My husbands company has created a lotto at work as an incentive for employees. When the get a lead they have the option of entering a ticket this is then drawn once a month & the winner receives a voucher worth anywhere between $100 to $500 to spend at certain stores & apparently this is generated by the executives Flybuys??? Then once a year a “golden” ticket is drawn where there’s 1st & 2nd places. My husband won 2nd place with a winning of $15k cash. He received the money via payroll yesterday but they categorised this as a bonus so consequently this attracted tax as to which he only received $9800 out of the $15k. Question is shouldn’t this winning be tax exempt being from a raffle as such? Is the company doing this as a tax right off for their own benefit?
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3 replies
If the company pays it as a bonus, then that is what it is.
A normal raffle funds prizes from cost of tickets, so this is not a normal tax-free raffle.
All replies
If the company pays it as a bonus, then that is what it is.
A normal raffle funds prizes from cost of tickets, so this is not a normal tax-free raffle.
Hi Bruce thanks for your answer … my husband says that before the incentive started the execs told all the staff the winnings would be tax free… also the small winnings for each month aren’t taxed so it’s become a grey area possibly ????
Hi @Kjohns91099
Wow, congratulations.
A bonus paid would be included as employment income and become part of the salary and wages and is taxable.
If you need further info about employee's entitlements and how they're paid you can speak with Fair Work.
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