Not sure there is a need for 'a mystery' or puzzle to be cracked here.

In my opinion, it's a relatively simple matter which sometimes gets confused because the ATO will persue a case in court from time to time where it deems to have some chance of success. The main question being..

=> Are you carrying on a business enterprise or conducting a hobby?

Assuming the latter applies as is the case for recreational punting*, there is no assessment of 'income' or gains and deductions for expenses are not allowed - makes sense given that 95%+ of run of the mill punters loose money and have heaps of potential deductions! The ATO is charged with collecting revenues(not net deductions) to fund the nation's bills, so this would make sense?

Main tests applied for running a business enterprise are:
1 Does the activity have significant commercial purpose or character?
2 Is there more than just an 'intention' to engage in business?
3 Is their a purpose - prospect of making a profit?
4 Are activities planned & organised in a business like manner?
5 Is there repetition / regularity to the activity?
6.Is it setup - operated in a similar way to a commercial business in the same industry?

OR is the activity better described as a recreational - sporting activity i.e. a hobby?

As always..
Do your own research on this topic - no advice intended!!


Cheers LG


* When it comes to the 'professional punter' (e.g. type 'wizzard' into the search function), this is an entirely different matter altogether i.e. The tests above are applied by the ATO and suggest - indicate that a business enterprise exists. Hence, net profits / gains are taxable and will be persued in court as o/s debts

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The trick isn't finding profitable angles, it's finding ones you will bet through the ups and downs - UB