I seem to remember this issue being raised a number of times on here over the last 18m - 2 years. A quick search will uncover chapter and verse I believe.

The ATO is very unlikely to allow expenses for most punters because most punters lose! Can you imagine the claims being put in for losses, year in year out? 99% of punters will fall into the 'carrying on of a hobby' category as opposed to conducting a business for which there are many tests. In short, out of pocket expenses relating to your punting activities will not be allowed as an offset vrs any winnings because these winnings are not classed as taxable income generated from the carrying on of a business. Unless of course you are a 'mister X' in which case, you may attract a special tax ruling. Lucky Mister X! Once again, there is plenty on here and in the papers if you care to do a little research.

Look at it this way: If you are winning on the punt, this does not mean that you are automatically a professional. And if you ARE one of the 'lucky 2%' who do win consistently, why would you want to flag this with the ATO?? On the other hand, if you are losing overall (after deducting expenses), the ATO will not want to know about it because every other tom dick and harry punter is in the same boat - see above.

The key objective of any tax collection agency is to collect taxes on behalf of the government. They are not in the business of paying out an avalanche of refunds. How could they be.. how would the bills get paid? Death and taxes - same as it ever was!

Cheers LG

__________________
The trick isn't finding profitable angles, it's finding ones you will bet through the ups and downs - UB