I am interested in finding out the tax implications of having won Lotto four and a half years ago, and having invested part of the winnings on property (in my name) as future gifts for my daughters, which I now want to pass on to my daughters as they reach age 40.
Hi @Wananavu
The initial lotto winnings won't be taxable (provided you're not running a business of lotto investments). The property will still be liable for capital gains tax on the change in value. This means the increase in value will be liable for capital gains tax when your sell the property, or when you transfer it to your children.
For the stamp duty, that's a state government question to ask. For the Centrelink assets part, that's something Centrelink would have to answer.
You can read about transferring property to family or friends on our website.
Lotto wins are called in tax speak "windfall gains" and are not taxable, providing you are not buying lottery tickets as a business.
Thanks Mike.
My main concern is that after the Lotto win four and a half years ago, I purchased the property for my daughter but the title is in my name, as safekeeping. She resides there. Now that she is over 40, I want to transfer the property to her. Do I have to pay stamp duty again. Will the property be counted as deprived asset by Centrelink?
Hi @Wananavu
The initial lotto winnings won't be taxable (provided you're not running a business of lotto investments). The property will still be liable for capital gains tax on the change in value. This means the increase in value will be liable for capital gains tax when your sell the property, or when you transfer it to your children.
For the stamp duty, that's a state government question to ask. For the Centrelink assets part, that's something Centrelink would have to answer.
You can read about transferring property to family or friends on our website.
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