We all love the idea of winning the lottery. Just imagine – all your money troubles could be over in an instant! No more worrying about bills or whether you can afford your weekly shop.

For most of us, it's nothing more than a pipe dream. But every now and then, someone's lucky enough to hit the jackpot and have their life changed forever.

However, recent incidents show that a huge sum of cash could make someone’s life significantly worse… such as what happened to this lottery winner.

61-year-old Craig Hill, who has been diagnosed with schizophrenia and post-traumatic stress disorder after being held hostage by eight inmates at Townsville Prison during his shift as a prison guard 18 years ago, claimed that a lottery win meant a steep drop in his pension benefits.

In an interview, Craig said he entered The Lott’s ‘Set For Life’ game back in October, and scored a prize of around $60,000 – a lower division win.

Craig saw his pension payment reduced after his Lotto win. Credit: Twitter/Craig Hill.

Under the terms of the lottery, he was supposed to receive $5,000 a month for a year.

However, Mr Hill’s joy quickly turned into dread and panic because as it turned out, his $60,000 win was considered as 'income'.

And because he suffers from psychological problems, Centrelink ruled him as 'a professional gambler' and slashed his disability pension by $250 a week.

Due to the cut, Craig now only receives about $328.20 a fortnight which is nearly half of his disability pension.

Following his request for a review, Mr Hill alleged that Centrelink officials also reduced his wife's carer's allowance by roughly the same amount as his pension.

'It’s ridiculous,' he said.

'I did the right thing and contacted Centrelink and they told me because it was paid monthly it counted as income from gambling.'

'So I asked if I could deduct all my gambling losses over the past 20 years and they said no, you only become a professional gambler on the day you win.'

'If I'd won $600,000 on the Powerball it wouldn't affect my pension but because it's paid monthly I'm a professional gambler?'

Craig vowed to take the dispute to the Administrative Appeals Tribunal but then was told that an audit of his entire pension for the past seven years is a possibility.

While the top prize for the Lott's Set for Life lottery is a monthly payment of $20,000 per month for 20 years, Mr Hill won a lower division with a one-year payment of $5,000 per month. Credit: The Lott.

'There's a culture in some of these departments where they see clients as the enemy but if they didn't have clients they wouldn't have jobs,' he added.

Understandably, the pensioner was outraged. Not only was he not expecting this turn of events, but he’s claiming that he’s not even close to being a 'professional gambler'.

He mentioned that he only plays Powerball whenever the jackpot gets high, and he also bought ‘Set For Life’ regularly since 2015.

Mr Hill clarified: 'I'm not betting on the horses or going to the casino, I maybe have a bit of a lash on the poker machines once in a while.'

Mr Hill also reached out to The Lott, the company in charge of distributing tickets for the game, in an attempt to have the money paid out all at once, but he claims that the organisation refused to do so and didn’t give a reason.

Given that his winnings weren’t considered taxable income by the Australian Taxation Office, and that ‘Set For Life’ was purchased with money that wasn’t immediately considered income by Centrelink, it doesn’t make sense to classify it as such.

However, even if the lottery winnings were tax-free, that wouldn’t influence their capacity to be assessed as income. According to the Social Services Department, 'unless specifically exempted in legislation, few income amounts are excluded from welfare calculations’.

'Lottery winnings that are received periodically, for example on a monthly basis for an indefinite length of time, are assessed as income for the period to which they relate,' the statement read.

'This is consistent with the principle of targeting assistance to those who need it most. A periodic lottery winning is an ongoing source of income which can be used for a person’s own self-support.'

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

 

[maxesmum]

This absolutely sucks! He was honest and told them of his windfall and this is how they repay him? It’s not as though he’s won millions. It’s a boost for a year. And that’s huge on a disability pension. That man and his wife must have been so excited and then to be knocked down like this. why should they get any of this money? It’s not fair! Well,should I ever win money I know what I’m doing. I’m not telling a soul! Maybe even shove it all in a shoe box. Centrelink sucks.

 

[Nanna Tracey]

We all love the idea of winning the lottery. Just imagine – all your money troubles could be over in an instant! No more worrying about bills or whether you can afford your weekly shop.

For most of us, it's nothing more than a pipe dream. But every now and then, someone's lucky enough to hit the jackpot and have their life changed forever.

However, recent incidents show that a huge sum of cash could make someone’s life significantly worse… such as what happened to this lottery winner.

