Sponsored

Australia?s Taxation Laws on Gambling

Gambling is a popular pastime for the people of Australia. They can play their favourite casino games at brick and mortar casinos or many of the Australian operated online casinos. Many pubs and clubs around the country also feature various gambling games. In Australia, gambling is not regulated by the federal government but instead the governments of the states and territories.

When someone wins money from gambling in Australia, the winnings are not taxed. This is a bit different than the common taxation practices followed by other nations of the world. There are three main reasons for Australia’s lack of taxation on casino winnings. First of all, gambling is considered to be a recreational activity rather than a profession. Second, winning money through gambling is seen not as income per se but simply the result of good fortune. The final reason for this stance is that the government instead chooses to tax the gambling operators. After all, this is their profession and they are the ones in the business of it to make money.

The exact manner in which gambling operators are taxed varies from state to state. Also, depending upon the type of gambling service, the method of taxation is different. Taxes are also based on turnover, player loss as well as net profit. Taxes on player loss are done on a wide range of gambling activities. For this reason, some gambling entities offer games with high payout rates to avoid this tax. For this reason, Australian casinos such as Lucky Nugget and other gambling services offer some of the most appealing payouts anywhere in the world. Fees are also assessed by the states in order for the gambling operators to maintain their licensure. These license fees apply specifically to casinos, poker machines, lotteries, racing, bookmakers, sports betting and minor forms of gambling such as bingo and raffles.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →

Our Partners

Top Ten Most Read