By Teresa Frangos.
Well not yet, but can’t be too far away. It’ll be great, holidays, new car, help family and friends, no worries for the future etc etc….
I do worry as you often hear about those that have won and wish they never had saying it ruined their lives, so I asked our knowledgeable financial adviser Ben Kemp a few questions that may help me (and you too if you win before me);
Me – Ben, when I win tattslotto will I be taxed on the winnings?
Ben – While tax law is a complicated beast that generally puts people to sleep, the rules around Tattslotto wins are actually simple! (generally). Unless you are in the profession of playing Tattslotto, your windfall gains will be tax-free. Woweee, I know, no tax for once!
Me – that’s great, can I share my winnings with family and friends and still not be taxed? Will they be taxed on the money I give them?
Ben – Again, it is actually good news. Gifting money, whether it be $5 or $500,000 isn’t a taxable income stream, but that doesn’t mean it isn’t without complexity. Everyone’s situation is different, did you just gift to someone and impact their Age Pension? Did you just gift to someone and impact your own Age Pension? Did you just gift to someone and impact their child support payments? Yes, I know it is boring, but unfortunately as they say there is no such thing as a free lunch. So if you are lucky enough to win Tattslotto, be sure to seek advice on how to manage your wishes for the money. It is a common theme that people blow large sums of windfall gain, so don’t fall into that trap and if you are going to help someone then make sure you do so in a way that gives you comfort that it will give them maximum benefit and protection as well as you maximum good vibes and fulfillment!
Me – I never considered the implications that go with gifting money, that’s good to know.
What are your suggestion I do with the money?
Ben – This is really a difficult question to answer, and funnily enough it doesn’t matter if it is $10,000 or $1,000,000 – the answer is always IT DEPENDS! The key with any change in circumstances is to seek advice from your professional team of support, Financial Planner, Accountant, etc. and make sure everything is considered first. Some initial options to consider would be: clear any debts, invest in super, invest outside of super, invest for yourself and those close to you, donate to charity. The big thing would be to make the money work for you, if you won $5,000,000 then just a modest return of 3% per annum is $150,000 a year of income!
Me – Wow, I definitely want it working for me. Thanks again Ben.
Now I better go and buy my winning ticket!
This blog contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.