do lottery winning get taxed?

[rodimus]

Does the ATO tax lottery winnings?

 

[sunshine]

No tax payable at all. If you are lucky enough to win, you get to keep it all to yourself.

 

[rodimus]

someone in the USA won $2 million and had to pay $900,000+ as tax...

lucky us here!

 

[redwing]

Ssssssssshhhhhhhhhhh

Don't give them any ideas

 

[kathryn d]

No tax payable at all. If you are lucky enough to win, you get to keep it all to yourself.

Same here in Canada too.
Now I just need to pick the right numbers.

 

[travelbug]

Correct me if I'm wrong but I thought you paid tax if you won twice (like that would be a problem?). It's considered you are a professional gambler?

 

[Lamingtons]

No gambling winnings are not taxed. Imagine if people start claiming their losses!

 

[skater]

Correct me if I'm wrong but I thought you paid tax if you won twice (like that would be a problem?). It's considered you are a professional gambler?

Winning twice hardly makes you a professional gambler.

 

[moyjos]

No tax payable at all. If you are lucky enough to win, you get to keep it all to yourself.

Not quite all to yourelf....they tax you on any interest
So I guess the trik would be to blow the lot


I could have fun trying. $1m lotto could buy around 5-8 IP's

 

[Miss V]

I'm sure the government would LOVE to tax winnings, unfortunately they would then have to give you a deduction on amount spent. All the mathies out there, what would that work out to?

 

[BlackSpider]

You are taxed when you buy the lottery ticket.
They only payout about 50% of takings don't they?

 

[Belu]

its considered a hobby and therefore wins or losses do not come into play for tax.

however if your main source of income is from it and you have a systemised approach to it i think it can be taxable. im no tax accountant though - seek yours for advice if you win!

but saying that, the odds on tattslotto are 1 in 8 million and the odds on powerball are.... wait for it... 1 in 56 million!

so everyone in australia, even new borns, would need to buy 2 tickets with some left over for us to cover all the combinations.

 

[GreatPig]

unfortunately they would then have to give you a deduction on amount spent

Losses could theoretically be deductible if you were in the business of playing lotteries, but I think the tax office might use the fact that lotteries are pure chance and have a predetermined negative expectancy, and then claim it's a non-commerical operation (ie. one that can't be expected to make a profit over the long term).

GP

 

[Miss V]

its considered a hobby and therefore wins or losses do not come into play for tax.

Can I declare my property investing a hobby then?

 

[Nathan]

Could be good way of stimulating the economy... make the odds for lotto better in low socio economic areas.

 

[Patosan]

Can I declare my property investing a hobby then?

Since I think a large proportion of property investors are neg geared ... hobby status would be a HUGE downer.

 

[Olly]

No tax paid on winnings made at the races either!

Question though:
What about money held in TAB accounts? Are they reported? Or reported over a certain amount? I know the money earns no interest but is it a good place to hide money?

Olly

 

[sunshine]

Or reported over a certain amount? I know the money earns no interest but is it a good place to hide money?

Olly

Reported over a certain amount. $10k rings a bell but no longer familiar. Not a good place to hide money, but apparently was a very good launder once upon a time.

sunshine