Do I need to declare winnings in the tax return
Do I need to declare winnings in the tax return
Current on: 11 August 2025
Short conclusion
In Australia, gambling enthusiasts are not required to report winnings on their tax return as they are not considered taxable income. Professional players and persons conducting gaming activities as a business are required to declare their winnings and pay tax.
1. ATO position
The Australian Taxation Office (ATO) determines the need to declare winnings based on the nature of the activity:
2. When a declaration is not needed
One-off or irregular play.
The winnings are random.
Gambling income is not the main source of funds.
Example:
3. When declaration is mandatory
1. Professional players
Gambling is the main source of income.
The game is regular and systemic, for the purpose of making a profit.
2. Business model in gambling
Arbitration rates.
Player pool organization.
System bonus hunting.
3. International professional winnings
Tournaments abroad.
Offshore casinos at regular profit.
Example:
4. Documents worth keeping
Betting and gaming history.
Confirmations of payments from a casino or bookmaker.
Bank statements with receipts.
Receipts for contributions and expenses (for professionals - for writing off costs).
5. Consequences of non-declaration
Accrual of tax on penalties and fines.
Checking sources of income for large transfers.
Possible classification of activities as hidden business.
6. Recommendations
Lovers - keep documents on large winnings in case of bank requests.
Professionals - keep accounting records and submit a declaration annually.
In controversial situations, request private ruling from the ATO to confirm your status.
Conclusion
In Australia, gambling winnings are indicated in the tax return only if the player operates as a business or is a professional. Declaration is not required for amateurs, but it is recommended to keep proof of winnings for financial transparency.
Current on: 11 August 2025
Short conclusion
In Australia, gambling enthusiasts are not required to report winnings on their tax return as they are not considered taxable income. Professional players and persons conducting gaming activities as a business are required to declare their winnings and pay tax.
1. ATO position
The Australian Taxation Office (ATO) determines the need to declare winnings based on the nature of the activity:
- Hobbies - winnings are not included in the declaration.
- Business/professional game - winnings are treated as income and declared without fail.
2. When a declaration is not needed
One-off or irregular play.
The winnings are random.
Gambling income is not the main source of funds.
Example:
- The Sydney-based player won 75,000 AUD in online slots playing every other month - no tax return required.
3. When declaration is mandatory
1. Professional players
Gambling is the main source of income.
The game is regular and systemic, for the purpose of making a profit.
2. Business model in gambling
Arbitration rates.
Player pool organization.
System bonus hunting.
3. International professional winnings
Tournaments abroad.
Offshore casinos at regular profit.
Example:
- A Melbourne poker player earning AUD 150,000 a year is required to declare income and pay tax.
4. Documents worth keeping
Betting and gaming history.
Confirmations of payments from a casino or bookmaker.
Bank statements with receipts.
Receipts for contributions and expenses (for professionals - for writing off costs).
5. Consequences of non-declaration
Accrual of tax on penalties and fines.
Checking sources of income for large transfers.
Possible classification of activities as hidden business.
6. Recommendations
Lovers - keep documents on large winnings in case of bank requests.
Professionals - keep accounting records and submit a declaration annually.
In controversial situations, request private ruling from the ATO to confirm your status.
Conclusion
In Australia, gambling winnings are indicated in the tax return only if the player operates as a business or is a professional. Declaration is not required for amateurs, but it is recommended to keep proof of winnings for financial transparency.
