Australia Prediction Market Taxes

How Australia Taxes Prediction Markets

Australia does not have specific legislation for prediction markets, so the tax treatment depends on how your activity is classified. Multiple approaches may be defensible.

Our calculator compares the available treatments side-by-side so you can see the exact dollar difference and make an informed decision with your tax advisor.

How to File

1. Log in to myTax via myGov (my.gov.au).
2. Report capital gains at Item 18 (Capital gains).
3. Apply the 50% CGT discount if held for more than 12 months.
4. Convert USD to AUD using RBA rate on settlement date.
5. Australian tax year runs July 1 to June 30.
6. File by October 31 (or later with a registered tax agent).

Filing deadline: October 31

How are prediction markets taxed in Australia?

The ATO treats most prediction market activity as either capital gains or gambling. Capital gains are added to your taxable income at marginal rates. Recreational gambling winnings are tax-free.

What is the 50% CGT discount?

If you hold an asset for more than 12 months, only 50% of the capital gain is included in your taxable income. Most prediction market trades are short-term, so this rarely applies.

When is the Australian tax year?

July 1 to June 30. So the 2024-25 tax year runs from July 1, 2024 to June 30, 2025.

Are gambling winnings tax-free in Australia?

Generally yes, for recreational gamblers. If the ATO considers your activity to be a business or systematic profit-making scheme, gains may be taxable.