Casino Winnings Tax Australia
Gambling Income Tax in Australia. Australia taxes professional gamblers income tax at a rate of 30%. This is not a concern to anyone other than those gambling as a profession / primary source of income. For all recreational players gambling is generally not considered income for tax purposes. The primary purpose for the absence to get taxed on gambling winnings in Australia is that the gambling operators are saddled. This taxation contrasts between the areas. There are charges on the turnover sum, on player loss and on net profit.
As Tax Agents and accountants we get asked this quite often. Some countries are taxed on their gambling winnings. Australia is the lucky country and the income derived from these activities is not taxable for three main reasons:-
1) It’s generally not considered a profession. It’s a hobby or recreational activity.
Casino Winnings Tax Australia 2020
Casino Winnings Tax Australia 2019
2) Gambling is generally seen to have a large element of luck in it. Most would be gamblers would lose money rather than win. For that reason the ATO would not be prepared to deduct losses from gambling.
3) The government taxes the gambling operators instead. Also the government will charge the operators to become officially licensed Have a great day watching the race that stops the nation and gamble responsibly