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Run compliant promotions with confidence

This guide walks you through advertising requirements, promotion terms and conditions, permit obligations and best-practice compliance in Australia.
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What is a trade promotion?

A trade promotion is a free-to-enter competition run by a business to promote products or services and increase brand awareness. Trade promotions encourage customer engagement, drive sales and expand reach. They can take many forms, but every promotion must comply with state and territory regulations to ensure fairness and consumer protection.

Running a trade promotion is not just about launching a competition. There are different promotion types, legal requirements and advertising obligations that must be met. The first step is deciding what type of competition you want to run and what business goal it supports.

Types of trade promotions

Trade promotions generally fall into two categories.

1. Games of skill: Winners are chosen based on merit. Entrants might answer a question or submit creative content. No element of chance is involved.

2. Games of chance: Winners are selected randomly. This includes prize draws, instant wins and lotteries.

The promotion you choose depends on what you want to achieve. Games of chance often attract higher participation, while games of skill can support deeper engagement or brand storytelling.

What are the advantages of running trade promotions?

Trade promotions help businesses create awareness, incentivise purchase and deepen loyalty. Brands use trade promotions to:

  • Drive sales by motivating customers to act

  • Increase visibility for new or existing products

  • Grow customer databases

  • Build long-term brand loyalty

  • Generate excitement and engagement around campaigns

When designed well, trade promotions are one of the most effective marketing tools for customer acquisition and retention.

How to run a trade promotion

There is no single way to run a promotion. Your approach should align with your campaign goals, budget and time frame.

Common mechanics include:

  • Online entry forms

  • Social media entry methods

  • Proof of purchase submissions

  • Instant win promotions

  • Games of skill

Before launch, ensure you have clear terms and conditions, the right legal approvals and compliant advertising material. Once a promotion begins, key details such as the end date cannot be changed as this may mislead consumers.

Advertising requirements for trade promotions

A common pitfall is failing to advertise a promotion properly. Advertising must be accurate, clear and compliant with the rules of each jurisdiction.

For example, NSW requires key terms to be displayed in a way that allows consumers to make an informed decision before entering. This often includes the promotion period, eligibility, how to enter, prize information and how winners will be determined.

Every advertisement must align with the full terms and conditions.

How to draw a winner

For a game of chance, winners must be selected randomly. This can be done:

  • Manually using a physical draw

  • Electronically using an approved randomisation system

Each state and territory has rules regarding how electronic draws must be conducted. Your draw method must be transparent, secure and fair.

What prizes can you offer in a trade promotion?

A prize can be anything of value, but some items cannot be offered as prizes under Australian law. For example:

  • Weapons

  • Tobacco products

  • Cosmetic surgery

  • Liquor as the primary prize in the Northern Territory

Some states require disclosure of the prize value, while others require only a description of the prize. Always check the rules that apply to your jurisdiction.

Which laws apply to trade promotions in Australia

Every state and territory has its own regulator and legislation governing trade promotions.

As of 2025, the following frameworks remain current:

Victoria
Victorian Gambling and Casino Control Commission
Gambling Regulation Act 2003
Gambling Regulations 2015

New South Wales
Liquor and Gaming NSW
Community Gaming Act 2018
Community Gaming Regulation 2020

Tasmania
Tasmanian Liquor and Gaming Commission
Gaming Control Act 1993
Gaming Control Regulations 2014

South Australia
Consumer and Business Services
Lotteries Act 2019
Lotteries Regulations 2021

Western Australia
Gaming and Wagering Commission of Western Australia
Gaming and Wagering Commission Act 1987
Gaming and Wagering Commission Regulations 1988

Australian Capital Territory
ACT Gambling and Racing Commission
Lotteries Act 1964
Gambling and Racing Control Act 1999
Gambling and Racing Control Regulation 2002

Queensland
Office of Liquor and Gaming Regulation
Charitable and Non-Profit Gaming Act 1999
Charitable and Non-Profit Gaming Regulation 1999

Northern Territory
Department of Industry, Tourism and Trade
Gaming Control Act 1993
Gaming Control Regulations 2006
NT Code of Practice for Responsible Gambling

Regulators regularly update their guidelines, particularly for digital advertising, online promotions and privacy compliance. All trade promotions must also comply with the Australian Consumer Law, including rules covering misleading or deceptive conduct.

Do you need a trade promotion permit?

Whether you need a permit depends on the state or territory and the prize pool value.

Victoria
No permit required.

New South Wales
Permits required for prize pools over $10,000.

Tasmania
No permit required, but conditions apply where a purchase is required.

South Australia
Permits required for prize pools over $5,000 or instant scratch mechanics.

Western Australia
No permit required.

