1. Do You Get Taxed On Gambling Winnings In Australia Dollars
2. Do You Get Taxed On Gambling Winnings In Australia Today

GST when conducting gambling activities. If you conduct gambling activities, GST is payable on the margin between money received and money paid out for a gambling event. The primary purpose for the absence to get taxed on gambling winnings in Australia is that the gambling operators are saddled. This taxation contrasts between the areas. There are charges on the turnover sum, on player loss and on net profit. Australians that punt as their day job do pay income tax on their winnings but could also claim deductions for gambling costs. But it is very difficult to be considered a professional gambler.

• Known as gambling income, the money you earn from wagers and bets as well as lotteries, sweepstakes, etc. All must be taxed. In some cases, you will be provided with tax forms that must be turned in to the federal government. The full amount of the gambling income minus the cost of the winning bet will be included on this form.
• Gambling winnings are subject to federal and Minnesota income taxes. This includes winnings from the Minnesota State Lottery and other lotteries. You’re responsible to report and pay income tax on all prizes and winnings, even if you did not receive a federal Form W-2G.

• by Peter Locandro
• in Tax & Accounting
• 30/10/2019

This year, the Melbourne Cup or the race that stops a nation, as is locally known, will be on November 5 and as it draws near, the question of whether the Australian Taxation Office (ATO) considers gambling winnings taxable often crop up.

With a total prize pool of 8 million dollars, the Melbourne Cup 2019 is expected to draw a big crowd of spectators and gamblers alike. Australia has the highest rate of gamblers in the world with 80% of its adult population engage in gambling.

Are Gambling Winnings Taxable?

So, are gambling winnings taxable? The ATO views money gained from gambling activities not as an income but as a result of good luck. In Australia, gambling winnings, including lottery winnings, are not subject to taxes.

The only time gambling winnings become taxable is when you own a betting or a gambling business and you place a bet yourself. The winnings from your bet-backs or lay-offs, as they are called, are treated by the ATO as gambling sales and gambling sales are taxable.

If you are a professional gambler, the ATO may also tax your winnings. Over the years, the ATO has pursued people who make their living from gambling. There was a cop who was fined $5500 for hiding gambling winnings from the ATO. There was also the case of Zeljko Ranogajec and David Walsh and their “Punters Club” that the ATO treated as a business and not a hobby.

You need not worry though, if you just happen to like to gamble a lot because to be classed as a “professional gambler” by the ATO, you must have business connections with the gambling industry.

For instance, if you’re betting on the Melbourne Cup and you are a horse breeder or a horse trainer by profession, then your gambling winnings are taxable. Otherwise, gambling winnings of recreational gamblers are tax-free just as gambling winnings of hobby racehorse owners are.

What About Gambling Losses?

Because the ATO does not consider gambling winnings taxable income, you can’t also claim deductions for all the time you lost on the table, in a racing bet or a lottery, however grand the money involved may be.

Conversely, if you own a horse racing business, then you may enjoy certain tax benefits like Goods and Services Tax (GST), Capital Gains Tax (CGT), and other tax deductions. Take note that hobby owners of racehorses may also be eligible for CGT benefits.

Ready to Bet on the Melbourne Cup 2019?

Take advantage of tax-free gambling winnings in Australia and bet to your heart’s content! The ATO does not treat gambling winnings taxable, so go ahead, pick your winning horse and hope it wins the race.

Have a gambling business and need tax help for your gambling sales? Contact a Chan & Naylor accounting specialist here.

Do You Get Taxed On Gambling Winnings In Australia Dollars

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Do You Get Taxed On Gambling Winnings In Australia Today

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