Tasmania's racing industry is set to cash in on the majority of revenue generated by the state's new point of consumption tax for betting providers.
It was announced on Sunday 80 per cent of revenue generated through the tax, which commenced on January 1 this year, would be invested back into the industry.
Premier Peter Gutwein said consultation with the racing community informed how the tax revenue would be split, with 80 per cent going into the industry and 20 per cent to government.
"What this means is we will be making a significant investment of around $4 million a year, ongoing, into the racing industry," Mr Gutwein said.
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"It will help with stakes, infrastructure and animal welfare."
The government's revenue share has not been allocated in the budget over the forward estimates.
Mr Gutwein said betting companies would be impacted minimally by the tax, with Tasmania joining other jurisdictions who already have it in place.
"This is a tax on the betting companies, not on the punters. We don't think it will have much impact at all," he said.
"The racing industry is very important to Tasmania.
"It has a direct economic benefit into our economy of around $103 million each year. Importantly, it provides 5500 direct and indirect jobs for Tasmanians."
Racing Minister Jane Howlett said she looked forward to meeting with key stakeholders in coming weeks to discuss the distribution of the tax.
In other news:
Labor finance spokesman David O'Byrne said, while Labor welcomed an end to ongoing uncertainty surrounding the tax, there was still a lack of clarity on how the money would be spent.
"Particularly given the Liberals' election commitment of a 4 per cent stakes increase per year is yet to be delivered," Mr O'Bynre said.
"There is growing doubt this announcement will deliver on this election commitment to the industry.
"The tax has been raising revenue for over a month now and it has taken Labor to keep the pressure on to get an announcement."
The tax has been set at 15 per cent of the net wagering revenue of betting companies which is consistent with most other jurisdictions.
There is a tax-free threshold of $150,000 in betting turnover.