PoCT 

Audit activity conducted by L&GNSW detected variances in how the industry is currently calculating net NSW wagering revenue.  

The net NSW wagering revenue must be calculated for: 

  • The period from 1 July of a financial year to the end of the current month – to determine if the BSP’s net NSW wagering revenue has exceeded $1,000,000 and if the current month is a ‘qualifying month’ to start paying PoCT. 
  • Each month after a qualifying month – to pay PoCT on a monthly basis. 
  • The financial year – to make an annual reconciliation and recalculate the BSP’s PoCT liability for the financial year.  

Section 13A of the BTA outlines how to calculate the net NSW wagering revenue. It has been identified each bet has multiple dates associated with it. 

The below table clarifies what dates are to be used to determine a BSP’s PoCT liability. 

Net NSW Wagering Revenue

Net NSW Wagering Revenue is calculated as the sum of the following: 

 Betting operation

Calculation (section 13A of the BTA) for a period

Clarification

Betting operators (other than a totalizator or betting exchange) - section 13A(1)(c), (d)-(e)

The sum of all NSW bets including the face value of free bets.

plus

  • Total fees and commissions associated with making the bets.

less

  • Total winnings paid or payable (but not including winnings paid in the form of credits or entitlements that can't be converted to money)
  • Total refunds paid (not including the amount paid or payable in credits or entitlements that can't be converted to money)

A BSP must also include the sum of the following:

  • any amounts the BSP became entitled to retain during the period on account of unclaimed winnings in relation to NSW bets, and
  • any other amounts the BSP became entitled to be paid during the period as consideration for, or in relation to, NSW bets made with the BSP.

The BSP must use a ‘money in, money out’ calculation based on the ledgers for a period.

All bets, including free bets, fees and commissions should be summed based on when the bet is placed.

All winnings and refunds should be deducted separately when they are paid or are payable.

Winnings and refunds do not need to correspond to the same bets placed in a period.  

 

 

What to do now? 

L&GNSW encourages all BSPs to review their current processes to ensure they are calculating their PoCT liability correctly at the end of each period (both monthly and for financial year reconciliation). 

If you observe any variance in how you have calculated PoCT, we encourage you to: 

  • Review your historical returns and determine their accuracy 
  • If necessary, contact Revenue NSW via email pointofconsumptiontax@revenue.nsw.gov.au to amend your historical returns, and make a voluntary disclosure. This should contain supporting calculations in an Excel format, with sufficient information to determine the nature and extent of the tax default. Your historical returns will be amended; however, this does not mean that Revenue NSW has otherwise reviewed your return and does not preclude you from subsequent compliance activity by L&GNSW
  • Ensure internal processes and procedures reflect this guidance on how to calculate PoCT moving forward.

 

Interest and penalty tax 

If you have calculated your PoCT incorrectly, this may create a tax default. Under the Taxation Administration Act 1996, tax defaults attract interest and penalty tax. More information is available on the Revenue NSW website: Interest and penalty tax.

 

Further information 

For enquiries, contact: 

Liqour & Gaming NSW - for audit campaign information  email: onlineaudit.revenue@liquorandgaming.nsw.gov.au

Revenue NSW - for amending returns, voluntry disclosures or payment plans, email: pointofconsumptiontax@revenue.nsw.gov.au

Download

Download Audit Campaign - Point of Consumption Tax PDF 788.86KB File last updated on: 24 March 2025.

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Type: Guide
Author: Liquor & Gaming NSW
Publication Date: 02 December 2025

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