Written by the ATO|
Questions and Answers
A raffle is a game of chance where the prizes are either goods or cash or a combination of the two. Where the prize is cash only the charity must be careful that they do not contravene state lottery laws. A supply of a raffle that contravenes the state lottery laws will not be GST free.
Raffles or bingo run by charities will be GST-free if conducting the raffle or bingo does not contravene a State or Territory law. Where a breach of the State or Territory law occurs in a tax period a supply of a raffle ticket or bingo by a charity will be a taxable supply.
In certain circumstances the relevant State or Territory authority, eg the Office of Lotteries in NSW may exercise its discretion to ignore such a breach because of its minor or unintended nature. As a result the raffle does not contravene the State law. In this case the supply would be GST-free. The ATO cannot comment on how a State or Territory will interpret or apply its laws.
The ATO does not plan to issue any regulations with respect to raffles and bingo run by charities at this time.
Supplies of raffles and bingo by charitable institutions are GST-free if they do not contravene State or Territory law. Generally, when activities require the purchase of a ticket and are liable to chance then they will be considered GST-free. These types of activities will be the subject of regulations
For direct Internet links to more information on these types of fundraising - including any forms your group might need - follow this link to Our Community's Best of Community page.