Australian Capital Territory
Permit required for prize pools over $3,000. Additional rules apply for promotions advertised on ACT-hosted websites.

Queensland
No permit required.

Northern Territory
Permit is required for prize pools over $5,000 unless covered by an interstate permit.

Penalties for non-compliance

If a trade promotion breaches state or territory rules, businesses may face:

  • Fines and enforcement action

  • Forced cancellation of the promotion

  • Breach of Australian Consumer Law

  • Reputational damage

Misleading or deceptive conduct can occur even without intent. Errors in advertising, misrepresentation of prizes or unclear terms may all result in penalties. Terms and conditions must always be accurate, complete and publicly accessible.

Tools such as Plexus Promotion Wizard can help businesses generate compliant terms and conditions reviewed by promotional law experts within 24 hours.

Summary: Why compliance matters for trade promotions

Running a trade promotion is an effective way to engage customers, increase visibility and boost sales. To do this safely and successfully, businesses must:

  • Understand the type of trade promotion they are running

  • Comply with state and territory legislation

  • Advertise the promotion accurately

  • Use compliant mechanics for drawing winners

  • Ensure the prize pool meets legal requirements

  • Maintain accurate, accessible terms and conditions

With the right preparation and the correct legal safeguards, trade promotions can deliver major brand and commercial benefits. For end-to-end compliance, expert guidance and faster turnaround times, many businesses choose Plexus Promotion Wizard to manage competition terms and promotional approvals.

Running a promotion in NSW

Running a trade promotion in New South Wales helps businesses attract new customers, reward existing audiences and improve campaign performance. NSW regulates trade promotions under the Community Gaming Act 2018 and the Community Gaming Regulation 2020, so understanding the rules is essential for avoiding penalties and running a compliant competition.

This guide explains when a trade promotion gaming authority is required, what must be included in your terms and conditions, how to notify NSW Fair Trading and the latest regulatory changes affecting competitions in NSW.

What is a trade promotion in NSW?

A trade promotion in NSW is a free-entry competition that promotes a business, product or service where chance determines the winner. Entry must be free aside from standard communication costs such as SMS, postage or normal data charges.
Trade promotions may be games of chance, such as draws or instant wins, or games of skill, where winners are selected based on merit.

Do you need a permit or authority to run a promotion in NSW?

NSW no longer issues traditional trade promotion permits. These have been replaced with a time-based trade promotion gaming authority. An authority is required only when the total prize pool for a single promotion exceeds 10,000 dollars.

Authority requirements include:

  • No authority is required for promotions with a prize pool of 10,000 dollars or less.

  • No authority is required for genuine games of skill, regardless of the prize pool.

  • An authority is required for a game of chance with a prize pool of 10,001 dollars or more.

  • A 1, 3 or 5-year authority can be obtained and can cover multiple promotions throughout its duration.

You can apply for an authority online through Service NSW.

Notifying NSW Fair Trading

If your promotion requires an authority, you must notify NSW Fair Trading and provide the competition terms and your authority number at least 10 working days before the promotion begins. Notification is submitted through the NSW community gaming online portal. NSW does not issue formal approval for this step but may contact you if they have concerns.

Fees for a NSW authority

The cost of an authority depends on whether you choose a 1, 3 or 5 year term. Fees are set by NSW Fair Trading and updated periodically. You should always check the current fee structure on the NSW Government or Service NSW website before applying.

What must be included in your competition terms and conditions?

Your terms and conditions must be clear, accessible and compliant with the Community Gaming Regulation 2020. They must contain:

  • Opening and closing dates

  • Eligibility and age restrictions

  • Entry limits

  • Full prize details and values

  • Any costs associated with entering or claiming a prize

  • The method of determining winners (draw or skill-based decision)

  • Winner notification details

  • The claim period for prizes

  • Unclaimed prize draw details

  • Dispute resolution processes

  • Limits on prizes per person

  • Promoter and benefiting business details

  • A prohibition on anyone conducting or determining the competition from entering

Terms must be available on a website or displayed at the place where the promotion is conducted.

Advertising requirements

If your promotion requires an authority, the authority number must appear on all promotional advertising. All advertising must comply with Australian Consumer Law and must not mislead consumers about prize value, chances of winning, eligibility or closing dates.

Winner notification and publication

NSW no longer mandates a specific timeframe or method for notifying winners. Promoters must follow the process outlined in their own terms and conditions.
Winner publication is no longer mandatory unless your terms require it.

Best practice is to notify winners personally by email, SMS or phone and keep a record of the notification attempt.

Unclaimed prize draws

If a prize is not claimed, your rules must specify when and how an unclaimed prize draw will occur. If your rules do not specify a timeframe, NSW requires that unclaimed prize draws occur at least 3 months after the original draw. When running a national promotion, consider unclaimed prize rules in other states such as South Australia, which may require a longer delay.

