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Powerball draw 1445: The tax loophole you need to know about if you win $150m

Powerball draw 1445: The tax loophole you need to know about if you win $150m
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Read Time:1 Minute, 42 Second

UPDATE: The $150 million winning Powerball numbers you need to know

With a huge $150 million up for grabs in tonight’s Powerball draw 1445, it’s no wonder around half of Australia’s adults are expected to buy a ticket.

The jackpot is the second-biggest the country has ever seen and comes after five weeks of no division one winning entries.

For more Lifestyle related news and videos check out Lifestyle >>

But have you ever wondered whether you will have to pay tax on your Powerball millions if you were to win?

While lottery prizes — won through entries with Golden Casket, NSW Lotteries, Tatts, Tatts NT and SA Lotteries — are classified as tax-free income in Australia, there is a sneaky loophole you need to know about.

The Lott advises that “once your prize is in a bank account, any interest earned on your prize is subject to income tax for both you and any gift recipients.”

It adds: “We strongly suggest seeking professional financial advice for major lottery wins to ensure you receive the maximum benefit from your good fortune.”

There is $150 million up for grabs in Thursday’s Powerball. Credit: AAP

How long it takes The Lott to call you after you win $150m Powerball

Lottery officials also advise that winners need to be wary of how their prize may affect other sources of income.

“If you currently receive a social security benefit from Centrelink, your prize may affect your entitlement,” it says.

“This will be dependent on the amount of your prize and the current value of your assets.”

If you’re concerned about your gambling or the gambling of a friend or family member, log on to Gambling Help Online or make contact via phone on 1800 858 858.

You can access online counselling as well as services in your state or territory and support for family and friends.

Powerball prize soars to $150 million – but how fair is the draw?

How long you’ll have to wait to receive your $100m if you win Powerball tonight

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