Fans have questioned whether contestants have to pay tax on their prize money.

The Block 2025 houses are going to auction this weekend. Photos: Channel 9

History was made during last year’s season of The Block when billionaire entrepreneur Adrian Portelli spent a whopping $15 million on all five properties. Each team walked away from the auction significantly richer, with winners Maddy and Charlotte making $1.65 million and their co-stars each receiving upwards of $650,000.

While Adrian has vowed not to return to the renovation show, this year’s teams are hoping to achieve similar results without him when their properties head to auction this weekend. Social media has already been flooded with predictions about which team will win, and many people have been asking the same question on social media: Do they have to pay tax on their prize money?

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

Yahoo Lifestyle has done some digging, and the simple answer is no, contestants don’t have to pay tax on any prize money they receive on The Block.

According to moneysmart.gov.au, you do not have to pay tax on lottery winnings or other prizes, which include reality TV prize money. The ATO also states that, similar to money won in a lotto or raffle, you don’t declare amounts received for game show prizes.

“When it comes to winning prize money on reality TV or game shows, you’d only declare it if you regularly appear on these kinds of shows,” an ATO employee answered in a community forum.

“Then you’d be more like a professional game show contestant/reality TV star. If it’s more like a one-off thing, then no need to declare.”

The Block winners don’t have to pay tax on their prize money. Photo: Channel 9

Hidden catch with prize money from The Block

A previous Block contestant has also confirmed to Yahoo Lifestyle that the money won at the auction isn’t taxed, but there is a slight catch in terms of when you receive it.

“You don’t get it for 12 months,” they revealed. “It’s spread over that period, so you don’t talk bad [about] the show, and if so, you don’t get your money.”

Season 19 runner-ups Eliza and Liberty, who made $1.05 million on the show in 2023, also told Yahoo Lifestyle a few months after their win that contestants receive their prize money “in instalments”, but they had yet to be sent any of it.

Who will win The Block 2025?

Fan favourites Britt and Taz are currently tipped to win this year’s season of The Block, with 51 per cent of Yahoo Lifestyle’s readers voting for them as the predicted champions.

All five auctions will take place on Saturday, October 25, and air the following night on Channel 9, with the winning team taking home $100,000 on top of their profit from their sale.