Back to All

Australian Lottery Tax: What You Need to Know About Australian Lotto Winnings

Winning the lottery is an exciting moment, but it’s important to understand the tax implications before making any big financial decisions. Unlike in some other countries, Australia has a unique approach to taxing lottery winnings. Here’s a breakdown of what you need to know about Australian lottery tax and how it affects your windfall.

Are Australian Lotto Winnings Taxed?

The good news for Aussie lotto winners is that lottery winnings in Australia are tax-free. The Australian Taxation Office (ATO) does not consider lottery prizes as taxable income, meaning you get to keep every dollar of your winnings, whether it’s $20 or $200 million!

What About Winnings from Overseas Lotteries?

If you purchase tickets through The Lottery Office, which buys matching tickets in international lotteries, some winnings may be subject to foreign taxes. Here’s what you need to know about taxation on overseas lotto winnings:

  • USA Power Lotto (matched to US Powerball): A 30% federal tax applies to winnings over $600 USD, with an additional 8% state tax for winnings over $1,500 USD.
  • USA Mega Lotto (matched to US Mega Millions): The same tax rules apply as for Powerball—30% federal tax and 8% state tax over certain thresholds.
  • Italian Super Jackpot (matched to SuperEnalotto): Winnings over €500 are taxed at 20%.
  • La Primitiva (matched to Spain’s La Primitiva): A 20% tax applies to winnings exceeding €40,000.
  • UK Lotto, Irish Lotto, European Millions, European Jackpot: No taxes apply.

If you win through The Lottery Office, any required foreign taxes are deducted by the lottery operators before we collect the matching foreign lottery wins. You are paid the exact same amount that we collect.

Woman holding australian money

Managing Large Winnings from the Australian Lotto

Even though Australian lottery tax does not apply to your initial winnings, managing your newfound wealth wisely is essential. Here are some key steps:

  • Seek Financial Advice: A financial advisor can help you create a long-term wealth management strategy, invest wisely, and understand potential taxes on any income generated from your winnings.
  • Protect Your Privacy: The Lottery Office allows winners to remain anonymous, helping to maintain security and privacy.
  • Consider Estate Planning: Updating your will ensures your winnings are distributed according to your wishes.

Conclusion

Australia’s tax laws are favourable for lotto winners, as there is no Australian lottery tax on winnings themselves. Staying informed and consulting financial experts can help you make the most of your winnings and secure your financial future.

  1. Home
  2. Blog
  3. Australian Lottery Tax: What You Need to Know About Australian Lotto Winnings

Share this via:

Is it all tax-free?

Taxes. An unavoidable part of life. All winnings with us are free from Aussie and NZ taxes, but what about the prize money we collect from overseas? Is it all tax-free?

US Powerball and US Mega Millions

Looking to get US lottery tickets online? The Lottery Office lets players buy tickets matched to world-record-breaking lotteries US Powerball and US Mega Millions.

Lotto syndicates

Lotto syndicates give players the chance to boost their buying power by sharing the cost with other players. How do they work? We give you all the details so you can join in the fun!