Originally Posted by UselessBettor

Technically trading betfair also requires you to pay tax as it is no longer a form of gambling. Chrome Prince went into it a while back and if the tax office decided to follow up on your technique and they found you to be trading you would be required to pay tax on the profit.

Trading is not a form of gambling.

For instance :

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A recent decision by the Australian Tax Office (ATO) has cast doubt on whether the profits of spread betting are free from income tax.

Spread betting involves placing a bet with a licensed bookmaker that a stock or commodity will rise or fall in value. It does not involve the purchase of the stock or commodity but is a 'wagering contract'. The profits of spread betting (if any) are gambling winnings and are exempt from income tax.

On 12 March 2010, the ATO published interpretive Decision 2010/56, in which it determined that the proceeds of spread betting were taxable income. The ATO emphasised that, in Australia. spread betting is governed by a separate statutory regime from other gambling activities.

The ATO stated that “transacting with financial spread betting is closer to the skill end of the chance-to-skill spectrum and the commercial and of the private/recreation-to-commercial spectrum
than a bet on horse racing.
The winnings tend to be rewards for skill and judgment rather than purely betting on chance.‘

The taxpayer, the ATO found, was engaged in a taxable business.

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The important part of this is "The winnings tend to be rewards for skill and judgment rather than purely betting on chance."

The ATO could say trading is a skill and the winnings are rewards for reading the market which is the same as trading the share market.


In reality though your probably not going to have to pay tax.