61-year-old Craig Hill, who has been diagnosed with schizophrenia and post-traumatic stress disorder after being held hostage by eight inmates at Townsville Prison during his shift as a prison guard 18 years ago, claimed that a lottery win meant a steep drop in his pension benefits.

In an interview, Craig said he entered The Lott’s ‘Set For Life’ game back in October, and scored a prize of around $60,000 – a lower division win.

Craig saw his pension payment reduced after his Lotto win. Credit: Twitter/Craig Hill.

Under the terms of the lottery, he was supposed to receive $5,000 a month for a year.

However, Mr Hill’s joy quickly turned into dread and panic because as it turned out, his $60,000 win was considered as 'income'.

And because he suffers from psychological problems, Centrelink ruled him as 'a professional gambler' and slashed his disability pension by $250 a week.

Due to the cut, Craig now only receives about $328.20 a fortnight which is nearly half of his disability pension.

Following his request for a review, Mr Hill alleged that Centrelink officials also reduced his wife's carer's allowance by roughly the same amount as his pension.

'It’s ridiculous,' he said.

'I did the right thing and contacted Centrelink and they told me because it was paid monthly it counted as income from gambling.'

'So I asked if I could deduct all my gambling losses over the past 20 years and they said no, you only become a professional gambler on the day you win.'

'If I'd won $600,000 on the Powerball it wouldn't affect my pension but because it's paid monthly I'm a professional gambler?'

Craig vowed to take the dispute to the Administrative Appeals Tribunal but then was told that an audit of his entire pension for the past seven years is a possibility.

While the top prize for the Lott's Set for Life lottery is a monthly payment of $20,000 per month for 20 years, Mr Hill won a lower division with a one-year payment of $5,000 per month. Credit: The Lott.

'There's a culture in some of these departments where they see clients as the enemy but if they didn't have clients they wouldn't have jobs,' he added.

Understandably, the pensioner was outraged. Not only was he not expecting this turn of events, but he’s claiming that he’s not even close to being a 'professional gambler'.

He mentioned that he only plays Powerball whenever the jackpot gets high, and he also bought ‘Set For Life’ regularly since 2015.

Mr Hill clarified: 'I'm not betting on the horses or going to the casino, I maybe have a bit of a lash on the poker machines once in a while.'

Mr Hill also reached out to The Lott, the company in charge of distributing tickets for the game, in an attempt to have the money paid out all at once, but he claims that the organisation refused to do so and didn’t give a reason.

Given that his winnings weren’t considered taxable income by the Australian Taxation Office, and that ‘Set For Life’ was purchased with money that wasn’t immediately considered income by Centrelink, it doesn’t make sense to classify it as such.

However, even if the lottery winnings were tax-free, that wouldn’t influence their capacity to be assessed as income. According to the Social Services Department, 'unless specifically exempted in legislation, few income amounts are excluded from welfare calculations’.

'Lottery winnings that are received periodically, for example on a monthly basis for an indefinite length of time, are assessed as income for the period to which they relate,' the statement read.

'This is consistent with the principle of targeting assistance to those who need it most. A periodic lottery winning is an ongoing source of income which can be used for a person’s own self-support.'

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

Also is like me , you are on a disability pension , if you go overseas for more than 28 days a year , they stop your pension. Yes , that's right , we can only holiday for 28 days a year . Ridiculous !

 

[Sherza]

This absolutely sucks! He was honest and told them of his windfall and this is how they repay him? It’s not as though he’s won millions. It’s a boost for a year. And that’s huge on a disability pension. That man and his wife must have been so excited and then to be knocked down like this. why should they get any of this money? It’s not fair! Well,should I ever win money I know what I’m doing. I’m not telling a soul! Maybe even shove it all in a shoe box. Centrelink sucks.

Or get it paid to someone else’s account that has nothing to do with Centerlink

 

[Sloopy]

I notice that the official response refers to "an indefinite period of time". In this particular situation, it is not an indefinite period - it is a clearly defined period of one year. Centrelink are extremely particular over satisfying the letter of the law - when it suits them!

 

[Bernice S]

We all love the idea of winning the lottery. Just imagine – all your money troubles could be over in an instant! No more worrying about bills or whether you can afford your weekly shop.

For most of us, it's nothing more than a pipe dream. But every now and then, someone's lucky enough to hit the jackpot and have their life changed forever.

However, recent incidents show that a huge sum of cash could make someone’s life significantly worse… such as what happened to this lottery winner.

