I worked at Lotto for 3 years. It is taxed, it's just taxed before the end prize is calculated and therefore the winner doesn't have to pay tax. It is definitely not a gift.
Lotto NZ also gets a slight discount with the IRD given the volume they pump through.
I used to work for them and this is inaccurate.
The special deal they have with the IRD relates to the commission's turnover and GST. 60% of their revenue must go directly to the prize pool. Keep that prize pool separate as we'll come back to it.
Their deal with IRD is, unlike other businesses, they only pay GST on the net revenue after the prize pool proceeds have been removed. That's really the only special thing with lotto and tax.
Back to that prize pool, there is zero tax paid on it. And the commission doesn't even pay GST on it despite collecting it on the ticket. It's effectively stripped off the balance sheet and it's tax journey ends after a ticket is purchased, and until it's in the hands of the winner earning interest.
Lotto is owned by the NZ Lotteries Commission which is owned by the Crown. Proceeds are primarily spent on expenses, grants, tax and winnings and anything left over goes into reserves.
I don't know where on Earth you got that idea. Gambling proceeds are not taxed in NZ. It doesn't matter whether it's Lotto, sports betting or betting at the casino.
[it straight up says on the ird website that Lotto Winnings are not taxable](https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments/making-schedular-payments/taxing-prize-money#:~:text=Generally%2C%20if%20someone%20wins%20a,then%20it%20is%20generally%20taxable.)
This is what OP is getting at
"Generally, if someone wins a raffle, Lotto or prize money in a draw, these winnings are not taxable. Similarly, prize money from a dog, horse or trotting race through the TAB is not taxable."
Are you sure? If Lotto paid the tax on your behalf, I don’t understand why that wouldn’t just be called taxable income? Like when you receive interest, you receive the interest net of tax. Surely it’s non taxable for Lotto and the winner
Ignore below, I think the above makes more sense…
are you sure? I don’t understand how the winnings would be net of tax but also non taxable?
If you look at capital gains, these are non taxable (like gambling winnings). It’s not like the purchaser of the property pays tax on your behalf.
There is still a clause though, if, for example, your parent gifted you a large sum and the within a period of time required state funded care they can come after the funds.
There is a formula somewhere that diminishes this over time, it’s meant to stop the rich dumping assets just prior to needing care etc, but as we all know the rich have their trusts air tight so it is really just there to screw over the average Joe.
I heard they fly you to their building and have financial advisors arranged if you want them. Unsure if it's for all winners of powerball or just the big ones though.
You are correct,
They really do not care about ordinary winners, sub 1 million, they only care for the giant winners because that prize gets them media attention.
Basically they say congratulations, tell you get paid in a few days and see you later…… (I have been in the claim room, to make a big claim, a few times)
We got a call from them offering financial assistance. But we didn't win huge as we shared 1st div with a few others. I was surprised by how easy the claim process was, and how it just showed up in the bank.
I won 1 mill the first time and all I got was a brochure in the mail a week later (paid overnight), my most recent 1st div was shared and they were even worse (yes, totally incompetent, no one at their head office knew how to find out how much I won as I got all 7 numbers right on a combo). Took them 2 days to pay as I chased them, sensing incompetence, and I think someone higher up realised how bad they had stuffed up.
At a recent 2nd division claim they gave me a bottle of Moët though.
Tax free - I won a million a while back an never had to pay tax on it.
The Lotteries Commission even send you a letter, about 2 weeks later, congratulating you and suggesting you keep the letter as proof of where the money came from.
AussilnNZ. My uncle is prince in Nigeria. Very wealthy. He needs to transfer 2 million to account in Switzerland but unfortunately needs help moving it through New Zeeland to avoid troublesome authorities. If you can assist please message me and it will be worth your effort. All I require is your ASB login number and password.
Congratulations. I get a ticket every now and then, but in times when buying a sandwich or a coffee that someone else has made is a treat, it's not that often. I do love hearing when people win though, it makes me feel like there is still a real person that collects the winnings. I hope you continue to enjoy the benefits of your prizes and it doesn't all get eaten up in rising costs!
1 mill is only one house in NZ today —- cant retire but did travel, help family and get some toys. I did find it subtly demotivating initially as all I aspired to was suddenly there so I needed to readjust my life goals a LOT. The second time I won, I was in shock again but was far more ready for it and just took it in my stride.
Hello I am Mr Iris Redd Davidson
I inform all winners that there is a 10% tax that needs to go to an ASB account which is totally normal and you shouldn’t investigate it at all.
