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Edited version of private advice
Authorisation Number: 1052380442124
Date of advice: 09 May 2025
Ruling
Subject: Annual turnover
Question 1
For the purpose calculating the Company's annual turnover in accordance with section 328-120 of the Income Tax Assessment Act 1997, should it include the excesses from its betting activities rather than the total of winning bet returns?
Answer 1
Yes. The Company should include the excesses from its betting activities rather than the total of winning bet returns in determining its annual turnover as it undertakes its betting activities in the ordinary course of carrying on its business, to gain an overall profit.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XY
The scheme commences on:
20XX
Relevant facts and circumstances
The Company's income is generated from more than one primary source including excesses from professional betting activities.
The Company's revenues are derived as the product of a business enterprise conducted by the Company in which a systematic method is applied with the expectation of generating an overall profit.
The Company has provided details of its betting activities.
Relevant legislative provisions
Income Tax Assessment Act 1997, subsection 6-5(1)
Income Tax Assessment Act 1997, section 152-10
Income Tax Assessment Act 1997, section 328-120
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