Bill,

My wife is an accountant but does not specialise in taxation and I also studying accounting and some tax law at University. It is my understanding that ALL gambling winnings (regardless of whether they are racing, casino, lotteries, etc) are tax free. The government taxes the gambling provider (TAB, Casino, etc) on turnover and on profit so it gets more than it's share in that way!

The courts tend to take a dim view of Tax Department trying to tax one person on income derived from a given enterprise but not allowing others doing the same thing to claim losses so I doubt that they would try as it might open the floodgates to all losing punters claiming their losses!

As I said I'm not an expert but I have never heard of a punter being taxed. Of course if you offer a tipping service or sell tips, programs, books, etc then that is a different matter.

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