What winnings are considered taxable
What winnings are considered taxable
Current on: 11 August 2025
Short conclusion
In Australia, most gambling winnings, including online casinos, betting and lotteries, are tax-free if the player acts as an amateur. Taxation arises when an activity is in the nature of a business or professional practice.
1. ATO General Position
Amateurs: Winnings are tax-free, regardless of amount.
Professionals: Winnings are treated as income and taxed at individual or business rates.
The ATO assesses the nature, regularity and purpose of the game to determine status.
2. Winnings that are taxable
1. Professional player income
The main source of income is gambling (poker, betting, casino).
Regular, system game with profit calculation.
Using strategies, investments, and tools to increase revenue.
2. Winnings from gambling-related businesses
Arrangement of rates or arbitration schemes.
Bonus hunting programs if they generate stable income.
3. International Professional Status Wins
Tournaments abroad.
Online games in foreign casinos with systemic profits.
3. Winnings that are not taxed
One-off wins at licensed AU casinos.
Large jackpots in the absence of professional gaming activities.
Lotteries, scratch cards and betting as a form of leisure.
4. How the ATO determines taxable winnings
Criteria:
5. Case studies
Amateur: Player won 200,000 AUD in online slots by playing several times a month - no tax applied.
Professional: The poker player receives 150,000 AUD per year from tournaments alone - tax is mandatory.
Bonus hunter: systematically uses casino shares for guaranteed income - tax is charged both from commercial activities.
6. Recommendations
Amateurs: Keep a history of bets and payouts to confirm status.
Professionals: keep records of income, expenses and submit declarations.
In controversial situations - request private ruling from ATO for official confirmation.
Conclusion
In Australia, only winnings resulting from professional or business activities are taxable. For most players, winnings remain tax-free, but it's important to understand how the ATO determines income status and nature to avoid misunderstandings.
Current on: 11 August 2025
Short conclusion
In Australia, most gambling winnings, including online casinos, betting and lotteries, are tax-free if the player acts as an amateur. Taxation arises when an activity is in the nature of a business or professional practice.
1. ATO General Position
Amateurs: Winnings are tax-free, regardless of amount.
Professionals: Winnings are treated as income and taxed at individual or business rates.
The ATO assesses the nature, regularity and purpose of the game to determine status.
2. Winnings that are taxable
1. Professional player income
The main source of income is gambling (poker, betting, casino).
Regular, system game with profit calculation.
Using strategies, investments, and tools to increase revenue.
2. Winnings from gambling-related businesses
Arrangement of rates or arbitration schemes.
Bonus hunting programs if they generate stable income.
3. International Professional Status Wins
Tournaments abroad.
Online games in foreign casinos with systemic profits.
3. Winnings that are not taxed
One-off wins at licensed AU casinos.
Large jackpots in the absence of professional gaming activities.
Lotteries, scratch cards and betting as a form of leisure.
4. How the ATO determines taxable winnings
Criteria:
- Frequency and regularity of bets.
- Total gambling income for the year.
- Availability of business approach (strategies, bankroll management, partnerships).
- Dependence on play as a source of livelihood.
5. Case studies
Amateur: Player won 200,000 AUD in online slots by playing several times a month - no tax applied.
Professional: The poker player receives 150,000 AUD per year from tournaments alone - tax is mandatory.
Bonus hunter: systematically uses casino shares for guaranteed income - tax is charged both from commercial activities.
6. Recommendations
Amateurs: Keep a history of bets and payouts to confirm status.
Professionals: keep records of income, expenses and submit declarations.
In controversial situations - request private ruling from ATO for official confirmation.
Conclusion
In Australia, only winnings resulting from professional or business activities are taxable. For most players, winnings remain tax-free, but it's important to understand how the ATO determines income status and nature to avoid misunderstandings.
