How to get a taxable win legally
How to get a taxable win legally
Current on: 11 August 2025
Short conclusion
In Australia, the taxation of winnings depends on player status. Amateurs do not pay tax on random winnings, but professionals are required to formalize them as income. Correct registration includes fixing the source of funds, preparing supporting documents and filing a tax return.
1. Determine if winnings are taxable
Not taxed: one-time winnings from amateurs (slots, bets, lotteries).
Taxable: profit of professional players, systematically obtained from gambling.
Cryptocurrency winnings - taxable at sale or exchange (CGT).
2. Prepare documents
Confirmation of the win (electronic receipt, letter from the casino, check).
Casino/bookmaker transaction history.
Bank statements with credits.
For cryptocurrency - a record of the rate at the time of receipt.
3. Report income on your tax return
For individuals - Individual tax return (form for ATO).
For companies or individual entrepreneurs - Business Activity Statement (BAS).
Gambling income is reported in the Other income section or in a separate line "Business income" for professionals.
4. Consider costs (for professionals)
Cost of participation in tournaments and competitions.
Expenses for travel, accommodation, meals.
Subscriptions to analytical services.
Direct costs associated with gaming activities.
5. Payment of tax
The rates depend on the total amount of income and the tax scale applied.
For residents - tax on world income.
For non-residents - tax only on income received in Australia.
6. Special cases
Big wins: With amounts above 10,000 AUD, the transfer is fixed by AUSTRAC.
Offshore casinos: with professional status, income is taxed in Australia, even if the payment is from abroad.
Cryptocurrency: When stored for more than 12 months, a CGT discount of up to 50% is possible.
7. Recommendations
Keep records of all transactions in a table or accounting program.
Keep confirmations for at least 5 years.
If in doubt about the status - request private ruling from ATO.
Use only licensed payment channels (PayID, POLi, bank transfer).
Conclusion
The legal registration of taxable winnings in Australia requires transparent accounting and compliance with ATO rules. For professionals, this means filing a declaration taking into account all income and expenses, and for amateurs, confirming the random nature of the win in case of verification.
Current on: 11 August 2025
Short conclusion
In Australia, the taxation of winnings depends on player status. Amateurs do not pay tax on random winnings, but professionals are required to formalize them as income. Correct registration includes fixing the source of funds, preparing supporting documents and filing a tax return.
1. Determine if winnings are taxable
Not taxed: one-time winnings from amateurs (slots, bets, lotteries).
Taxable: profit of professional players, systematically obtained from gambling.
Cryptocurrency winnings - taxable at sale or exchange (CGT).
2. Prepare documents
Confirmation of the win (electronic receipt, letter from the casino, check).
Casino/bookmaker transaction history.
Bank statements with credits.
For cryptocurrency - a record of the rate at the time of receipt.
3. Report income on your tax return
For individuals - Individual tax return (form for ATO).
For companies or individual entrepreneurs - Business Activity Statement (BAS).
Gambling income is reported in the Other income section or in a separate line "Business income" for professionals.
4. Consider costs (for professionals)
Cost of participation in tournaments and competitions.
Expenses for travel, accommodation, meals.
Subscriptions to analytical services.
Direct costs associated with gaming activities.
5. Payment of tax
The rates depend on the total amount of income and the tax scale applied.
For residents - tax on world income.
For non-residents - tax only on income received in Australia.
6. Special cases
Big wins: With amounts above 10,000 AUD, the transfer is fixed by AUSTRAC.
Offshore casinos: with professional status, income is taxed in Australia, even if the payment is from abroad.
Cryptocurrency: When stored for more than 12 months, a CGT discount of up to 50% is possible.
7. Recommendations
Keep records of all transactions in a table or accounting program.
Keep confirmations for at least 5 years.
If in doubt about the status - request private ruling from ATO.
Use only licensed payment channels (PayID, POLi, bank transfer).
Conclusion
The legal registration of taxable winnings in Australia requires transparent accounting and compliance with ATO rules. For professionals, this means filing a declaration taking into account all income and expenses, and for amateurs, confirming the random nature of the win in case of verification.
