The world’s most popular YouTuber Mr Beast touched down in Australia this week to giveaway some cars and promote his new chocolate brand, but what exactly happens if you were lucky enough to win the coveted Lamborghini?
Winning a car may sound like a great thing, but for many people — particularly in America — the reality isn’t always as sweet.
Remember when Oprah gave away a car to everyone in her audience in 2004? Well, each of those “lucky” winners had to face up to $7,000 in taxes as a result. Sure you won a car, but if you don’t have the cash to pay the taxes and insurance, it can be more of a burden than a gift.
In the US, cars won as prizes are subject to taxes based on their market value, but in Australia things are a bit different.
Winning a car in Australia
Thankfully for the winners of Mr Beast’s Australian car giveaway, the rules aren’t so tough.
According to the ATO, you must declare certain prizes you win in your tax return — including cash, holidays or cars — but only if the competition is run by your:
- bank
- building society
- credit union
- investment body
If the prize was won in other competitions such as lotto draws or raffles, you don’t need to declare it.
“If you win prizes as a game show contestant, you only declare prizes you win if you receive regular appearance fees or game-show winnings,” the ATO website states.
According to Mr Taxman (Adrian Raftery), personal windfall gains that are one-offs are not taxable but you could pay capital gains tax (CGT) depending on the circumstances.
“Generally personal windfall gains that are one-offs are not taxable BUT potentially there is a small chance that there could be income tax on the car if you were a “professional game show contestant”, as well as potential CGT implications when selling depending on the circumstances,” Raftery told PEDESTRIAN.TV.
But like the name suggests, you only pay CGT on capital gains, so as long as you’re not selling the car for more than it is worth, you shouldn’t have to pay taxes on the sale.
Obviously, if you’re lucky enough to win a Lamborghini, you should contact a qualified financial professional before making any decisions. You should, however, take me for a spin first.
What about insurance if you won the Mr Beast car giveaway?
The other major concern when you’re gifted a car that is worth more than your life is insurance. Sure, a Lambo is great but you’re up shit creek without a paddle if you can’t afford to insure it.
According to the giveaway terms and conditions, registration, third party insurance and stamp duty are all included in the prize — which is actually pretty great on Mr Beast’s behalf.
“All car prizes include registration, compulsory third party insurance, stamp duty and dealer delivery charges (which may vary State by State),” the conditions state. It is unclear how long registration and third-party insurance is covered for.
“Additional insurance, options, petrol and all other ancillary costs are the responsibility of the winner. The only warranty given by the Promoter with respect to a car prize is that it is roadworthy when given to the winner. No extended warranty is given.”
However, additional insurance (which you’d want to have if you’re driving around a car that’s worth more than my life) is something you’re on your own with.
I tried to calculate the average insurance payment for a $442,581 Lamborghini Huracan for the purpose of this article but I couldn’t find an insurer in Australia that would actually cover it (which is probably a sign that my computer knows how poor I am). So unfortunately, I can’t give you an estimate on the monthly premium for insurance but let’s just assume it’s a lot.
The man who won the Lambo is a guy named Sergio, who claims this is his first car. Presumably, this means he hasn’t had an insurance policy in his name in the last few years, so God can only imagine what it will cost him to insure this bad boy.
