Are Online Casino Wins Taxed in Australia?
As soon as you win at an online casino, the first question that you will have in mind I, “Are online casino wins taxed in Australia? This is because you will want to know if you can keep all your rewards or you will have to forfeit some of the government.
Are online casino wins taxed in Australia?
The fastest response to that question is a big and resounding NO, online casino wins are not taxed in Australia. However just because they are not taxed in Australia does not mean that they are not taxed in other parts of the world. There are some places like the USA, France, and Spain where online casino wins will be taxed.
Why are online casino wins not taxed in Australia?
There are three main reasons why online casino wins are not taxed in Australia:
- Gambling is not recognized as a profession in Australia, but rather as a recreational activity. Therefore, the government of Australia has released that online casino wins are a result of pure luck and not hard work.
- People in online casinos will lose as much as they win, as such there is no online casino tax that is required.
- Instead of taxing the players, the government opts for taxing the service providers as they are the ones who are running the business and their profits are more or less determined.
Who is responsible for the gambling tax in Australia?
As we alluded to in our last point, it is the service providers who pay the tax instead of the player. The taxes are on the turnover amount on player loss and the net profit. That is the main reason why a gambling service provider needs to obtain a license before rendering gambling services to the player in Aus.
The gambling in Australia on the service providers’ taxes will also differ depending on where you are, take for instance the gambling in New South Wales can be between 16.41 and 38.91% of the gross revenue deepening on gross value. Whereas the taxes in Victoria can be 31.57 to 51.58% of the gaming value.
