# Investment income and gambling income - treated different for tax?



## ta2693 (5 June 2007)

I just feel a little bit Strange to categorize investment income into nonexempt income and pay tax, but my gambling income into exempt income. Basically, these two activity are very similar in nature. 
I know in Hongkong investment income from shares is treated as exempt income. Is there any chance ATO will change its rule of Investment income in the future?

By the way, Can I take my house rent, financial planning course tuition fee and telephone bill as general deduction of my Investment income? I think they fit in "expenses in relation to conducting a business activity" ?


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## stoxclimber (5 June 2007)

From a revenue raising POV, the average investor makes money, but the average gambler loses money

If the ATO allowed gambling to be taxable income, it would reduce consolidated revenue
If the ATO exempted investment income, it would reduce consolidated revenue.


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## kgee (5 June 2007)

I figure ATO taxes bookies so the bookies factor in tax with the odds. Also I couldn't see the ATO wanting to tax winnings as then they would have to deduct losses.... it would provide a great scenario though you get to the end of the year see how much tax you owe and then gamble it. If you win great if you lose just deduct it from what you owe trhe tax dept


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## stoxclimber (5 June 2007)

it would be a tax deduction, not an offset


(100characterrrrrrrs)


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## insider (5 June 2007)

ta2693 said:


> I just feel a little bit Strange to categorize investment income into nonexempt income and pay tax, but my gambling income into exempt income. Basically, these two activity are very similar in nature.
> I know in Hongkong investment income from shares is treated as exempt income. Is there any chance ATO will change its rule of Investment income in the future?
> 
> By the way, Can I take my house rent, financial planning course tuition fee and telephone bill as general deduction of my Investment income? I think they fit in "expenses in relation to conducting a business activity" ?




I don't care what people say about the sharemarket but it is not gambling (meaning risky) unless you make it like that... I think that you only think that it is because you increase your risks of failure but if you wanted you could easily  reduce them... Gambling is designed for you to lose and the sharemarket isn't... That's why the sharemarket is taxed... A gamble means that you will take a risk where the chances of you losing is greater than of you winning... In shares it is just bad investing if you lose...

The government already gets  money from peoples losings so that's why they won't tax winnings... because you'll lose anyway if you keep gambling...

Is selling a used privately taxed? What about GST?


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