How to Run a Competition in Australia
The complete business guide: legal requirements, state-by-state permits, competition types, terms and conditions, platform strategies, and a step-by-step launch plan.
8
States & Territories
Each with different rules
$10K
NSW Permit Threshold
Prize pool trigger
14+
Days Lead Time
For permit approval
$1.1M
Max ACL Penalty
For misleading promos
Why Businesses Run Competitions
Competitions are one of the most cost-effective marketing tactics in Australia. A well-run promotion can deliver brand awareness, customer data, social engagement, and direct sales all at once. Here's why Australian businesses use them:
Brand Awareness
A single well-promoted competition can reach hundreds of thousands of potential customers. Social sharing mechanics (tag-a-friend, share-to-enter) create organic viral exposure that paid advertising struggles to match.
Lead Generation
Collect email addresses, phone numbers, and customer preferences for future marketing. A $500 prize can generate thousands of opted-in leads at a fraction of the cost of paid lead generation.
Customer Engagement
Creative competitions (photo contests, 25 words or less) encourage meaningful interaction with your brand. User-generated content from competitions can be repurposed across your marketing channels.
Drive Sales
Purchase-to-enter promotions directly increase revenue. "Buy any product and go in the draw" mechanics are common in FMCG, retail, and hospitality industries across Australia.
Game of Chance vs Game of Skill
This is the most important distinction in Australian competition law. It determines whether you need a permit, what rules apply, and how much compliance work is involved.
Game of Chance
The winner is determined randomly. All valid entries have an equal chance of winning. These are classified as "trade promotion lotteries" under Australian law.
- Random draws from all entries
- Scratch-and-win promotions
- Instant win (random selection)
- Usually requires a permit
Game of Skill
The winner is determined by merit, creativity, or knowledge. A judge or panel evaluates entries and selects the best one.
- 25 words or less competitions
- Photo or video contests
- Quiz or trivia questions
- Generally no permit needed
Pro tip: If your "skill" element is trivial (e.g. "answer this easy question"), regulators may classify it as a game of chance. The skill component must be genuinely determinative of the winner. A common safe approach is a 25 words or less creative entry judged by an independent panel.
State-by-State Permit Requirements
Australia doesn't have a single national competition permit. Each state and territory has its own rules. For national competitions, you must comply with every jurisdiction where entrants reside.
New South Wales (NSW)
A permit is required for games of chance where the total prize pool exceeds $10,000. NSW is the only state that offers multi-year blanket permits (1, 3, or 5 years) covering all promotions during that period.
Apply through NSW Liquor & Gaming. Allow 14+ business days for processing.
Australian Capital Territory (ACT)
A permit is required where the prize pool available to ACT entrants exceeds $3,000. This is the lowest threshold in Australia.
Apply through ACT Gambling and Racing Commission.
South Australia (SA)
A permit is required for games of chance with a prize pool over $5,000. Any promotion using printed scratch-and-win mechanics requires a permit regardless of prize value. An independent scrutineer is required when prizes exceed $30,000.
Apply through Consumer and Business Services SA.
Northern Territory (NT)
A permit is needed if the promotion runs solely in the NT with a prize pool over $5,000. For national promotions, no NT permit is required if another state has already issued one.
Apply through NT Licensing Commission.
VIC, QLD, WA & TAS — No Permit Required
These states abolished trade promotion lottery permits but still impose conditions:
Victoria
Entry cost must not exceed $1. Permits abolished in 2015.
Queensland
Must be free to enter. Restrictions on certain prize types.
Western Australia
Must be free to enter. T&Cs must be emailed to the WA department. No surgical/medical prizes.
Tasmania
Purchase-to-enter is allowed but price must not exceed normal retail value.
National competitions: If your competition is open to all Australians, you need to comply with every state's rules simultaneously. Most businesses apply for NSW and ACT permits (since they have the strictest thresholds) and ensure they meet the conditions for the no-permit states.
Step-by-Step: Planning Your Competition
Define Your Objective
What's the goal? Brand awareness, email sign-ups, social followers, or direct sales? Your objective determines the competition type, entry mechanic, and platform.
Choose Your Competition Type
Game of chance (random draw) or game of skill (creative entry)? This affects your permit requirements, T&Cs, and judging process. Games of skill avoid most permit obligations.
