Congratulations! You’re a lottery winner. Now you’re probably wondering, is my prize taxable?
In Australia, lottery winnings are classified as tax-free income.
This includes all prizes won through Golden Casket, NSW Lotteries, Tatts, Tatts NT and SA Lotteries.
However, once your prize is in a bank account, any interest earned on your prize is subject to income tax for both you and any gift recipients.
If you currently receive a social security benefit from Centrelink, your prize may affect your entitlement. This will be dependent on the amount of your prize and the current value of your assets. You can find more information about this here.
We strongly suggest seeking professional financial advice for major lottery wins to ensure you receive the maximum benefit from your good fortune.