61-year-old Craig Hill, who has been diagnosed with schizophrenia and post-traumatic stress disorder after being held hostage by eight inmates at Townsville Prison during his shift as a prison guard 18 years ago, claimed that a lottery win meant a steep drop in his pension benefits.

In an interview, Craig said he entered The Lott’s ‘Set For Life’ game back in October, and scored a prize of around $60,000 – a lower division win.

Craig saw his pension payment reduced after his Lotto win. Credit: Twitter/Craig Hill.

Under the terms of the lottery, he was supposed to receive $5,000 a month for a year.

However, Mr Hill’s joy quickly turned into dread and panic because as it turned out, his $60,000 win was considered as 'income'.

And because he suffers from psychological problems, Centrelink ruled him as 'a professional gambler' and slashed his disability pension by $250 a week.

Due to the cut, Craig now only receives about $328.20 a fortnight which is nearly half of his disability pension.

Following his request for a review, Mr Hill alleged that Centrelink officials also reduced his wife's carer's allowance by roughly the same amount as his pension.

'It’s ridiculous,' he said.

'I did the right thing and contacted Centrelink and they told me because it was paid monthly it counted as income from gambling.'

'So I asked if I could deduct all my gambling losses over the past 20 years and they said no, you only become a professional gambler on the day you win.'

'If I'd won $600,000 on the Powerball it wouldn't affect my pension but because it's paid monthly I'm a professional gambler?'

Craig vowed to take the dispute to the Administrative Appeals Tribunal but then was told that an audit of his entire pension for the past seven years is a possibility.

While the top prize for the Lott's Set for Life lottery is a monthly payment of $20,000 per month for 20 years, Mr Hill won a lower division with a one-year payment of $5,000 per month. Credit: The Lott.

'There's a culture in some of these departments where they see clients as the enemy but if they didn't have clients they wouldn't have jobs,' he added.

Understandably, the pensioner was outraged. Not only was he not expecting this turn of events, but he’s claiming that he’s not even close to being a 'professional gambler'.

He mentioned that he only plays Powerball whenever the jackpot gets high, and he also bought ‘Set For Life’ regularly since 2015.

Mr Hill clarified: 'I'm not betting on the horses or going to the casino, I maybe have a bit of a lash on the poker machines once in a while.'

Mr Hill also reached out to The Lott, the company in charge of distributing tickets for the game, in an attempt to have the money paid out all at once, but he claims that the organisation refused to do so and didn’t give a reason.

Given that his winnings weren’t considered taxable income by the Australian Taxation Office, and that ‘Set For Life’ was purchased with money that wasn’t immediately considered income by Centrelink, it doesn’t make sense to classify it as such.

However, even if the lottery winnings were tax-free, that wouldn’t influence their capacity to be assessed as income. According to the Social Services Department, 'unless specifically exempted in legislation, few income amounts are excluded from welfare calculations’.

'Lottery winnings that are received periodically, for example on a monthly basis for an indefinite length of time, are assessed as income for the period to which they relate,' the statement read.

'This is consistent with the principle of targeting assistance to those who need it most. A periodic lottery winning is an ongoing source of income which can be used for a person’s own self-support.'

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

I would gladly give up $500 per fortnight in exchange for $5000 per month. What's his problem. Just because Centrelink have labelled him a gambler, which technically we all are if we play lotto.

 

[Thecla]

Sorry No sympathy vote from me. We sold our house to downsize (like the govt wants you to do) back in December 2021. As my hubby receives a part pension we went to Centrelink to tell them of this. Withing 12 hours his pension ceased along with any benefits he got with it.....discounts on electricity and gas, prescriptions etc. We disputed this asking why was this so. As our new build wasn't ready at the time (we went into an over 55;s) we put the money for the new unit in a bank account to keep safe. According to the back we would get around $3.500.00 interest for six months, if we added a periodical payment to it to add $1 a month it could be maybe $7,000.00. According to Centrelink they have a deeming rate of interest and they deemed we would get $45,000 interest on that money which took us over the threshold hence the cancellation of the part pension and benefits and also my cheaper prescriptions as well. After weeks and weeks of disputing this, even going to our local member, the only thing to come out of it was that we, but ended up only he could apply and get the medical benefits. Hence cheap scripts for him and full price for me! So if this guy is getting an extra $5,000 a month for 12 months then I think it covers the $1,000 a month from Centrelink he is losing Ohh wait lets double it he's still on top $1,000 a month. Sorry for being such a hard ass but thems the rules

 

[Noraya]

centrelink wanted me to sell my investment unit, then that money would be considered as an asset and I would lose my pension as well as benefits. centrelink expect me to live of this money for as long as it lasts. But i will need that money once I ll have to buy into a retirement place or nursing home! So now I have a very happy tenant sitting on an extremely low rent (he only pays council rates, strata fees etc) So I have NO rental income, but at least keep the unit without it costing me....

