When it comes to gambling, whether online or in gambling establishments like casinos, a person is supposed to pay a corresponding amount of gambling taxes depending on his winnings. Eachcountry has its own policy when it comes to computing tax charges for gambling winnings, and these laws differ from country to country. However, Australia has a rather interesting taxation law on gambling winnings that is so simple that every gambler would wish to have the same policy applied in their country.
Australia Treats Gambling taxes differently
Unlike other countries, the Australian government does not have gambling taxes on winnings, no matter how small or how big the amount is. Australia sees gambling not as a profession but as a hobby or recreational activity. The Australian government considers gains from gambling activities as a result of good luck and not as an income, so players are allowed to take home the entirety of the winnings and are not held liable to pay any amount of tax. They believe that even if a person wins big one time, he also loses a lot in other gambling activities, thus making things equal and fair, you can read more here.
Australia Taxes The Company’s
In order to compensate for the tax revenue that the state is supposed to gain from taxes on gambling winnings (which could amount to roughly 10% of the total state revenues), the government passes the tax burden to gambling operators instead. Each Australian state has a different policy on taxation of gambling operators and different gambling services have different forms of tax procedures. One example of gambling taxation is the turnover tax which covers racing and sports betting bookmakers, totalisator wagering on racing, draw card machines, lottery subscriptions, and Keno. Gambling operators are also required to pay taxes based on their profits which is calculated based on either player losses or net profits. These taxes are on top of the fees that gambling operators need to pay in order to obtain a license to offer their service such as casinos, lotteries, sports betting, poker machines, racing and sports betting, and minor gambling like bingo and raffle.
Obviously as a tax payer there may be different tax circumstances that affect you individually it’s always best to check with your tax adviser.