The automatic 24% federal tax rate would take a $1 million payout down to $760,000, according to Powerball's tax calculator. Local income and prize taxes could bring that number down further, depending on where they live. Regardless of the final total, winners would be smart to carefully plan how to use the money.
The great thing about playing lotto in Australia is that winners can choose to remain anonymous and keep their privacy, unlike in the United States where winners don't have such a choice, and are often thrown into a media circus.
Prizes less than $1500 can be claimed at any Tatts retail outlet. Prizes $1500 and over can be paid via cheque or Electronic Funds Transfer (EFT) in person at our Head Office, or by post with a Prize Claim Form.
You're a lottery winner. Now you're probably wondering, is my prize taxable? In Australia, lottery winnings are classified as tax-free income. This includes all prizes won through Golden Casket, NSW Lotteries, Tatts, Tatts NT and SA Lotteries.
In Australia, lottery winnings are generally considered tax-free. This is because they are classified as windfall gains, which are non-assessable by the Australian Taxation Office (ATO). As a result, Australian residents who win the lottery do not need to pay income tax on their winnings.
$107 million
In 2019, an inner-city Sydney nurse became the recipient of the biggest individual prize ever won in Australian lottery history, a huge $107,575,649.08. The woman, who is in her 40s and who has remained anonymous, holds the record for Australia's biggest win.
New South Wales and Australian Capital Territory:
Lottery and Instant Scratch-Its prizes must be claimed within six years after the draw date or Instant Scratch-Its game closure date. Once six years have passed, prizes cannot be paid.
The Lottery Office is licensed in Australia and allows players to win from the draws of foreign lotteries. The Lottery Office allows players to buy tickets from The Lottery Office; the company then purchases matching tickets in the relevant overseas lottery draw.
Saving with a savings account
If your lump sum is a smaller amount or you would prefer to save your money towards certain priorities, a simple savings account might be the better option for you. Cash savings are always popular with people who want to put away a lump sum and earn interest over a long period of time.
Common opportunities might include short-term goals, such as paying down debt or building an emergency fund. Alternatively, you may be able to use these assets to support new endeavors for yourself or your children. The important thing is to tailor your plans for this newfound money to your unique priorities.
Overcoming odds of 1 in 292.2 million, Mr Castro was the sole winner of the record-breaking $2.05 billion (£1.79 billion) prize, which he won from a $2 (£1.75) Powerball ticket sold at Joe's Service Center in Altadena, California.
Largest lottery prizes in US history
$2.04 billion, Powerball, Nov. 7, 2022: Won in California. $1.586 billion, Powerball, Jan. 13, 2016: Three winners in California, Florida, and Tennessee.
Once again, no one beat the odds and won the $700 million Powerball jackpot in Saturday night's drawing.
In New South Wales and the Australian Capital Territory, players have up to six years to claim their winnings from the state lottery provider. After that time, the money goes to the state government.
If you have won the lottery and are now separating or getting divorced, you may be wondering what happens to your winnings. Under the Family Law Act 1975 (Cth), whether you are married or in a de facto relationship, lottery wins are considered property and therefore form part of the asset pool.
Lottery sales provide between 25 and 90 per cent of newsagent income and the Newsagents Association of NSW and ACT (NANA) said allowing big retailers into the market would devastate hundreds of retailers.
New South Wales Lotteries, (usually marketed and referred to as NSW Lotteries or the Lott) is a corporation owned by the Government of New South Wales in Australia.
The states with the most Powerball lottery winners are...
We compiled a list of states with the MOST Powerball jackpot winners in the history of the game. The luckiest of the lucky? That would be Indiana. The Hoosier State boasts 39 jackpot wins since 1992, when Powerball got its start.
It's important to remember that if you do receive winnings, either as a lump sum or periodic payments, you need to let Services Australia know. You can tell us about your changes online, using your Centrelink account through myGov or on your Express Plus Centrelink app.
Prizes may include cash, low-interest or interest-free loans, holidays or cars. However, you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles. If you win prizes as a game show contestant, you only declare prizes you win if you receive regular appearance fees or game-show winnings.
You can then request to withdraw your funds by direct deposit into your bank account, into a valid PayPal account, or by cheque. And yes — all Set for Life winnings are absolutely tax-free!