Australia · Guide
Gambling taxes in Australia: what players and betting operators pay
Australia's betting taxes are paid by operators. Every state and territory except the Northern Territory charges a point-of-consumption tax of 15% to 25% on betting operators' net wagering revenue from customers located there, and operators also pay GST on what they keep. For players, the Income Tax Assessment Act disregards capital gains and losses from gambling, and the ATO says you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles.
Key takeaways
- Seven of the eight states and territories tax betting operators' net wagering revenue from customers located there: 15% in NSW, Victoria, South Australia, Western Australia and Tasmania, 20% in Queensland and 25% in the ACT. The Northern Territory has no such tax.
- These point-of-consumption taxes are charged where the customer is, mostly above a tax-free threshold of between $150,000 and $1 million a year, and in NSW and Tasmania free bets count too.
- Operators also pay GST on gambling: one-eleventh of the total amounts wagered minus the total prizes paid out.
- For players, capital gains and capital losses from gambling are disregarded under section 118-37 of the Income Tax Assessment Act 1997.
- The ATO says you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles, but you must declare prizes from a draw or lottery run by your bank, building society, credit union or investment body.
The short answer
The betting taxes in Australia are paid by operators. Each state and territory except the Northern Territory charges betting operators a point-of-consumption tax on their net wagering revenue from customers located there, at 15% to 25%. Operators also pay GST on the difference between what’s wagered and what’s paid out in prizes.
For players, two things are clear: capital gains and losses from gambling are disregarded for capital gains tax, and the Australian Taxation Office says you don’t need to declare prizes won in ordinary lotteries such as lotto draws and raffles.
What players pay
Capital gains tax. Section 118-37(1)(c) of the Income Tax Assessment Act 1997 says a capital gain or capital loss you make from a CGT event relating directly to “gambling, a game or a competition with prizes” is disregarded. That cuts both ways: any capital gain from a win is disregarded, and so is any capital loss, so gambling losses can’t be offset against other capital gains.
Lotteries and prize draws. The ATO’s guidance on prizes and awards says:
- you “don’t need to declare prizes won in ordinary lotteries such as lotto draws and raffles”;
- you must declare prizes or benefits from a prize draw or lottery run by your bank, building society, credit union or investment body, such as cash, low-interest loans, holidays or cars;
- if you sell or otherwise dispose of an asset you won as a lottery prize, you must declare any capital gain.
If gambling is more than a pastime. This guide doesn’t cover people who bet on a large scale or as a business. If you’re unsure how your winnings are treated, ask the ATO or a registered tax agent.
Point-of-consumption taxes: what operators pay
Every state and the ACT now charges a point-of-consumption tax; South Australia’s dates from July 1, 2017. It’s charged where the customer is: NSW taxes net wagering revenue from bets placed in NSW, Victoria net wagering revenue from customers located in Victoria, and South Australia betting companies offering services to South Australia.
| State or territory | Rate | Rate applies since | Tax-free threshold |
|---|---|---|---|
| New South Wales | 15% | July 1, 2022 (10% from January 1, 2019) | $1 million a year |
| Victoria | 15% | July 1, 2024, set until June 30, 2027 (10% before) | $1,000,000 |
| Queensland | 20% (15% taxing rate plus 5% racing levy rate) | December 1, 2022 | $300,000 |
| South Australia | 15% | July 1, 2017 | — |
| Western Australia | 15% | — | $150,000 a year |
| ACT | 25% | July 1, 2023 (20% in 2022–23; 15% from January 1, 2019) | $150,000 |
| Tasmania | 15% | January 1, 2020 | $150,000 a year |
| Northern Territory | No point-of-consumption tax |
A dash means the regulator’s page we used doesn’t say. A few details worth knowing:
- Free bets are taxed too. Revenue NSW lists bookmaker, betting exchange and totalizator bets, lay-off bets and free bets among the bets the tax applies to, and Tasmania’s law also includes free bets.
- GST is included. Victoria calculates the tax on net wagering revenue including GST.
- Elections count. Tasmania’s law defines a bet as including any wager on events relating to “racing, sports, elections, current affairs and entertainment”.
