Quote:
Originally Posted by SwoopAE
Unless you are what the ATO defines as a poker pro which is basically undefinable the answer is no afaik but you do have to declare interest on your bank accounts/investments etc that includes money won from poker
The tax code clearly states gambling winnings are exempt from taxes except if you're a professional gambler and unless you employ people to bet for you then you're probably okay, especially if you have any income other than poker
Obviously everything I say is to the best of my understanding, not a tax lawyer etc.
This is not quite right, I'm afraid.
The Tax Act does not mention gambling - and it certainly doesn't say gambling winnings aren't taxable. It simply provides that income is taxable, and doesn't define income. The cases have held that earnings derived from the operation of a business is income - and thus the question is simply whether someone's gambling constitutes a business.
The ATO treats poker quite differently from other forms of gambling (and is more likely to treat poker winnings as taxable income). The best insight into the way the ATO looks at it is probably the reasoning process in a private binding ruling issued to a poker player. Have a look at:
http://www.ato.gov.au/rba/content/?f...1372160223.htm
The critical part of the conclusion is probably as follows:
"You have a certain degree of sophistication using computer software, your winnings are significant in relation to your financial status and on a chance to skill matrix, successful poker playing may be seen to be dependent more on skill than on chance, which you and other noted players have demonstrated by consistently winning over many years.
However, the indicator contributing the most weight is the impression you primarily play poker for profit rather than pleasure. You have a dependent family and significant financial obligations regarding investments and borrowings. Your leaving your income earning activities as your profits increased gives the impression poker playing is an income substitute or your primary income earning activity, rather than being a hobby or a pastime.
Instead of your playing for money being an irregular activity, including playing the occasional tournament, the impression gained his your poker playing is on a regular or daily basis, in a similar manner to an employee or businessperson who attend their employment or business on a daily basis.
It follows, for the relevant income years, you were/are carrying on a business of poker playing and your income from poker playing is assessable and your expenses incurred in poker playing are deductible."
On the basis of that, it seems to me that if you play poker as a means of earning the money you need to live, then you are a professional and the tax office will treat your net winnings as taxable.