Split tax liability between player and operator
In Australia, the gambling tax system is built so that the main tax burden falls on operators, not players. However, tax liability exists on both sides, and its distribution is regulated by federal and regional legislation.
Principal difference
Operator: has a tax obligation to pay taxes on gross gaming income (GGR) or through point-of-consumption tax (POCT).
Player: in most cases, exempt from winnings tax if the game is amateur in nature, but may have obligations to declare income in a professional or foreign game.
Operator responsibilities:
Rates vary by state or territory (e.g. 15-25% GGR for online gambling).
2. Data transfer to AUSTRAC
Reports of large and suspicious transactions.
3. License Compliance
Maintaining transparent financial statements.
4. Informing players
Provide information on the rules for taxing winnings.
Player responsibilities:
Professional play, sponsorship income or overseas casinos.
2. Confirmation of the legality of funds
Storage of receipts, bank statements and transaction reports.
3. Compliance with financial legislation
Avoid structuring payments, play only on licensed platforms.
Key responsibility sharing situations:
The operator pays tax on GGR.
The player does not pay tax or declare income.
Professional player wins systematically
The operator pays tax on GGR.
The player pays income tax as a business.
Winning in an offshore online casino
Operator overseas - Australia does not pay tax.
The player is required to declare income if taxable.
Winnings with cash payment over 10,000 AUD
The operator submits the report to AUSTRAC.
The player may be required to explain the origin of the funds.
Risks in case of breach of duties:
Conclusion
In Australia, tax liability in gambling is distributed so that operators bear the bulk of the burden, but players are required to declare income if the game bears signs of business or is associated with overseas winnings. A clear understanding of each party's responsibilities helps avoid conflicts with the ATO and financial regulators.
Principal difference
Operator: has a tax obligation to pay taxes on gross gaming income (GGR) or through point-of-consumption tax (POCT).
Player: in most cases, exempt from winnings tax if the game is amateur in nature, but may have obligations to declare income in a professional or foreign game.
Operator responsibilities:
- 1. Payment of taxes and fees
Rates vary by state or territory (e.g. 15-25% GGR for online gambling).
2. Data transfer to AUSTRAC
Reports of large and suspicious transactions.
3. License Compliance
Maintaining transparent financial statements.
4. Informing players
Provide information on the rules for taxing winnings.
Player responsibilities:
- 1. Declaration of taxable income
Professional play, sponsorship income or overseas casinos.
2. Confirmation of the legality of funds
Storage of receipts, bank statements and transaction reports.
3. Compliance with financial legislation
Avoid structuring payments, play only on licensed platforms.
Key responsibility sharing situations:
- Amateur wins at licensed Australian casino
The operator pays tax on GGR.
The player does not pay tax or declare income.
Professional player wins systematically
The operator pays tax on GGR.
The player pays income tax as a business.
Winning in an offshore online casino
Operator overseas - Australia does not pay tax.
The player is required to declare income if taxable.
Winnings with cash payment over 10,000 AUD
The operator submits the report to AUSTRAC.
The player may be required to explain the origin of the funds.
Risks in case of breach of duties:
- For operators: fines, license revocation, blocking activities.
- For players: additional taxes, fines, suspicions of money laundering.
Conclusion
In Australia, tax liability in gambling is distributed so that operators bear the bulk of the burden, but players are required to declare income if the game bears signs of business or is associated with overseas winnings. A clear understanding of each party's responsibilities helps avoid conflicts with the ATO and financial regulators.
