Gambling Taxes Australia

You were lucky enough to win at an online casino? Congrats! Have you ever thought if there are taxes on Gambling in Australia? In this shot guide we will review the taxation on casino and sport betting wins in Australia.

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Taxes on Gambling in Australia

In Australia, gambling taxes are imposed at the state and territory level. The specific tax rates and regulations vary depending on the jurisdiction and type of gambling activity. For example, in New South Wales, a Point of Consumption Tax (POCT) of 10% is imposed on the gross revenue of licensed wagering operators, while in Victoria a 8% tax is imposed on the net revenue of licensed betting operators. Additionally, some states also impose taxes on specific types of gambling, such as a tax on gaming machine revenue. It’s important to note that the tax laws and regulations are subject to change and it’s always best to check with the relevant government agencies for the most current information.

List of gambling activities in the Australia that are taxable

In Australia, the following gambling activities are generally subject to taxes at the state and territory level:

  • Horse and greyhound racing
  • Sports betting
  • Lotteries
  • Casinos
  • Poker machines (also known as “slot machines” or “pokies”)
  • Bingo
  • Keno

What are the taxes on casino winnings?

In Australia, casino winnings are generally not subject to income tax. This is because gambling winnings are not considered to be taxable income under the Australian Taxation Office (ATO) guidelines. However, some states and territories impose taxes on the gross revenue of casinos, which is passed on to the players in the form of a “gaming tax” or “casino levy.”

Gambling taxes when playing at offshore (non Australia licensed casino)

When playing at an offshore, or non-Australia licensed casino, the tax implications can be different. Under Australian tax law, individuals are required to declare all income earned worldwide, including gambling winnings, and pay tax on that income in Australia. However, many offshore casinos do not have a legal obligation to report or withhold taxes on winnings for Australian residents.

It is the responsibility of the individual to declare any gambling winnings earned at an offshore casino on their Australian tax return, and pay the relevant tax. If you are unsure about the tax implications of playing at an offshore casino, it is recommended that you seek advice from a qualified tax professional or the Australian Taxation Office (ATO) for further guidance.

How to File taxes on gambling winnings?

In Australia, individuals are required to declare all income earned worldwide, including gambling winnings, and pay tax on that income in Australia. Here are the steps to file taxes on gambling winnings:

  1. Keep records of all gambling winnings: This includes receipts, tickets, statements, and any other documentation that shows the amount and date of the winnings.
  2. Report gambling winnings on your tax return: All gambling winnings, whether they are from an offshore or an Australian licensed casino, should be reported on your tax return as “other income” in the income section.
  3. Calculate the tax on your gambling winnings: Gambling winnings are subject to the same tax rates as other types of income. You will need to calculate the tax on your winnings by using the relevant tax tables or by consulting a tax professional.
  4. Lodge your tax return: You will need to lodge your tax return by the due date to avoid penalties.
  5. Keep records: Keep records of all gambling winnings and expenses for five years from the date of lodging the tax return, in case the Australian Taxation Office (ATO) requests them.

Can I claim gambling losses on my taxes?

In Australia, you may be able to claim gambling losses as a tax deduction, but only if you are carrying on a business of gambling. This means that you must be gambling in a professional or commercial sense, and not just as a hobby. If your gambling activities are considered a hobby, you will not be able to claim any gambling losses as a tax deduction.

To claim gambling losses as a tax deduction, you need to keep accurate records of your gambling activities, including the date, type of gambling, the amount wagered, and the amount of any winnings or losses. These records will need to be provided if requested by the Australian Taxation Office (ATO).

When you complete your tax return, you will need to declare any gambling income as “other income” and claim the losses as a deduction under the section “other deductions”.

What if I don’t pay my  gambling taxes

If you do not pay your gambling taxes, you may be subject to penalties and interest charges from the Australian Taxation Office (ATO). Failure to report gambling winnings or pay the relevant taxes can result in fines and penalties, and in severe cases, criminal prosecution.

The ATO may also take legal action to recover any unpaid taxes, including garnishing wages or bank accounts, or placing a lien on property. The ATO may also apply penalties for failing to report gambling winnings or failing to keep accurate records of gambling activities.

Are gambling winnings taxed in Australia?

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Gambling winnings are not considered to be taxable income under the Australian Taxation Office (ATO) guidelines. However, some states and territories may impose taxes on the gross revenue of casinos, which can be passed on to players in the form of a “gaming tax” or “casino levy.”

Can I claim gambling losses on my taxes?

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You may be able to claim gambling losses as a tax deduction, but only if you are carrying on a business of gambling. This means that you must be gambling in a professional or commercial sense, and not just as a hobby.

What happens if I don't pay my gambling taxes?

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If you do not pay your gambling taxes, you may be subject to penalties and interest charges from the Australian Taxation Office (ATO). Failure to report gambling winnings or pay the relevant taxes can result in fines and penalties, and in severe cases, criminal prosecution.

Do I have to pay taxes on gambling winnings earned at an offshore casino?

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Yes, under Australian tax law, individuals are required to declare all income earned worldwide, including gambling winnings, and pay tax on that income in Australia.

How do I file taxes on my gambling winnings?

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To file taxes on gambling winnings, you will need to keep records of all gambling winnings, report the winnings on your tax return as “other income”, calculate the tax on the winnings, and lodge the tax return by the due date.

Australia Gambling taxation references

  1. Australian Taxation Office (ATO): The ATO is the government agency responsible for collecting taxes in Australia. They provide information on tax laws and regulations, including those related to gambling winnings – https://www.ato.gov.au/
  2. State and Territory Revenue Offices: Each state and territory in Australia has its own revenue office that provides information on taxes and regulations specific to that jurisdiction.
    https://www.arnecc.gov.au/resources/links/revenue_offices/
  3. Professional Bodies such as Institute of Public Accountants (IPA), Chartered Accountants Australia and New Zealand (CAANZ), CPA Australia, National Tax and Accountants’ Association (NTAA) can provide guidance and assistance with tax related matters. – https://www.publicaccountants.org.au/

Read more: Gambling Taxes in Canada

 

Amelia Taylor
Amelia Taylor Casino Auditor Last Updated: January 19, 2023

Amelia is huge fan of online casinos and Pokies. She was born in Sydney, Australia and spent last few years as an iGaming copywritter.

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