Australian Taxes and You – Here’s What You Need to Know About Gambling

Australia is known for having one of the highest rates of gambling in the entire world. Over 80% of Australians engage in some kind of gambling activities and 4% of the adult population choose to play on slot machines a least once a week. Traditionally, gambling has always been legislated at a state and at a territory level as opposed to the federal government.

An Insight into the History of Gambling Tax

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The winnings from gambling in Australia are not taxed at all. It’s important to know that there are a few reasons for this. Gambling is not actually recognised as being a profession in Australia. It’s known as being a hobby. The Australian government have come to some kind of agreement that the gains from gambling activity are not the result of hard work, and instead come from good luck. Even if someone is able to win big, a lot of people lose a lot at the same time. When you look at skilled or professional gamblers, such as poker players, you may find that they argue that their winnings are the result of skill and not luck. If the player does decide to go ahead and register themselves as a fully-fledged business then they may be required, in some ways to pay tax. If the player is able to collect or receive sponsorships or even endorsements, then this would be taxable. They would also have to pay tax on any other gains that they happen to make throughout their gambling career as well, so it’s important to take things like this into account. Take a look below to learn more about gambling taxation in Australia.

Who Pays the Tax when it Comes to Gambling?

So now you know why gambling is not taxed in general, it’s time to move on to who pays the tax. The main reason why the gambling industry is not taxable in terms of winnings is because the gambling providers, or casinos are taxed. The amount of tax that people pay will depend on the region where they are from. The taxes are on the turnover amount, net profit and player loss. Gambling operators have to make sure that they have some kind of license because if they don’t then they won’t be abler to offer their services. It’s the operator requirements to pay tax on the different rules and this all comes down to the forms of gambling that they offer and where they are operating. For example, if you were to look at new South Wales, you will see that electronic gaming machines range between 16.41 and 38.91%. This does however depend on the overall gross revenue. When you look at the state of Victoria however, you will soon see that the tax is 31.57-51.57%. This is from the gross gaming venue.

What are the Gambling Rules?

In Australia, the act for International Gambling basically governs the rules about online gambling. This is actually a national law and it was passed on the Australian Parliament in June 2001. The act is targeted at operators online and it makes it an offense for them to offer real money in terms of online or interactive gambling. This applies to every resident in Australia. That being said, there hasn’t been much done to try and stop the residents of Australia from spending a small fortune online. There was over $800 million spent by the year 2010 so that number is going to be even bigger now. It should also be noted that using and accessing an interactive gambling service is not actually an offense in Australia. It is permitted for companies who are based in Australia to offer their services to gambling services who do not live in the country. There are some exceptions here, with some of them being designated countries.

Since not many of them are based in Australia, there is actually a foreign transaction fee. Users are going to have to pay this if they want to make any deposit or even a withdrawal. This is of course, dependent on the method that you use and the way that you like to bank. For example, if you go through somewhere like Visa or even Mastercard then you should note that this is going to come with some sort of transaction fee. Skrill on the other hand will not charge you one at all, so you have to make sure that you are choosing the right provider and that you are also being aware of the options that are available. Of course, you also have the option of currency conversion as well. It’s important that you are aware that even some of the best casinos might not be able to offer the option for you to play by using Australian dollars.

Players and Gambling Tax

In Australia, you have to know that it’s the gambling operator that is going to charge you tax and not the players. The amount of tax that the operator is going to pay will depend on the game and not the location of the poker machine or even the casino. There is no tax for you to pay if you are an Australian player either. Even though there are only a few casinos in operation, it’s their job to try and sort out the tax so you have nothing to worry about. The only kind of fee that you might have to pay when it comes to the online casino industry is the fact that you might have to pay to withdraw your fees or you might even have to pay to deposit money if you are playing at an online casino. The more you can look into this, the better result you will have when you go ahead with your online gaming experience. If you need to know anything else, then you need to try and contact your chosen provider to find out about their terms and conditions



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