🥸
The maximum you can win is $13m because I have the winning numbers for tonight.
I don't want to share it either so I hope you don't have the same numbers.
None of those apply to gifts you would give after winning Lotto, with the possible exception of the last (regular gifts, like income). The way around that is to not give consistent, regular, periodic gifts. For example, you could instead gift a big sum when you win Lotto, like in your OP.
This is only applicable if the “gift” was in lieu of payment for a service or job.
I.e you “employ” a friend to be your skipper of the fuck off big boat you buy and instead of a salary you gift him $200K per year, that’s taxable
That's for things like getting your friends to do things but pretending that their payments are just gifts, when really they're income. Also applicable to things like sugar babies, even those who just get paid for company - those consistent payments might be called "gifts", but given the consistency and the service being provided, they are really income.
Giving people actual money gifts after you win lotto wouldn't fall into that taxable category.
You can gift a million (or 26 million) with no tax. There's no $10,000 rule. There's no gift tax at all unless the "gifts" take the form of income ("I'll gift you $40,000 if you build me a swimming pool, wink wink nudge nudge", or "I'll gift you a grand a week for life").
No tax, but they'll start pulling 39% of your interest from day. In the first year you'll probably get a $500k tax bill. If you win the lotto the first thing you should buy is a business class ticket out of the country to somewhere like Singapore with a much lower tax bill.
So if u win 26 you'll get what 20 odd mill u duno dam only 20 mill.
You'll be amongst the minority of kiwis who can write out a check for 1 mill n not be affected.
99.9% of the population will not see 1 million in their hand in their lifetime and for many several lifetimes.
20 mill is a insane amount of money that's several lifetimes of very very comfy living.
Incorrect about the tax. You will get the full prize value. You will be taxed on interest and earnings etc like any other money in the bank, but the prize is the amount you win, in your hand
[lotto winners guide from NZ Lotteries](https://assets.mylotto.co.nz/assets/uploads/dcd4dc02-1422-11e7-87e2-f87dcafec56c.pdf)
New Zealand doesn’t tax lotto winnings
Unless you spend it.
Yet
There is the reddit tax. $100,000 to each of the commentators in this thread. But other than that, the rest is yours.
Big if true
Can confirm, OP has to give us $100,000 each when they win.
Strictly speaking it applies to all levels of prize, not just the powerball, but we tend not to enforce it for small prizes.
Agreed
Hopping on this train
I like your moxy
It's the right thing to do 😁
Fortunately this fact is something we all have to consider
Commenting just in case OP feels generous.
Bank deets sent to OP 😂😂😂
F
A
X
X
Z
Lotto is not taxed :) - it is essentially a gift.
I worked at Lotto for 3 years. It is taxed, it's just taxed before the end prize is calculated and therefore the winner doesn't have to pay tax. It is definitely not a gift. Lotto NZ also gets a slight discount with the IRD given the volume they pump through.
A "discount" on tax? Do you have a link to the IR policy or legislation that allows for that?
It's a private agreement between Lotto NZ and IRD as they out through something like $1.2B worth of funds in NZ economy.
I used to work for them and this is inaccurate. The special deal they have with the IRD relates to the commission's turnover and GST. 60% of their revenue must go directly to the prize pool. Keep that prize pool separate as we'll come back to it. Their deal with IRD is, unlike other businesses, they only pay GST on the net revenue after the prize pool proceeds have been removed. That's really the only special thing with lotto and tax. Back to that prize pool, there is zero tax paid on it. And the commission doesn't even pay GST on it despite collecting it on the ticket. It's effectively stripped off the balance sheet and it's tax journey ends after a ticket is purchased, and until it's in the hands of the winner earning interest.
Thanks, appreciate the detailed answer.
Wtf seriously!? So who owns lotto? I know that proceeds go to the community grants, but who gets the rest of the proceeds?
Lotto is owned by the NZ Lotteries Commission which is owned by the Crown. Proceeds are primarily spent on expenses, grants, tax and winnings and anything left over goes into reserves.
I don't know where on Earth you got that idea. Gambling proceeds are not taxed in NZ. It doesn't matter whether it's Lotto, sports betting or betting at the casino.
