Can You Sell a Prize Home? Legal Guide for Australian Winners

Q: Can you actually sell a prize home after winning it in Australia?

Yes, you can sell a prize home in Australia, but it depends on the specific conditions set by the charity running the draw. Most major charities including RSL Art Union, Mater Lotteries, and Yourtown do permit resale, though some impose holding periods (typically 12-24 months) before you can sell. The prize home deed of transfer will clearly outline any restrictions. Unlike some international prize home schemes, Australian prize homes are generally considered your legal property once won and transferred, giving you ownership rights to sell. However, always review your specific prize conditions and consult a conveyancer before planning a resale.

Q: What tax do you pay when you sell a prize home in Australia?

When you sell a prize home, you'll be liable for capital gains tax (CGT) on any profit above the property's market value at the time you won it. The Australian Tax Office (ATO) considers the property's value on the date of transfer as your cost base. If the home appreciates in value before you sell, you'll pay CGT at your marginal tax rate (with a 50% discount if held over 12 months). Importantly, the prize home itself is not considered assessable income — only the capital gain is taxable. If you sell at a loss, you can't claim the loss unless the property was an investment. You should obtain a professional property valuation from the winning date to establish your cost base accurately.

Q: How long do you have to wait before selling a prize home?

The waiting period before you can sell a prize home varies by charity and draw. RSL Art Union typically allows resale after 12 months, while some Yourtown and Endeavour Foundation draws may have 24-month restrictions. Mater Lotteries generally permits resale without a mandatory holding period, though their deed may specify certain conditions. These restrictions exist to protect the integrity of the prize and ensure the winner genuinely occupies the home for a reasonable period. You'll find the exact holding period in your prize conditions documentation or deed of transfer — this is legally binding and must be adhered to. Attempting to sell before the permitted period could result in forfeiture of the property in extreme cases.

Q: Do you need permission from the charity to sell your prize home?

Once you've been transferred legal ownership of the prize home, you typically don't need ongoing permission from the charity to sell it, provided you've met any mandatory holding period. However, some charity deeds may contain 'first right of refusal' clauses requiring you to offer the property back to the charity at fair market value before listing publicly — this is rare but does occur with some Surf Life Saving and RSL draws. Always review your deed of transfer carefully for any such conditions. The charity's role ends once the prize has been transferred and any holding period is satisfied. It's essential to have a conveyancer review your prize documentation before proceeding with a resale to ensure you're not breaching any clauses in the original prize conditions.

Q: What is the average resale price of Australian prize homes?

Prize home resale prices in Australia typically reflect the underlying real estate market values in their respective locations. Most major prize homes are located in desirable areas — Noosa, the Gold Coast, Byron Bay, inner Melbourne, and coastal NSW suburbs — which tend to appreciate. Many winners report selling prize homes for 15-30% above the property's assessed value at the time of the draw, particularly if held for 2-3 years in a strong market. However, resale values depend entirely on market conditions at the time of sale, location desirability, property condition, and renovations made by the winner. Some winners break even or make modest losses if selling during a market downturn. Engage a local real estate agent to conduct a current market appraisal to understand your property's realistic resale value before listing.

Q: Are there stamp duty or conveyancing costs when selling a prize home?

Yes, you'll incur standard conveyancing and stamp duty costs when selling a prize home, just as with any residential property sale. Stamp duty on the sale (not the original prize) is payable to your state government based on the sale price — rates vary by state from around 3-7% depending on the property value. Conveyancing fees typically range from $800-$1,500 for a resale. You'll also pay real estate agent commissions (usually 2.5-3.5% of sale price), marketing costs, and potential inspection/pest report fees. Unlike the initial prize transfer, which is generally free, the resale process involves all standard property transaction costs. Budget approximately 4-5% of your sale price for combined stamp duty, conveyancing, and agent commissions to ensure accurate financial forecasting before selling your prize home.

Q: What should you do before selling a prize home?

Before selling your prize home, take these critical steps: (1) Obtain a professional property valuation from the date you won to establish your cost base for CGT purposes — keep this documentation for the ATO. (2) Review your original prize conditions and deed of transfer to confirm any holding periods have elapsed and check for resale restrictions or charity approval requirements. (3) Consult with a conveyancer or property lawyer to understand state-specific obligations and ensure you can transfer clear title. (4) Have the property inspected and any urgent maintenance completed to maximise resale value. (5) Engage a local real estate agent familiar with your property's market to provide a current valuation. (6) Consider your tax position and consult an accountant to understand your CGT liability if the property has appreciated. This preparation ensures a smooth resale and helps you avoid legal or financial complications.

Can you sell a prize home?

By Gary Oldman · 31 March 2026

Granted wishes, and answered prayers! That is exactly what winning a luxury, beachfront, prize home can feel like. But have you ever given any thought to...

There are multiple options available to prize home winners. Find out what they are below. Granted wishes, and answered prayers! That is exactly what winning a luxury, beachfront, prize home can feel like. But have you ever given any thought to what you would do with your property if you did win? You can sell your prize home! Now you may well be asking the question: ‘Can you sell a prize home?’ Of course the answer is yes and the best thing about choosing this course of action is that there are certain ways of selling that will make sure your profits are tax-free. The first of these is to sell it for up to the maximum price that the property was valued for on the day you won. The reason being that if you go over this valuation you will need to pay Capital Gains tax on anything above the initial price. That means selling for the max valuation may be better than exceeding it and having to pay out extra in tax. However, if you aren't quite sure whether you want to sell, just year, that’s OK. After all, winning a prize home is a massive life event and there is nothing wrong with taking some time to carefully decide what you want to do. Indeed, by holding onto your prize home for a year and then selling you may be able to get a 50% capital gains tax discount, which means it may be better to sell it for over your original valuation price. Of course, what matters here is both knowing the rules, and doing your sums very carefully! Why not rent it out? If you love the idea of keeping hold of your prize home but don't want to live in it, why not consider renting it instead? Indeed, there are two fantastic options available to prize home winners here. The first is to lease out the property to a single renter yearly, something that you can expect will net you around $170,000 a year. After all, these are beachside, multi-million dollar homes here! The other option is to only lease out your prize property during peak vacation times. Of course, because it's peak season, there will be a higher demand for your property and you can ask around $16,000 for a single week's rental. Rent for a few weeks or even months, and that will give you plenty to live on, while also allowing you to access and live in the property for the rest of the year at the same time! Take up residence Finally, the last option to consider if you are lucky enough to win a prize home is to move into it and use it as your permanent residence. Yes, that’s right you could be living in a gorgeous, million-dollar, beach-side home with your own pool, and all it will cost you is the price of entry in our draw. Also, if you do decide to live the good life and take up permanent residence, there is even more great news you need to be aware of. It's that many winners get to sell their old homes tax-free before moving to their new prize properties. Something that means you could be rolling in even more money, and have the resources to begin your new, prize-winning life in style.