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BOOKMAKERS (TAXATION) (BET BACK) AMENDMENT
BILL 1993
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The Racing Taxation (Betting Tax) Act 1952 provides that bookmakers are to be
taxed (currently at the rate of 1%) on the total amount of bets they accept.
Bookmakers who wish to offset the possibility of being liable for a large payout on,
for example, a particular contestant in a race may place bets on that contestant with
another bookmaker (or on the Totalizator). To do so, they use some of the money they
have taken in bets on that contestant. This practice is known as "betting back".
A bet that is bet back attracts the payment of tax at least twice (firstly on the initial
bet and secondly on the bet back). If the bet back is the subject of further bets back, the
tax is paid each time a bet is made.
The object of this Bill is to provide for a rebate of the tax payable on a bet if the bet
is bet back.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides that the proposed Act is to commence on a day to be appointed
by proclamation.
Clause 3 gives effect to the Schedule of amendments, to the Bookmakers (Taxation)
Act 1917.
Schedule 1 amends the Bookmakers (Taxation) Act 1917 in the following ways:
· it inserts a definition of "bet back"
· it permits bookmakers to claim the rebate concerned
· it specifies the criteria that must be met before the rebate can be granted
· it makes consequential amendments.
Amounts claimed as having been wagered in bets back must not exceed the amount of
the related bets taken. The claim must be lodged in the prescribed form and supported
by a declaration verifying the correctness and accuracy of the matters included in the
claim.