I remember being on the dole after my son passed away. I still had a mortgage to pay, was studying to have better chances to find a job at 50. yrs of age. I asked for some rental assistance, but that was obviously not on as I paid a mortgage, not rent. Centrelink suggested I should move to the Gold Coast or Sunshine Coast and rent a place. I said "but it will be even harder to find a job there than here in Sydney." "Dont worry, you ll just stay on the dole!" No wonder there are so many people not working.... (And before you ask: I finished my studies, found a job myself (NOT through acentrelink!) and paid back my friends who had helped me financially within 2 years.)

so it s not just age pension or disability pension...

 

[Joydie]

I’ll declare before I start that nobody in the civilised world is worse at maths than I am. However, both husband and wife have had their pensions cut by $1,000 per month. That means that Centrelink is paying them $2,000 less per month. The lottery win means they’re receiving $5,000 more per month. My rudimentary maths skills tell me that they’re actually $3,000 ahead per month. The guy said on ACA last night that he’s losing $2,000 per month. I don’t get his reasoning.

Hubby and I are on the aged pension, and we’d love to be in his shoes. And it’s not like it’s forever. I believe he’s just a glass half empty person, and instead of whinging, he should appreciate the windfall.

 

[Macarj]

I won't even give my story but simply the Government and particularly Centerlink are an ass

 

[maxesmum]

I won't even give my story but simply the Government and particularly Centerlink are an ass

Absolutely. I was put in a shocking position of being told I owed them $78,000.00!! Can you imagine? I have no idea where they plucked that figure from but for months and months they gave me hell until someone finally saw sense,reviewed it properly and found that they,in fact owed ME $5,000.00! No apology. Nothing. After months of stress and trauma it was a oh,sorry about that..see ya later. I loathe them.

 

[Staffordshire Whippet]

We all love the idea of winning the lottery. Just imagine – all your money troubles could be over in an instant! No more worrying about bills or whether you can afford your weekly shop.

For most of us, it's nothing more than a pipe dream. But every now and then, someone's lucky enough to hit the jackpot and have their life changed forever.

However, recent incidents show that a huge sum of cash could make someone’s life significantly worse… such as what happened to this lottery winner.

61-year-old Craig Hill, who has been diagnosed with schizophrenia and post-traumatic stress disorder after being held hostage by eight inmates at Townsville Prison during his shift as a prison guard 18 years ago, claimed that a lottery win meant a steep drop in his pension benefits.

In an interview, Craig said he entered The Lott’s ‘Set For Life’ game back in October, and scored a prize of around $60,000 – a lower division win.

Craig saw his pension payment reduced after his Lotto win. Credit: Twitter/Craig Hill.

Under the terms of the lottery, he was supposed to receive $5,000 a month for a year.

However, Mr Hill’s joy quickly turned into dread and panic because as it turned out, his $60,000 win was considered as 'income'.

And because he suffers from psychological problems, Centrelink ruled him as 'a professional gambler' and slashed his disability pension by $250 a week.

Due to the cut, Craig now only receives about $328.20 a fortnight which is nearly half of his disability pension.

Following his request for a review, Mr Hill alleged that Centrelink officials also reduced his wife's carer's allowance by roughly the same amount as his pension.

'It’s ridiculous,' he said.

'I did the right thing and contacted Centrelink and they told me because it was paid monthly it counted as income from gambling.'

'So I asked if I could deduct all my gambling losses over the past 20 years and they said no, you only become a professional gambler on the day you win.'

'If I'd won $600,000 on the Powerball it wouldn't affect my pension but because it's paid monthly I'm a professional gambler?'

Craig vowed to take the dispute to the Administrative Appeals Tribunal but then was told that an audit of his entire pension for the past seven years is a possibility.

While the top prize for the Lott's Set for Life lottery is a monthly payment of $20,000 per month for 20 years, Mr Hill won a lower division with a one-year payment of $5,000 per month. Credit: The Lott.

