[Brad Lockyer]

Saturday night saw the draw of the $547 million USA Mega Lotto – an American draw open to Australians.

It’s hard to even imagine what that kind of money would do for your life. Obviously, you never have to worry about working again, you can buy any house you want, any car you want.
That level of wealth would allow you to do almost anything. You could just play golf full time. Or go fishing. Spend the rest of your life travelling?

What would you do with half a billion dollars?

[Ron]

It would place a contract on some polititians.

[David Ryder]

I could never spend it when I am already 70 plus. So I guess I would give a lot away to family and chosen charities. Tour the world in first class, live life to the full and enjoy the years I have left.

[Oldie87]

Divide it between my offspring and Charities. I am 91, so it doesn’t mean much to me anymore.

[Peter Sutton]

It’s a US lottery which means very different things to Australia. In Australia tax is not paid on lottery winnings. In the US it is. A winner would lose 38% US Federal Income Tax and State Tax.

One essential difference is that big wins like this are paid over thirty instalments in 29 years. One is paid upfront, then each year after. The payments are increased by about 5% per year to allow for inflation.

There is a cash option about half of the quoted amount. That half a billion is soon whittked down to about $150 Million. That some is not insignificant but a long way from the half a billion.

Different tax rules apply throughout the world. A win in Spain sees tax at 20%. In Italy about 22%. The US is taxed at 38% on wins above $1500. It’s made up of Federal Tax of 30% plus a state tax of 8%.

In Australia The Lottery Office buys the tickets and the state they buy in charges the 8%.

Many lotteries internationally do not permit overseas buyers.

A lot more complicated than first appears.

There are a range of lotteries available now. The odds though for the huge jackpots are in the hundreds of millions.

A little known but true statistic is that 60% of lottery winners are broke again within 5 years.

People buy the Lamborghini or Ferrari but don’t allow for the tens of thousands of dollars for insurance and servicing. They buy the penthouse or boat but don’t anticipate the harbour fees or body corporates.

Money is both a blessing and a curse.

[Author]

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