AUD and Australian winnings taxation
Introduction
1. When winnings aren't taxed
1. Rare or irregular winnings
Gift freespins, one-time large prizes, single successes in slots and bets - all this is considered a hobby.
2. Lack of a professional system
You don't use mathematical models, you don't organize a betting group, you don't advertise yourself as a professional gambler.
3. No tax on winnings
The ATO explicitly states: "By law, gambling winnings are generally not included in taxable income." - Australian Taxation Office.
2. When winnings need to be declared
1. Continuous professional activity
Regular big wins, if you keep records of bets as a business, buy information about matches, use analysis software.
2. Gambling as a service
If you organize bets for third parties on a paid basis, even if you play yourself, this is a business activity.
3. Additional income through rent of accounts
If you get a percentage of other players' bets on your accounts, the ATO will treat it as professional income.
3. Reporting and evidence
1. Save statements
Casino statements in AUD: deposit, bet amounts and winnings.
2. Keep a log
Date, game, bet, win: simple table or CSV export.
3. Verification documents
Save copies of letters from the casino about large payments and confirmation of transactions through PayID/Osko.
4. Filing a declaration
If you are a professional, include net income (winnings minus bets and fees) in the "Business Income" section of your tax return.
4. Exceptions and nuances
Interest on winnings: if you leave money in a casino account and receive interest (rarely), this is already investment income.
Gift points and perks: No-vager bonus credits count as winnings before conversion to real money.
International casinos: The ATO does not distinguish between Curacao, MGA or UKGC - it matters where you are tax resident.
5. Practical recommendations
1. Play smart
One-time promotions and freespins without a wager are a safe "hobby" format.
2. Don't position yourself as a professional
Avoid paid strategies and public statements about betting revenue.
3. Reserve fund
Designate a separate bank account or eWallet for winnings so as not to mix with regular finances.
4. Consultation with accountant
If in doubt, consult an ATO-approved tax agent.
Conclusion
For most Australian gamblers, AUD winnings from online casinos remain under the radar of the Internal Revenue Service and do not require a return. However, with regular or "professional" gaming activity, the ATO may require that net income be included in taxable income. A clear record of transactions, a betting log and consultation with a qualified tax agent will help you avoid trouble and save your winnings.
1. When winnings aren't taxed
1. Rare or irregular winnings
Gift freespins, one-time large prizes, single successes in slots and bets - all this is considered a hobby.
2. Lack of a professional system
You don't use mathematical models, you don't organize a betting group, you don't advertise yourself as a professional gambler.
3. No tax on winnings
The ATO explicitly states: "By law, gambling winnings are generally not included in taxable income." - Australian Taxation Office.
2. When winnings need to be declared
1. Continuous professional activity
Regular big wins, if you keep records of bets as a business, buy information about matches, use analysis software.
2. Gambling as a service
If you organize bets for third parties on a paid basis, even if you play yourself, this is a business activity.
3. Additional income through rent of accounts
If you get a percentage of other players' bets on your accounts, the ATO will treat it as professional income.
3. Reporting and evidence
1. Save statements
Casino statements in AUD: deposit, bet amounts and winnings.
2. Keep a log
Date, game, bet, win: simple table or CSV export.
3. Verification documents
Save copies of letters from the casino about large payments and confirmation of transactions through PayID/Osko.
4. Filing a declaration
If you are a professional, include net income (winnings minus bets and fees) in the "Business Income" section of your tax return.
4. Exceptions and nuances
Interest on winnings: if you leave money in a casino account and receive interest (rarely), this is already investment income.
Gift points and perks: No-vager bonus credits count as winnings before conversion to real money.
International casinos: The ATO does not distinguish between Curacao, MGA or UKGC - it matters where you are tax resident.
5. Practical recommendations
1. Play smart
One-time promotions and freespins without a wager are a safe "hobby" format.
2. Don't position yourself as a professional
Avoid paid strategies and public statements about betting revenue.
3. Reserve fund
Designate a separate bank account or eWallet for winnings so as not to mix with regular finances.
4. Consultation with accountant
If in doubt, consult an ATO-approved tax agent.
Conclusion
For most Australian gamblers, AUD winnings from online casinos remain under the radar of the Internal Revenue Service and do not require a return. However, with regular or "professional" gaming activity, the ATO may require that net income be included in taxable income. A clear record of transactions, a betting log and consultation with a qualified tax agent will help you avoid trouble and save your winnings.