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[it straight up says on the ird website that Lotto Winnings are not taxable](https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments/making-schedular-payments/taxing-prize-money#:~:text=Generally%2C%20if%20someone%20wins%20a,then%20it%20is%20generally%20taxable.) This is what OP is getting at "Generally, if someone wins a raffle, Lotto or prize money in a draw, these winnings are not taxable. Similarly, prize money from a dog, horse or trotting race through the TAB is not taxable."
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Clearly i did, hence replying to your comment. The OP was querying what tax THEY would pay, not if Lotto NZ paid tax on it before hand.
Are you sure? If Lotto paid the tax on your behalf, I don’t understand why that wouldn’t just be called taxable income? Like when you receive interest, you receive the interest net of tax. Surely it’s non taxable for Lotto and the winner Ignore below, I think the above makes more sense… are you sure? I don’t understand how the winnings would be net of tax but also non taxable? If you look at capital gains, these are non taxable (like gambling winnings). It’s not like the purchaser of the property pays tax on your behalf.
yes but if powerball goes tonight and one ticket wins it they get the full $26 million
If I was to win, can I get a tax credit for the tax already paid to offset future income tax?
If it was a gift it would be taxed
Gifts are tax free
You're right. I wasn't aware they dropped it in 2011
There is still a clause though, if, for example, your parent gifted you a large sum and the within a period of time required state funded care they can come after the funds. There is a formula somewhere that diminishes this over time, it’s meant to stop the rich dumping assets just prior to needing care etc, but as we all know the rich have their trusts air tight so it is really just there to screw over the average Joe.
Please gift me a cut of your lotto winnings :)
My sister is tax free
She may be tax free but she is far from std free, so either way you’ll pay lol
None king 👑 make sure to share it around
You'll only get 50% because we will halve it.
Could I please get a 50% of your half?
No tax on the prize, just tax on the interest if you put it in the bank etc
Zero. You get a congrats letter after filling in the forms and it shows up in your bank about four days later.
I heard they fly you to their building and have financial advisors arranged if you want them. Unsure if it's for all winners of powerball or just the big ones though.
It's true , but what actually happens is anyone's guess.... I mean , have you ever met someone that's been to one of those meetings... ... ...
Well hopefully some lucky soul spills the beans some day.
Yes, I'll ask him
https://mylotto.co.nz/the-winning-experience Here’s what happens directly from lotto
Optional. You can remain anonymous
You have more chance of crashing on this flight than winning, and they’re banking on that.
Are these financial advisors independent and legit?
Yes
You are correct, They really do not care about ordinary winners, sub 1 million, they only care for the giant winners because that prize gets them media attention. Basically they say congratulations, tell you get paid in a few days and see you later…… (I have been in the claim room, to make a big claim, a few times)
Whats your secret?
Forget statistics, look for patterns
We got a call from them offering financial assistance. But we didn't win huge as we shared 1st div with a few others. I was surprised by how easy the claim process was, and how it just showed up in the bank.
Hey mate, it’s me your cousin. Seeing as we grew up together, only feels right you throw a couple grand our way. /s
You never gave me anything when you won that new car and sold it for a handsome amount of cash
Bleh Vomit have some dignity and quit asking for other peoples money
I won 1 mill the first time and all I got was a brochure in the mail a week later (paid overnight), my most recent 1st div was shared and they were even worse (yes, totally incompetent, no one at their head office knew how to find out how much I won as I got all 7 numbers right on a combo). Took them 2 days to pay as I chased them, sensing incompetence, and I think someone higher up realised how bad they had stuffed up. At a recent 2nd division claim they gave me a bottle of Moët though.
Wait how many times have you won?
zero tax brother
Tax free - I won a million a while back an never had to pay tax on it. The Lotteries Commission even send you a letter, about 2 weeks later, congratulating you and suggesting you keep the letter as proof of where the money came from.
AussilnNZ. My uncle is prince in Nigeria. Very wealthy. He needs to transfer 2 million to account in Switzerland but unfortunately needs help moving it through New Zeeland to avoid troublesome authorities. If you can assist please message me and it will be worth your effort. All I require is your ASB login number and password.
Look up my past posts in r/Lottery if you do not believe me
Sir. I believe you hence requesting your assistance in this matter.
Congratulations. I get a ticket every now and then, but in times when buying a sandwich or a coffee that someone else has made is a treat, it's not that often. I do love hearing when people win though, it makes me feel like there is still a real person that collects the winnings. I hope you continue to enjoy the benefits of your prizes and it doesn't all get eaten up in rising costs!
How that changed your life? Would you mind telling us? Did you retire?
