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Australia Gambling & Gaming Tax Guide

Australian gambling and gaming taxation. The guide covers: the gambling winnings for the recreational gamblers — the 'gambling winnings' (the 'lottery winnings', the 'casino winnings', the 'poker winnings', the 'sports betting winnings', the 'racing winnings') are 'tax-free' for the 'recreational gamblers' (the 'individuals who gamble for the 'recreation' and NOT for the 'business' or the 'profession'); the 'gambling winnings' are 'exempt from the tax' under the 'common law principle' — the 'gambling is NOT the 'ordinary income' under the 'Section 6-5 of the ITAA 1997' (the 'gambling winnings are the 'windfall gains' and are NOT the 'assessable income'); the 'gambling losses' are NOT 'deductible' (the 'private expenses' are NOT 'deductible'); the professional gamblers — the 'professional gamblers' (the 'individuals who gamble for the 'profit-making purpose' and the 'systematic business') are 'subject to the tax on the gambling winnings' — the 'gambling income' is the 'ordinary income' under the 'Section 6-5 of the ITAA 1997'; the 'professional gambler' is the 'individual who carries on the 'business of gambling' (the 'systematic approach', the 'skill-based gambling', the 'regular wagering', the 'substantial amounts'); the 'professional gambler' can claim the 'deductions for the gambling expenses' (the 'entry fees', the 'travel', the 'equipment', the 'subsidies'); the 'professional gambler' must 'register for the ABN' and may need to 'register for the GST' if the 'GST turnover is $75,000 or more'; the gaming machine tax (the 'pokies tax') — the 'gaming machines' (the 'pokies') are 'subject to the state gaming machine tax' (the 'pokies tax') — the 'rates vary by the state': (i) the 'NSW gaming machine tax' — the 'rates from 0% to 25%' depending on the 'venue type' (the 'clubs', the 'hotels') and the 'number of the machines', (ii) the 'VIC gaming machine tax' — the 'rates from 3.18% to 57.71%' depending on the 'venue category' (the 'Category 1, 2, 3'), (iii) the 'QLD gaming machine tax' — the 'rates from 0% to 20%' depending on the 'venue type' and the 'machine numbers', (iv) the 'WA gaming machine tax' — the 'rate of $1,000 to $2,000 per machine per year' (the 'WA has the limited gaming machines'), (v) the 'SA gaming machine tax' — the 'rates from 0% to 30%'; the online gambling licensing and the tax — the 'online gambling' (the 'online sports betting', the 'online casino', the 'online poker') is 'regulated by the states' under the 'Interactive Gambling Act 2001' and the 'state licensing regimes'; the 'online gambling operators' must 'hold the state licence' and 'pay the point of consumption tax (the 'POCT')' — the 'POCT rate' is 15% of the 'net wagering revenue' in the 'most states' (the 'NSW', the 'VIC', the 'QLD', the 'WA', the 'SA', the 'ACT' — the '15% POCT'); the 'online gambling operators' are also 'subject to the corporate tax' on the 'Australian income'.

Gambling Winnings & Tax

  • Recreational gamblers — tax-free: The 'lottery, the casino, the poker, the sports betting, and the racing winnings' are 'tax-free' for the 'recreational gamblers'.
  • Professional gamblers — taxable: The 'professional gamblers' who 'carry on the business of gambling' are 'taxed on the gambling income'.
  • Gambling losses: The 'gambling losses' are NOT 'deductible' for the 'recreational gamblers'.

For the business income and the PSI rules, see our Personal Services Income Guide →.

Gaming Machine Tax (Pokies)

  • NSW: The 'gaming machine tax' — 0% to 25% depending on the 'venue type' and the 'machine numbers'.
  • VIC: The 'gaming machine tax' — 3.18% to 57.71% depending on the 'venue category'.
  • QLD: The 'gaming machine tax' — 0% to 20% depending on the 'venue type'.

For the state taxes and the stamp duty, see our State Stamp Duty & Land Tax Guide →.

Online Gambling Tax

  • Point of consumption tax (POCT): The '15% POCT' on the 'net wagering revenue' in the 'most states'.
  • Online gambling licensing: The 'online gambling operators' must 'hold the state licence' under the 'Interactive Gambling Act 2001'.

For the corporate tax and the company tax returns, see our Corporate Tax Guide →.