Yahoo Finance Centrelink recipients warned after $150 million Powerball draw
If any were lucky enough to win big on Thursday's draw, they need to declare their winnings to Services Australia immediately.
Aussies on Centrelink have been warned following Thursday night's $150 million Powerball draw. The life-changing sum was won by just one lucky person in South Australia and there were a bunch of second and third-division winners who will walk away with tens or hundreds of thousands of dollars.
But if any of those winners are on a government benefit, they'll have to declare those earnings to Services Australia as soon as possible. It could have huge ramifications if they don't.
"Your prize may affect your entitlement,” The Lott explained. “This will depend on the amount of your prize and the current value of your assets."
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Services Australia doesn't count lottery wins in its income assessment for several payments because they can be "unlikely to happen again", "hard to predict" and the money wasn't from "a service or work provided".
But even if you give away every last cent to friends, family or charity, your Centrelink payments could still be affected.
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For people on the JobSeeker payment, for example, Services Australia has gifting rules and anything over that threshold will count in their assets test. The gifting-free areas are:
$10,000 in a financial year
$30,000 in 5 financial years - this can’t include more than $10,000 in any financial year.
You could put the winnings into a trust, however, Centrelink might still treat it as a gift. But it depends on who has control of the trust. Lump sums, like lottery wins, can also impact other government payments like the Age pension and Austudy.
"We encourage you to get financial advice and check with Centrelink," The Lott said.
Lottery wins are tax-free but you have to be careful
Thankfully in Australia, if you win big in the lottery, you won't be taxed on that money. However, that's not the end of the story.
"Once your prize is in a bank account, any interest earned on your prize is subject to income tax for both you and any gift recipients," The Lott said.
"We strongly suggest seeking professional financial advice for major lottery wins to ensure you receive the maximum benefit from your good fortune."
The winners of the $150 Powerball draw
The Lott confirmed one person won the $150m Powerball and the winning ticket was purchased in South Australia.
The winning numbers were 18, 29, 34, 8, 4, 28, and 6, with the Powerball number drawing number 11.
There were nine winning ticketholders who claimed second prize, each walking away with $276,036.95.
While the 261 third place ticket holders will claim $11,833.85 each.
The $150m Powerball draw, which coincidentally falls on the game’s 28th year anniversary on Thursday, is the third-biggest prize ever offered by an Australian lottery game.
The jackpot reached the mammoth prize after there were no division one winners during the past six Powerball draws.
Up to half of Australian adults were expected to have an bought a ticket in the hopes of winning Thursday’s prize draw.
While the winning ticket holder is yet to be confirmed, The Lott spokesman Anna Hobdell said most division one winners commonly bought a new home, enjoyed a lavish holiday, or helped family and friends with their prize money.
- with NCA Newswire
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