Australian laws regarding sweepstakes, known there as draws or competitions, are not so different from those in the United States. However, there are some considerations you will need to take into account when including Australia in your sweepstakes. National Sweepstakes Company (NSC) provides promotion administration for agencies and businesses, taking the guesswork out of the sweepstakes legal questions.
Differences in Australian Sweepstakes Law
Here are the main requirements of Australia Sweepstakes Law:
Skill and Chance
Like the United States, Australia separates skill-based competitions from chance-based competitions. If there is an element of chance involved in the sweepstakes, it is a chance-based competition. However, if the sweepstakes solely involve participants’ skills it is skill-based (often called a “Contest” in the United States).
The most important distinction between holding a skill-based competition or a chance-based competition is that a chance-based competition requires a permit in New South Wales, South Australia, and the Australian Capital Territory (ACT). There are a few stipulations, as well:
- South Australia requires a permit only when the value of the prizes exceeds AU$5,000.
- In the ACT, if the marketing of the promotion takes place online only with no physical presence in the ACT, no permit is required under ACT law.
- The applicant for the permit must have an Australian business number (ABN).
- If a draw is to occur, the process must be approved, and it must take place in Australia.
The price of a permit varies by state, ranging from $80 to $216 or more, depending on the prize value and territory. Global entities looking to run sweepstakes in Australia often need an Australian subsidiary to apply for any permits and conduct the draw; although in certain circumstances an advertising or marketing agency located within the territory can act on the Sponsor’s behalf.
Unlike the United States, no restrictions prevent a sweepstakes sponsor from charging participants for entry. That is, as long as the entry fee does not exceed the recommended retail price. As a result, Australian promotions can legally have all three of the following elements: a purchase required to enter, a draw to determine the winners, and a prize.
Australian State Laws
Just like in the United States, different states in Australia may have laws regarding sweepstakes. For example, the Northern Territory requires a permit for chance-based competitions if the total prize pool is worth $5000 or more. For more information, please contact us if you need additional information regarding specific laws for specific states.
International Sweepstakes Have Never Been Easier
Running international sweepstakes does not have to be a headache. Do you require a hand navigating Australian law to include the country in your sweepstakes? In that case, NSC can draft the rules in accordance with Australian laws, help you obtain a permit in whatever states and territories are needed and facilitate other elements of the administration, including winner selection and prize fulfillment.
Backed by legal professionals, National Sweepstakes Company supports brands and agencies of all sizes, scaling sweepstakes from local to global. So give us a call today at (888) 744-3217 for a free quote or fill out our contact form online.