Guide for filling out a declaration taking into account winnings
In Australia, the tax reporting of gambling income depends on the player's status and the nature of their activities. For most citizens, gambling winnings earned accidentally and not on a regular basis are not taxable. However, if the game is treated as a business activity or primary source of income, they must be listed on the tax return.
Step 1. Determine whether to include winnings in the declaration
Not included: episodic winnings with no signs of systematic play.
Includes: regular income from the game, professional gambling, winnings received abroad and subject to taxation under international agreements.
Step 2. Prepare documents
Bank and game account statements.
Casino receipts, deposit and withdrawal confirmations.
Documents on the origin of the starting capital (salary, sale of property, inheritance).
Accounting for game-related income and expenses (for professional players).
Step 3. Fill in the relevant sections of the declaration
1. Income - Specify the taxable amount of the winnings.
2. Business income - Use if the game is recognized as an entrepreneurial activity.
3. Foreign income - Add foreign winnings based on tax agreements.
Step 4. Consider deductions and expenses
Professional players can claim deductions for expenses directly related to the game (travel, equipment, commissions).
Each spend must be documented.
Step 5. Check the data and file a declaration
Make sure the amounts match your bank statements.
Keep a copy of the filed declaration and all supporting documents for at least 5 years.
Common errors:
Recommendations:
Conclusion
Completing your tax return with Australian winnings requires accuracy and knowledge of the law. Clearly documenting transactions and correctly classifying income helps avoid fines and claims from the ATO.
Step 1. Determine whether to include winnings in the declaration
Not included: episodic winnings with no signs of systematic play.
Includes: regular income from the game, professional gambling, winnings received abroad and subject to taxation under international agreements.
Step 2. Prepare documents
Bank and game account statements.
Casino receipts, deposit and withdrawal confirmations.
Documents on the origin of the starting capital (salary, sale of property, inheritance).
Accounting for game-related income and expenses (for professional players).
Step 3. Fill in the relevant sections of the declaration
1. Income - Specify the taxable amount of the winnings.
2. Business income - Use if the game is recognized as an entrepreneurial activity.
3. Foreign income - Add foreign winnings based on tax agreements.
Step 4. Consider deductions and expenses
Professional players can claim deductions for expenses directly related to the game (travel, equipment, commissions).
Each spend must be documented.
Step 5. Check the data and file a declaration
Make sure the amounts match your bank statements.
Keep a copy of the filed declaration and all supporting documents for at least 5 years.
Common errors:
- Misclassification of winnings as non-taxable income.
- No confirmations for large transactions.
- Ignoring foreign winnings.
Recommendations:
- If in doubt, get advice from a tax specialist.
- Do not split transactions to hide the winning amount.
- Always ensure full transparency of financial transactions.
Conclusion
Completing your tax return with Australian winnings requires accuracy and knowledge of the law. Clearly documenting transactions and correctly classifying income helps avoid fines and claims from the ATO.
