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AustraliaPrize draws

Trade promotion rules in Australia

Prize draws are trade promotion lotteries run under state and territory law, and some need a permit. The prizes must be given as offered and the email must not mislead.

The law
Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010), sections 18 and 32; state and territory lottery laws, such as the Community Gaming Act 2018 (NSW), Lotteries Act 2019 (SA) and Lotteries Act 1964 (ACT)
Who enforces it
Australian Competition and Consumer Commission (ACCC); state and territory regulators, such as NSW Fair Trading, Consumer and Business Services (SA) and the ACT Gambling and Racing Commission
Penalties
For breaching section 32 (prizes) or making false claims, a company faces up to the greater of $50 million or 3 times the benefit gained, or 30% of turnover in the breach period if the benefit can't be worked out. Section 18 (misleading conduct) has no fine of its own, but courts can order other remedies.

What it means for your email

  • Draws decided by chance are trade promotion lotteries. Each state and territory sets its own rules, and you must meet the rules of every one you open entry to.
  • New South Wales: you need an authority if the total prize value of a promotion exceeds $10,000, and must send the rules to NSW Fair Trading at least 10 working days before it starts.
  • South Australia: a draw with total prizes worth more than $5,000 is a major trade promotion lottery and needs a licence before it starts.
  • ACT: no permit is needed if the total prize value is $3,000 or less. Above that, apply to the ACT Gambling and Racing Commission.
  • In NSW and Victoria, trade promotions can't charge an entry fee. Victoria needs no permit, but its conditions still apply.
  • The email must show the rules or say where to find them, and in NSW, if the promotion needs an authority, show the authority number. Giving the closing date, how to enter, the prizes and who can enter is good practice.

Do

  • Total up every prize's value before launch and check the permit rules in each state and territory you're open to.
  • Advertise the rules clearly and keep full terms easy to reach.
  • Give the prizes as described and on time.
  • Describe the odds and prizes accurately.

Don't

  • Don't offer a prize you don't intend to give, or won't give as offered. Section 32 of the Australian Consumer Law bans this.
  • Don't charge an entry fee.
  • Don't say or imply someone has won when they haven't.
  • Don't launch a draw that needs a permit, authority or licence before you have it.

Good to know

  • Queensland, Western Australia, Tasmania and the Northern Territory weren't checked for this card. Check their rules if you're open to entrants there.
  • In Victoria, per-entry costs such as a phone call, SMS or postage can't exceed $1 including GST.

Sources

Researched by Mailfois · 2026/27 edition · checked 20 October 2026

Not legal advice. This is a plain-English summary. Check the sources for anything specific, or take professional advice. Spotted something out of date? Email [email protected] and we'll credit you if you'd like.

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