- The ACT has the highest rate, after two increases since 2022.
GST
Gambling has its own GST rules, in Division 126 of the GST Act, which uses a “global accounting system”: an operator works out a “global GST amount” for each tax period, equal to one-eleventh of the total amounts wagered minus the total monetary prizes. If prizes exceed wagers in a period, the amount is zero. A gambling supply counts as connected with Australia if the customer is an Australian resident.
How much Australians spend
According to the Queensland Government Statistician’s Office, Australians’ expenditure on legal gambling was $32,999.0 million in 2024–25, of which $8,453.5 million was on wagering: $391.41 for every adult. Its figure for online casino games, “interactive gaming”, is zero in every state, because online casinos are banned under the Interactive Gambling Act. The federal government puts losses on legal gambling in 2023–24 at more than $32 billion, around $1,521 per adult, which it calls the highest losses per capita in the world.
If gambling is costing you more than you can afford, call the National Gambling Helpline on 1800 858 858, free and 24/7, or see our guide to gambling help in Australia.
Frequently asked questions
Do you pay capital gains tax on gambling winnings in Australia?
No. Section 118-37(1)(c) of the Income Tax Assessment Act 1997 says a capital gain or capital loss from a CGT event relating directly to gambling, a game or a competition with prizes is disregarded. That also means a gambling loss can't be used as a capital loss. If gambling is more than a pastime for you, ask the ATO or a registered tax agent how your winnings are treated.
Do I have to declare lotto winnings?
No. The ATO says you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles. You do need to declare prizes from a draw or lottery run by your bank, building society, credit union or investment body, and any capital gain if you later sell an asset you won as a lottery prize.
What is point-of-consumption tax?
A state or territory tax on a betting operator's net wagering revenue from customers located in that state or territory. NSW, for example, charges 15% on net wagering revenue from bets placed in NSW above a $1 million threshold. The operator pays it, not the punter.
Which state has the highest betting tax?
The ACT, at 25% since July 1, 2023, on net ACT betting revenue above $150,000. Queensland's rate is 20%, made up of a 15% taxing rate and a 5% racing levy rate. The Northern Territory is the only jurisdiction without a point-of-consumption tax.
Is GST charged on bets?
GST on gambling is accounted for by the operator. Under Division 126 of the GST Act, its global GST amount for a tax period is one-eleventh of the total amounts wagered minus the total monetary prizes, and zero if prizes exceed wagers.
Keep reading
Sources
We verify facts against primary sources (regulators, court records, operators’ own terms) wherever possible.
- Point of consumption tax — Revenue NSW , last updated 2026-06-11
- Wagering and betting tax current rates — State Revenue Office Victoria , updated 2026-09-29
- Betting tax: rate and threshold — Queensland Revenue Office , last updated 2026-04-27
- Betting Tax Act 2018 (Qld) — Queensland Legislation , current version; accessed 2026-10-23
- Betting Tax and Other Legislation Amendment Act 2022 (Qld), s 2 — Queensland Legislation , as made; parts 2, 4 and 5 commenced 2022-12-01
- Betting operations tax — RevenueSA , accessed 2026-10-23
- Betting tax — Government of Western Australia , last updated 2026-03-14
- Betting operations tax — ACT Revenue Office , accessed 2026-10-23
- Gaming Control Act 1993 (Tas), ss 145B and 145E — Tasmanian Legislation , current version; accessed 2026-10-23
- Australian Gambling Statistics, 41st edition (2024–25) and explanatory notes — Queensland Government Statistician's Office , 2026-08-11
- A New Tax System (Goods and Services Tax) Act 1999, Division 126 — Federal Register of Legislation , compilation of 2026-01-01
- Income Tax Assessment Act 1997, section 118-37 — Federal Register of Legislation , compilation of 2026-10-01
- Prizes and awards — Australian Taxation Office , last updated 2026-06-08; read via Internet Archive capture of 2026-09-03
- Australian Government Response to You win some, you lose more — Australian Government , May 2026 (listed by Parliament on 2026-05-12)