'There's a culture in some of these departments where they see clients as the enemy but if they didn't have clients they wouldn't have jobs,' he added.

Understandably, the pensioner was outraged. Not only was he not expecting this turn of events, but he’s claiming that he’s not even close to being a 'professional gambler'.

He mentioned that he only plays Powerball whenever the jackpot gets high, and he also bought ‘Set For Life’ regularly since 2015.

Mr Hill clarified: 'I'm not betting on the horses or going to the casino, I maybe have a bit of a lash on the poker machines once in a while.'

Mr Hill also reached out to The Lott, the company in charge of distributing tickets for the game, in an attempt to have the money paid out all at once, but he claims that the organisation refused to do so and didn’t give a reason.

Given that his winnings weren’t considered taxable income by the Australian Taxation Office, and that ‘Set For Life’ was purchased with money that wasn’t immediately considered income by Centrelink, it doesn’t make sense to classify it as such.

However, even if the lottery winnings were tax-free, that wouldn’t influence their capacity to be assessed as income. According to the Social Services Department, 'unless specifically exempted in legislation, few income amounts are excluded from welfare calculations’.

'Lottery winnings that are received periodically, for example on a monthly basis for an indefinite length of time, are assessed as income for the period to which they relate,' the statement read.

'This is consistent with the principle of targeting assistance to those who need it most. A periodic lottery winning is an ongoing source of income which can be used for a person’s own self-support.'

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

 

[Staffordshire Whippet]

Professional Gambler?
He should quit while he's ahead....

 

[Ricci]

I would willingly give up $500 per fortnight to have an extra $5000 per month. Where do I sign up?

 

[Tristeagan]

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

A lump sum payment would not have been considered income BUT welfare payments are made on both the income and assets tests. The lump sum would have been added to his assets (which may or may not have affected his pension depending what else he owns) and any interest he gained on the lump sum would have be counted as income and may affect the amount of pension. The bottom line is - welfare payments are made to people who are unable to support themselves and come out of everyone's taxes. He will still receive a part pension which means he will still get the benefits from his pension card and will go back on to his usual pension when his winnings run out. Personally I think he should count his lucky stars and make the most of his win.

 

[Mikeyboy2012]

As an experienced ex-Tax Agent, I can confirm that such wins are windfalls and as such are not Assessable Income in Australia, for Income Tax purposes.

By extension, it is reasonable that this win should not affect his pension, even though it is assessed under totally different legislation.

As stated by the department, had it been a lump sum, it would not have affected his pension.

I would certainly be contesting the decision and lobbying to have the legislation updated to make such windfalls exempt.

The method of payment should not affect this exemption.

 

[Rosalie30]

I would gladly give up $500 per fortnight in exchange for $5000 per month. What's his problem. Just because Centrelink have labelled him a gambler, which technically we all are if we play lotto.

Ditto!

 

[Susanne Bagnato]

We all love the idea of winning the lottery. Just imagine – all your money troubles could be over in an instant! No more worrying about bills or whether you can afford your weekly shop.

For most of us, it's nothing more than a pipe dream. But every now and then, someone's lucky enough to hit the jackpot and have their life changed forever.

However, recent incidents show that a huge sum of cash could make someone’s life significantly worse… such as what happened to this lottery winner.

61-year-old Craig Hill, who has been diagnosed with schizophrenia and post-traumatic stress disorder after being held hostage by eight inmates at Townsville Prison during his shift as a prison guard 18 years ago, claimed that a lottery win meant a steep drop in his pension benefits.

In an interview, Craig said he entered The Lott’s ‘Set For Life’ game back in October, and scored a prize of around $60,000 – a lower division win.

Craig saw his pension payment reduced after his Lotto win. Credit: Twitter/Craig Hill.

Under the terms of the lottery, he was supposed to receive $5,000 a month for a year.

However, Mr Hill’s joy quickly turned into dread and panic because as it turned out, his $60,000 win was considered as 'income'.

And because he suffers from psychological problems, Centrelink ruled him as 'a professional gambler' and slashed his disability pension by $250 a week.

Due to the cut, Craig now only receives about $328.20 a fortnight which is nearly half of his disability pension.

Following his request for a review, Mr Hill alleged that Centrelink officials also reduced his wife's carer's allowance by roughly the same amount as his pension.

'It’s ridiculous,' he said.

'I did the right thing and contacted Centrelink and they told me because it was paid monthly it counted as income from gambling.'

