Do You Pay Tax on Online Casino Winnings in Australia?
There are over 80% of Aussie adult population who are online gamblers, which is the highest percentage in the world.Australia doesn’t apply tax on gambling. Reason being, placing a bet or gambling isn’t considered a profession in Australia. Some countries do consider gambling winnings as some form of income, in turn tax will be applied. This makes sense especially because some people consider themselves professional gamblers. Some gamblers are millionaires from playing World Series Poker.
Gambling is Not an Income
In Australia, gambling whether online or at land-based casinos, winnings are not taxed. If you consider yourself a professional gambler, in the eyes of the Australian government you won’t be considered as one.
Australia Online Gambling Tax Rules
The Interactive Gambling Act (2001) governs online gambling rules and laws in Australia. This is the national law that was enacted in the Australian Parliament on the 28th of June 2001. This law has made accessing and using interactive gambling services not an offence in Australia. While also permitting Australian based online casinos to offer their services to other online gamblers outside Australia. The only exception on this law is those countries that are considered “designated countries”.
Australian online gamblers benefit from not paying tax on their gambling winnings. Even, though there are not many Australian online gambling providers. Since there are a few Australian based online casinos, there is a foreign transaction fee applied for every deposit or withdrawal made. This is only dependent on the type of banking method used. For example, Mastercard and Visa normally charge a foreign transaction fee, while Skrill doesn’t charge one. Currency conversion is also an issue due to some casinos not offering the option to play in Australian dollar.
The reason why gamblers don’t pay tax on their winnings is that the online gambling operators pay the taxes. Taxation differs from region to region. Taxes are also applicable on turnover amount, on player loss and net profit. Gambling operators should obtain a license to offer their services, as well as pay certain fees during the development of the operation.