What is the definition of a raffle?
A raffle is a game of chance where the prizes are either goods or cash or a combination of the two. Where the prize is cash only the charity must be careful that they do not contravene state lottery laws. A supply of a raffle that contravenes the state lottery laws will not be GST free. • How will the ATO deal with minor or unintended breaches of State and Territory Law with regards to raffles and bingo? Raffles or bingo run by charities will be GST-free if conducting the raffle or bingo does not contravene a State or Territory law. Where a breach of the State or Territory law occurs in a tax period a supply of a raffle ticket or bingo by a charity will be a taxable supply. In certain circumstances the relevant State or Territory authority, eg the Office of Lotteries in NSW may exercise its discretion to ignore such a breach because of its minor or unintended nature. As a result the raffle does not contravene the State law. In this case the supply would be GST-free. The ATO cannot comm
