The Block's prize money ATO tax rule revealed before 2025 Auction Day – and there's a catch

After months of hard work and preparation, all any Blockhead hopes for on Auction Day is life-changing money.

We’ve seen dozens of couples walk away with hundreds of thousands, and more than a few left auction as newly minted millionaires.

As The Block 2025 Auction Day approaches, fans wondered if contestants have to pay tax on their prize or if they can cash it in full?

Do The Block contestants have to pay tax on their prize money?

In short no, winners do not have to pay tax on any prize money the receive on The Block.

According to moneysmartgov.au, you don’t have to pay tax on lottery winnings and other prizes including reality TV prize money.

The ATO also says that, similar to money won in a lotto or raffle, you don’t declare amounts received for game show prizes.

There’s only one exception that would require contestants to pay tax on their TV prize and that is if they were regularly receiving winnings. The Block contestants winning is a one-off (or two in the case of All Stars) occasion and so is not considered ‘regular’.

The Block 2025 Auction Day predictions

Keep reading to find out who some of your favourite Block stars have tipped as the Auction Day winners.

Shaynna Blaze

Shaynna thought the winner of The Block 2025 would come down to the type of buyer.

“For the buyer who wants to live there it has to be Britt and Taz. It all starts with the entry into the lounge dining, the kitchen with the chef’s upgrade in appliances, the master wing that looks out onto the garden and then in the garden with the meandering pathway, wisteria covered pergola, pool, backyard, sauna, plunge pool, wine tasting room and cabana. I’m there!” she said.

Read more: Everything you need to know about The Block 2025’s Auction Day in Daylesford

“If it is an investor it has to be Robby and Mat, the sheer entertainment factor of the underground wine cellar, huge outdoor fireplace, pickle ball court and gym – it is an AirBnB dream!”

House 5 Robby and Mat

1 Cedar Lane, Daylesford VIC 3460

4

3

2

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Marty Fox

Real estate guru Marty suggested it was a two-horse race in Daylesford.

“I think either Robby and Mat in House 5 or Britt and Taz will take out the win in House 3, and it all comes down to value,” he said in an exclusive video.

Darren Palmer

Darren said many of the houses had points of difference that could fetch them a pretty penny.

“There are several reasons houses might win this year, from the elevated position and consistency of House 1 to the unobstructed corner outlook of House 5. I love House 4’s brick architecture and House 3’s soft timber vibe.”

But as for the ultimate winner?

“If I were a betting man, I’d say it would be between House 3 and 5,” Darren predicted.

House 3 Britt and Taz

3 Cedar Lane, Daylesford VIC 3460

4

3

2

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Dan and Dani

When it came to who would win The Block Auction, there was a clear auction frontrunner in Dan and Dani’s eyes – for once the pair were in agreeance!

“The way that property presents, it is gonna hook people. They’re going to come back for more and more and more,” she said of what she thought would be the winning house,” Dani said of her first pick.

They were also unanimous on who they thought was going to make the least amount of money at auction.

Keep reading here to find out who Dan and Dani were talking about.

The Block‘s Grand Finale Auction Day will take place Sunday October 26 at 7pm on Channel 9 and 9Now.

This article was originally published by Nine.com.au. Reproduced with permission.