Set Your Budget & Prize
The prize value determines permit requirements and audience interest. A $500 gift card can generate thousands of entries. Factor in: prize cost, permit fees, platform costs, promotion spend, and staff time for fulfilment.
Apply for Permits (If Required)
Allow at least 14 business days before your intended launch. For national promotions, apply to NSW and ACT first as they have the longest processing times. You cannot launch until all permits are approved.
Draft Terms & Conditions
Your T&Cs are a legal document. They must cover: promoter details, eligibility, entry method, dates, prize description, draw details, winner notification, privacy collection notice, and permit numbers. Once your competition launches, T&Cs cannot be changed.
Choose Your Platform
Where will people enter? Each platform has its own rules and best practices. See our platform-specific guides below.
Launch, Promote & Monitor
Promote across your channels: social media, email list, website, paid ads. Monitor entries for fraud or duplicate entries. Respond to questions promptly. Consider listing on competition aggregator sites like Competitions.com.au to maximise reach.
Draw, Notify & Fulfil
Conduct the draw using a fair, random selection method — our free Pick a Winner tool lets you run an animated draw and record it as video proof. Notify the winner within the timeframe specified in your T&Cs. Publish the winner's name as required by state regulations. Deliver the prize and keep records for at least 12 months.
Terms & Conditions Essentials
Every competition in Australia must have written terms and conditions, regardless of whether a permit is required. Your T&Cs are legally binding and cannot be modified once the competition launches. Use our free Competition T&C Generator to create professional, legally-structured terms in minutes.
Promoter's name, ABN & address
Eligibility (age, residency, exclusions)
How to enter & entry limits
Competition open & close dates
Full prize description & value
Draw date, time & location
Winner notification method
Winner publication details
Unclaimed prize procedure
Privacy collection notice
Permit numbers (if applicable)
Liability limitations
Platform-Specific Guides
Each social platform has its own promotion policies on top of Australian law. Choose the right platform for your audience and follow the rules to avoid having your competition shut down.
Facebook Competitions
Meta's promotion policies, comment-to-enter vs app entries, boosting strategies, and common mistakes.
Read guideInstagram Competitions
Reels, Stories, comment-to-enter, hashtag strategies, influencer collaborations, and content rights.
Read guideTikTok Competitions
UGC challenges, duet and stitch mechanics, reaching younger demographics, and branded hashtags.
Read guideCommon Mistakes to Avoid
Launching without permits
Running a game of chance without required permits can result in fines and being forced to cancel the promotion mid-campaign. Always apply well before your launch date.
Changing T&Cs after launch
Once your competition is live, the terms are locked. You cannot extend dates, change prizes, or alter entry methods. If you need flexibility, build it into the original T&Cs (e.g. "promoter reserves the right to substitute prize of equal or greater value").
Requiring a "share" to enter on Facebook
Meta's promotion policies prohibit requiring users to share on their personal timeline as a condition of entry. You can ask them to comment or like, but not share. Violating this can get your page penalised.
Forgetting to publish the winner
Most states require you to publish the winner's name publicly (website, social media, or newspaper) within a specified timeframe. Failure to do this is a compliance breach.
Ignoring privacy obligations
You're collecting personal information. Your T&Cs must include a privacy collection notice explaining what data you collect, why, and how it will be used. You must comply with the Australian Privacy Act.
Competition Launch Checklist
Objective and KPIs defined
Competition type chosen (chance/skill)
Prize sourced and valued
Budget approved (prize + permits + promo)
Permits applied for (if game of chance)
Permits received and numbers recorded
T&Cs drafted and reviewed by legal
T&Cs hosted on a public URL
Entry mechanic tested end-to-end
Promotional assets created
WA T&Cs emailed (if national)
Privacy collection notice included
Draw date and witness arranged
Winner notification process documented
Winner publication plan in place
Prize fulfilment logistics confirmed
Promoting Your Competition
Building a great competition is only half the job. Without promotion, even the best prizes won't generate the entries you need. We've created a complete guide covering every promotion channel available to Australian businesses.
How to Promote a Competition in Australia
Social media, paid ads, email marketing, aggregator sites, influencer partnerships, SEO, PR, and a week-by-week promotion timeline.
Read the full promotion guideWant to Promote Your Competition?
List your competition on Competitions.com.au and reach thousands of engaged Australian compers actively looking for competitions to enter.
List Your Competition