'So I asked if I could deduct all my gambling losses over the past 20 years and they said no, you only become a professional gambler on the day you win.'

'If I'd won $600,000 on the Powerball it wouldn't affect my pension but because it's paid monthly I'm a professional gambler?'

Craig vowed to take the dispute to the Administrative Appeals Tribunal but then was told that an audit of his entire pension for the past seven years is a possibility.

While the top prize for the Lott's Set for Life lottery is a monthly payment of $20,000 per month for 20 years, Mr Hill won a lower division with a one-year payment of $5,000 per month. Credit: The Lott.

'There's a culture in some of these departments where they see clients as the enemy but if they didn't have clients they wouldn't have jobs,' he added.

Understandably, the pensioner was outraged. Not only was he not expecting this turn of events, but he’s claiming that he’s not even close to being a 'professional gambler'.

He mentioned that he only plays Powerball whenever the jackpot gets high, and he also bought ‘Set For Life’ regularly since 2015.

Mr Hill clarified: 'I'm not betting on the horses or going to the casino, I maybe have a bit of a lash on the poker machines once in a while.'

Mr Hill also reached out to The Lott, the company in charge of distributing tickets for the game, in an attempt to have the money paid out all at once, but he claims that the organisation refused to do so and didn’t give a reason.

Given that his winnings weren’t considered taxable income by the Australian Taxation Office, and that ‘Set For Life’ was purchased with money that wasn’t immediately considered income by Centrelink, it doesn’t make sense to classify it as such.

However, even if the lottery winnings were tax-free, that wouldn’t influence their capacity to be assessed as income. According to the Social Services Department, 'unless specifically exempted in legislation, few income amounts are excluded from welfare calculations’.

'Lottery winnings that are received periodically, for example on a monthly basis for an indefinite length of time, are assessed as income for the period to which they relate,' the statement read.

'This is consistent with the principle of targeting assistance to those who need it most. A periodic lottery winning is an ongoing source of income which can be used for a person’s own self-support.'

Key Takeaways

• A disabled 61-year-old Australian had his pension slashed by $500 a fortnight after a $60,000 lottery win.
• Centrelink considered him a 'professional gambler' and cut his wife's carer's allowance by a similar amount.
• Mr Hill claimed he was very far from being a professional gambler and only played the lottery occasionally.
• Services Australia said that unless specifically exempted in legislation, few income amounts were excluded from welfare calculations.
• The department admitted that if Mr Hill had received the payout as a lump sum it wouldn't have been assessed as income.

In retrospect, it’s understandable that they made that decision given that there are rules set for such situations. However, Mr Hill's unique case is surely something to be reconsidered by the system.

In your opinion, do you think authorities should change the rules for pensioners claiming cash prizes?

 

[Susanne Bagnato]

I think the Government should Compensate all the People who became Problem Gamblers. They knew what was going to happen to Peoples Lives putting Poker Machines in every Pub. Of course People were fascinated by them, and wanting to have a Dabble. Calling this Man a Professional Gambler is absulute b.s,,,t. I think it should have been a warning prior to Purchase if it was going to be considered an Income. Perhaps he should leave it in the Bank, and Pay his Mortgage at the end. HAHAHA What is the difference if he receives it at the end . I constatly hear of People who manage to pull several Centre Link Payments. Perhaps they should spend their time and energy and focus on the real Professionals, Professional Centrelink Wroughters.

 

[Ricci]

As an experienced ex-Tax Agent, I can confirm that such wins are windfalls and as such are not Assessable Income in Australia, for Income Tax purposes.

By extension, it is reasonable that this win should not affect his pension, even though it is assessed under totally different legislation.

As stated by the department, had it been a lump sum, it would not have affected his pension.

I would certainly be contesting the decision and lobbying to have the legislation updated to make such windfalls exempt.

The method of payment should not affect this exemption.

I too was a Tax Agent of many years' experience and this win has nothing to do with Assessable Income for Tax purposes. The Assessment for eligibility for a pension is something else entirely and has no links to Income Tax.

Whilst it is perfectly reasonable to not include a windfall gain (Otherwise you would have to keep strict notes on each and every Pokies win etc) a monthly amount received from any source is not included in windfall gains but is classed as income. It could be contested I suppose but as the person is overall better off I doubt that he would win and anyway, by the time it got through the process the time would be almost up and he would be reverting to his full pension anyway,