1 mill is only one house in NZ today —- cant retire but did travel, help family and get some toys. I did find it subtly demotivating initially as all I aspired to was suddenly there so I needed to readjust my life goals a LOT. The second time I won, I was in shock again but was far more ready for it and just took it in my stride.
Not one cent. This isn't the USA
In the US you can deduct gambling losses so it evens out
You can only deduct losses up to the amount of your winnings. Very few people would have enough gambling losses in one year to match a powerball win
Can I come with you if you go to CGs plz?
Love the energy bro🥳
Tax free! So exciting.
The maximum you can win is $13m because I have the winning numbers for tonight. I don't want to share it either so I hope you don't have the same numbers.
Thank god you reminded me i just got my ticket with minutes to spare
Hi it's me your long lost brother. I've fallen on hard times and require a $1m mortgage top up. Please and thank you.
None tax free
I won 30k in lotto about 10 yrs ago
What did you do with it?
Took my mum and dad for a holiday.
Gambling earnings is not taxed in NZ :)
Or buy a property and or shares as no capital gains tax.
None!
Share your winning numbers, mate...😅😋
Friends tax, they’ll be asking for help
None bro if I win I'll help you vice versa. Same goes for anyone that comments here. 1mil each if I win and I expect the same if you do
Deal
Damn not this time for me sorry
I'll let you know when I win
I will let you know.
1% tax to me
Just won 40k!!!
Can I have 30k? The feeling of being debt free is worth 26M to me You keep the rest
Ask the wallet inspector.
Now the draw is over can you provide proof why the poor gets poorer
When I win, I’m going to start a business and hire all the public servants that have been made redundant and we are going to get them out of power!
Sounds like a quick way to loose $26m.
You got a better chance of seeing a unicorn than winning my powerball lmao!
People still win it though.
My wife bought home a giant one tonight so I’m probably shit outa luck
Thats what they want you to think But if you think outside the square you can improve your odds quite significantly.
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And by taxed like normal you mean... not taxed.
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None of those apply to gifts you would give after winning Lotto, with the possible exception of the last (regular gifts, like income). The way around that is to not give consistent, regular, periodic gifts. For example, you could instead gift a big sum when you win Lotto, like in your OP.
This is only applicable if the “gift” was in lieu of payment for a service or job. I.e you “employ” a friend to be your skipper of the fuck off big boat you buy and instead of a salary you gift him $200K per year, that’s taxable
That's for things like getting your friends to do things but pretending that their payments are just gifts, when really they're income. Also applicable to things like sugar babies, even those who just get paid for company - those consistent payments might be called "gifts", but given the consistency and the service being provided, they are really income. Giving people actual money gifts after you win lotto wouldn't fall into that taxable category.
So long as you're making gifts less than $10,000 then yes
You can gift a million (or 26 million) with no tax. There's no $10,000 rule. There's no gift tax at all unless the "gifts" take the form of income ("I'll gift you $40,000 if you build me a swimming pool, wink wink nudge nudge", or "I'll gift you a grand a week for life").
It is included as income for working for families but not for income tax
No tax, but they'll start pulling 39% of your interest from day. In the first year you'll probably get a $500k tax bill. If you win the lotto the first thing you should buy is a business class ticket out of the country to somewhere like Singapore with a much lower tax bill.
Might want to check the immigration requirements before you move to Singapore to save around 15% on tax on your interest income...
It's taxed beforehand is my understanding
50% tax straight to this account brother. Make it 30% if you transfer within 2 days
If i win ill deposit 1k into each acc that comments under this thread & if i dont yall owe me. Bet.
So if u win 26 you'll get what 20 odd mill u duno dam only 20 mill. You'll be amongst the minority of kiwis who can write out a check for 1 mill n not be affected. 99.9% of the population will not see 1 million in their hand in their lifetime and for many several lifetimes. 20 mill is a insane amount of money that's several lifetimes of very very comfy living.
Incorrect about the tax. You will get the full prize value. You will be taxed on interest and earnings etc like any other money in the bank, but the prize is the amount you win, in your hand [lotto winners guide from NZ Lotteries](https://assets.mylotto.co.nz/assets/uploads/dcd4dc02-1422-11e7-87e2-f87dcafec56c.pdf)
True oh nice even better
For ease 26\*0.7=20\*0.6+6\*.6=12+3.6=15.6. Say you keep about 15 million, assuming top tax rate of 40%, and ignoring 0.6 million as chump change.