Ken purchased 10 tickets for $100 in the RSL lottery recently. Can Ken claim any or all of the $100 paid to the RSL under Division 30 ITAA97?
A) A full deduction of $100 is claimable under Division 30
B) No deduction is claimable as there is a material benefit provided
C) Ken can claim a deduction of $100 but only if none of his tickets actually wins a prize
D) Ken can only claim 50% of the $100 paid as that is the private portion of the donation made

Question

Quizplus · Accepted Answer

No deduction is claimable under Division 30 ITAA97 for lottery tickets purchased from charities like the RSL because the purchaser receives a material benefit (the chance to win a prize) in return for their payment, which does not qualify as a gift or donation under the tax law.

Ken Purchased 10 Tickets for $100 in the RSL Lottery