Australia: tax on lottery prizes
Lottery prizes are not taxed in Australia: an A$1,000,000 Powerball prize is paid in full, and it does not go on a tax return. Only what the money earns afterwards is taxed.
How the tax works
Lottery winnings are a windfall, not income, for the Australian Taxation Office: they are paid in full and not taxed. Interest, rent, dividends and capital gains earned on the money afterwards are taxable.
Games covered: Powerball, Oz Lotto, Saturday Lotto and the other lotteries.
Questions
Do you pay tax on lottery winnings in Australia?
No. The prize is paid in full and is not declared as income. Interest, dividends and other income the money earns once invested are taxed under the normal rules.
Is anything taxed after a big win?
What the money earns, and in some cases gifts made from it. Talk to a tax adviser before investing or giving away a large prize.
Rules checked on 29.09.2026; compare other countries or see the United States calculator. Estimates, not tax advice.
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