Tax liabilities for large winnings
Tax liabilities for large winnings
Current on: 11 August 2025
Short conclusion
In Australia, a big gambling win is not taxed on its own if the gambler is an amateur. However, such amounts can attract the attention of the Australian Taxation Office (ATO) and cause a check on the origin of the funds. In some cases, especially with the status of a professional player or international transfers, taxes are still applied.
1. Total tax position for large winnings
For amateurs, gambling winnings, regardless of amount, are not taxable.
For professional players, large winnings are considered income and taxable.
Large transactions via banks (> 10,000 AUD) are subject to automatic reporting under AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing Act).
2. When Tax May Arise
1. Professional status - if the ATO establishes that gambling is the main source of income.
2. Regular large winnings - can be regarded as a business activity.
3. International winnings - especially from offshore casinos where separate tax rules apply.
4. Suspicions of money laundering - when transferring significant amounts without a transparent source.
3. Check the origin of funds
In a large win, the bank or ATO may request:
4. Examples of situations
Amateur: A Perth gambler won AUD 500,000 at a licensed AU casino. The tax was not applied, but the bank requested confirmation of payment.
Professional: Melbourne poker player wins AUD 250,000 in tournament series The tax is charged as business income.
International Transfer: Winning 100,000 AUD from an offshore casino triggered AML/CTF review, but no tax accrued due to amateur status.
5. Recommendations for big wins
Save all documents confirming winning and participation in the game.
Use licensed Australian casinos to help confirm your funding source.
Take into account possible commissions and checks when making international transfers.
Professional players - take into account the tax burden in advance and keep track of income.
If in doubt, consult a tax professional or request clarification from the ATO.
Conclusion
Big winnings in Australia are tax-free for amateurs but are always in the sights of banks and regulators. For professional players, they are considered taxable income. Clear documentation and selection of licensed sites help to avoid complications during inspections.
Current on: 11 August 2025
Short conclusion
In Australia, a big gambling win is not taxed on its own if the gambler is an amateur. However, such amounts can attract the attention of the Australian Taxation Office (ATO) and cause a check on the origin of the funds. In some cases, especially with the status of a professional player or international transfers, taxes are still applied.
1. Total tax position for large winnings
For amateurs, gambling winnings, regardless of amount, are not taxable.
For professional players, large winnings are considered income and taxable.
Large transactions via banks (> 10,000 AUD) are subject to automatic reporting under AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing Act).
2. When Tax May Arise
1. Professional status - if the ATO establishes that gambling is the main source of income.
2. Regular large winnings - can be regarded as a business activity.
3. International winnings - especially from offshore casinos where separate tax rules apply.
4. Suspicions of money laundering - when transferring significant amounts without a transparent source.
3. Check the origin of funds
In a large win, the bank or ATO may request:
- History of betting and casino play.
- Confirmation of payments from the operator.
- Contracts or bonus terms if the winnings were related to shares.
- Financial statements for regular gambling income.
4. Examples of situations
Amateur: A Perth gambler won AUD 500,000 at a licensed AU casino. The tax was not applied, but the bank requested confirmation of payment.
Professional: Melbourne poker player wins AUD 250,000 in tournament series The tax is charged as business income.
International Transfer: Winning 100,000 AUD from an offshore casino triggered AML/CTF review, but no tax accrued due to amateur status.
5. Recommendations for big wins
Save all documents confirming winning and participation in the game.
Use licensed Australian casinos to help confirm your funding source.
Take into account possible commissions and checks when making international transfers.
Professional players - take into account the tax burden in advance and keep track of income.
If in doubt, consult a tax professional or request clarification from the ATO.
Conclusion
Big winnings in Australia are tax-free for amateurs but are always in the sights of banks and regulators. For professional players, they are considered taxable income. Clear documentation and selection of licensed sites help to avoid complications during inspections.
