ATO Individual Tax Return

The ATO (Australian Taxation Office) Individual Tax Return is the annual return filed by Australian residents to report all sources of income, deductions, and tax offsets. Prediction market gains are reported either as capital gains or as assessable income depending on classification.

Where to report prediction market income

• Capital gains: Reported at Item 18 (Capital gains) of the Individual Tax Return. Complete the CGT schedule with details of each disposal.
• Business income: If the ATO considers you a professional trader, report at Item 15 (Net income or loss from business).
• Gambling: If classified as recreational gambling, gains are generally not assessable and not reported.

Filing via myTax

Most individual Australians file through myTax, the ATO's online lodgment service accessible via myGov. Tax agents can also lodge on your behalf. The deadline is generally October 31 for self-lodgment, with extensions available through registered tax agents.

Foreign income considerations

Since most prediction market platforms are U.S.-based, Australian traders must report this as foreign-sourced income. Foreign tax credits may be available if U.S. tax was withheld, though this is uncommon for prediction market platforms.

ATO individual tax rates (2024–25)

Australian residents pay progressive tax on assessable income including capital gains:

• 0%: $0 – $18,200 (tax-free threshold)
• 19%: $18,201 – $45,000
• 30%: $45,001 – $135,000 (reduced from 32.5% under Stage 3 cuts)
• 37%: $135,001 – $190,000
• 45%: Above $190,000

Plus 2% Medicare levy on all taxable income. After the CGT discount (if applicable), only half the gain is added to your assessable income at these rates.

Frequently asked questions

When is the Australian tax return deadline?

October 31 for self-lodgment. If you use a registered tax agent, you may get an extension until May the following year. The Australian financial year runs July 1 to June 30 — different from the US calendar year.

Do I need to convert USD to AUD for reporting?

Yes. Use the ATO's published exchange rates for the dates of each transaction. Consistent use of either the transaction-date rate or the average annual rate is acceptable.