* Last Edit on this Article – Do I need a Competition Permit in Australia – March 2016.
Running a competition in Australia can be a daunting task – especially when you consider that Australian states tend to operate independently of each other when it comes to competition permit. Well, we’re here to clear the air a little!
When searching the web for rules regarding running a trade promotion in Australia, there seem to be few sources that aggregate State’s positions on trade promotions and applying for a competition permit so we went called and emailed each state (August 2012) and put together this handy guide.
Competitions aimed at promoting a brand or business are classified in most Australian States as trade promotions. For instance – if you’re a marketing manager or an advertiser and you’re looking to promote a brand through a competition, you need to be assessing how you’re going to be running your competition as it impacts on whether or not you’ll be needing to apply for a trade promotion permit.
Raffles, club competitions or charitable competitions may be subject to different rules.
As a rule of thumb, Games of Skill – competitions that require a user to answer a question or submit something (Showing ‘Skill’ in order to win) – don’t require Trade Permits within Australia. These competitions are selected by a judge through a selection process where the best or most skillful entry decides the winner.
Games of Chance are competitions where chance or probability is taken into account following an entry will require a trade permit pending what State the promotion is open to and the total value of the prize. These trade promotions have an element of chance – like a lottery.
Currently, Trade Promotion Permits for Tasmania are not required, although certain conditions may apply.
So in summary, if you are conducting a national draw online or offline and there is an element of chance, you’ll need a permit in the ACT and NSW regardless of Prize Pool. If your trade promotion offers and Instant Prize (not drawn later or at the end of a competition period) you’ll also need a permit in SA. If there is No Element of Chance you do not need a permit in Australia. Note: We recommend seeking up to date legal advice and publishing clear terms and conditions to every promotion if it is a consumer (non-internal office draw) competition.
If you have any questions regarding running a trade promotion within Australia, please contact the respective Government bodies accordingly.
If you would to run a trade promotion as a digital campaign online, as either a random draw or game of skill you can contact us. More information on using AndMine for your campaign and our Competition / Random Draw Permit can be found here.