Gambling receipts are not usually assessable income, unless the gambler claims to be in the business of gambling (which he won't want to do anyway unless he makes losses!)

The Australian Tax Office is very strict about its criterion for allowing people to claim to be in the business of gambling. Apart from the criterion mentioned in the previous article on hobby income vs business income there are other criterion that apply to gamblers.

The criterion used most frequently by the courts are:

• systematic, organised and business-like conduct.

• whether the betting was done principally for profit or pleasure.

• whether the form of betting chosen was likely to reward skill and judgement, or depend on chance.

People most likely to be classified as being in the profession of gambling include bookmakers, horse breeders, trainers and owners, casino owners and staff and a few other professions.

Even if you are a highly disciplined punter and successful, it is unlikely that you would be classified as being in the profession of gambling, which would suit you perfectly well no doubt since it means your winnings are tax-free.

The only gamblers that would like to be regarded as being in the business of gambling are those that lose money consistently, and these are the types of people least likely to be granted business status by the courts, so don't try to argue that you were making a business loss when you blew all that money at the casino.

It is highly unlikely that you could ever claim to be in the gambling business if you played Lotto for example, though a professional poker or blackjack player with a penchant for money management techniques and card counting might stand a chance.