Private ruling: Assessable Income
Date of advice: 1 November 2018
Published: January 2019
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you carrying on a business of gambling? | A1: No. | Q2: Is the money you receive from gambling, assessable under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A2: No. Having considered your circumstances and the relevant business indicators contained in Taxation Ruling TR 97/11, the Commissioner does not consider you to be carrying on a business of gambling. Therefore, the money you received from gambling is not included in your assessable income. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au.

Relevant facts and circumstances: During this period you were not employed but actively seeking employment. You lived in rented accommodation. You earned an amount of money through gambling. You gambled with friends’ occasionally for 4-5 hours at a time. You gambled at a local casino, once a week for 2-12 hours. You travelled interstate on three occasions to visit friends and gamble. You travelled overseas on three occasions to visit friends and gamble. You had to pay an entry fee to gamble. You used cash on hand to pay the entry fees. You paid for all expenses incurred in gambling using personal funds and did not separate money or allocate money specifically for gambling. You did not keep records of your winnings or losses. You cannot provide any indication of the stakes held because the stakes significantly varied from a few dollars to thousands of dollars on occasions. You did not study or train in gambling or utilise any programs, tools or tactics other than your own skills. Since mid-late 2016 you have not gambled on a regular basis. You are currently self-employed.

Relevant legislative provisions: 6-5 of the Income Tax Assessment Act 1997