Prize rules in NSW

  • Monetary prizes: Monetary prizes over certain thresholds must be paid by electronic funds transfer if requested by the winner, or otherwise as agreed between the winner and the promoter.

  • Alcohol prizes: Alcohol prizes must comply with responsible consumption laws. Prizes containing alcohol must not be awarded to minors and must fall within NSW-approved volume limits.

  • Prohibited prizes: The following prizes cannot be awarded in NSW:

    • Tobacco, smoking or vaping products

    • Cosmetic surgery intended for appearance enhancement

    • Prizes involving substances regulated under the Poisons and Therapeutic Goods Act

    • Any prize that would breach NSW or Commonwealth law

  • Substituting prizes: If a prize becomes unavailable due to unforeseen circumstances, a similar prize of equal or greater value may be provided. For high-value prizes, such as those valued above 100,000 dollars, entrants must be notified before the draw and allowed to remain in or opt out.

Record keeping requirements

Trade promotion gaming activities are excluded from mandatory recordkeeping under the Regulation. NSW Fair Trading still recommends keeping adequate records such as entry data, draw results and winner notifications to support transparency and respond to complaints.

Making compliance easier

Managing NSW competition requirements can be complex, especially when promotions run nationally. Platforms such as Plexus Promotion Wizard support compliance by generating NSW-compliant terms, managing notifications and ensuring your promotion aligns with the Community Gaming Regulation 2020.

Running a promotion in Victoria

Running a trade promotion in Victoria is an effective way to increase engagement, reward customers and build brand loyalty. While Victoria no longer requires permits for trade promotions, there are specific rules for games of chance and marketing compliance that every business must follow.

This article shares what you need to know when running a promotion in Victoria, Australia, including when terms and conditions are required, what restrictions apply and how to ensure your competition complies with Victorian law.

What types of trade promotions can you run in Victoria?

There are two primary types of trade promotions you can run in Victoria.

  • Game of Skill: A game of skill selects winners based on merit or judgement. Entrants might submit written answers, creative content or other material that can be assessed objectively. Game of skill promotions often attract higher-quality engagement and deepen customer involvement.

  • Game of Chance: A game of chance selects winners randomly, such as through a draw, instant win mechanic or scratch card. These promotions generally attract higher participation because the entry barrier is low and outcomes are based on luck rather than skill.

Do you need a permit to run a competition in Victoria?

A permit is not required for any game of skill or game of chance promotion in Victoria. Victoria abolished its trade promotion lottery permit system on 21 June 2015, and no permits have been required since. Businesses can run trade promotions freely as long as they comply with Victorian gambling, consumer and privacy laws.

Should your promotion have terms and conditions?

While only games of chance legally require written terms and conditions, all promotions should have a clear ruleset. Terms and conditions help you explain entry requirements, outline judging or draw procedures, protect the promoter from liability and meet privacy obligations.

Terms should cover:

  • How entrants participate

  • Eligibility and limits on entries

  • How winners are selected

  • The nature and value of prizes

  • How winner notifications will occur

  • The claim period for prizes

  • Any marketing rights relating to participant content

  • Data handling and privacy practices

Tools such as Promotion Wizard can generate compliant Victorian terms quickly.

Key legal requirements when running a promotion in Victoria

Victoria does not require permits, but it does impose several important rules for trade promotions.

  • Entry fee: You cannot charge an entry fee to participate in a trade promotion lottery. Consumers may be required to buy a genuine product or service to enter, but mail entries must not cost more than standard postage, and phone or SMS entries must not exceed 1 dollar per entry.

  • Written consent: You must obtain written consent from the business whose goods or services are being promoted if you are running the promotion on their behalf.

  • Winner publication: Winners of any prize valued over 1,000 dollars must be published:

    • In a Victorian newspaper, or

    • On the internet for at least 28 days, or

    • In the same trade publication where the promotion was originally advertised.

  • Costs to accept a prize:  Winners cannot be required to incur a cost to accept a prize beyond trivial expenses. For example, you cannot require the winner to pay for travel insurance or administration fees as a condition of accepting the prize.

  • Entrant presence at the draw: You cannot require an entrant to be physically present at the draw to be eligible to win unless the entry and draw occur on the same day and at the same location.

  • Prize delivery timeline: Prizes must be awarded or transferred to the winner within 28 days after the draw.

  • Re-draws: A redraw is not mandatory in Victoria. Promoters must take reasonable steps to award the prize, and if unsuccessful, may dispose of it as outlined in the terms and conditions.

  • Prize substitution:  If a prize is unavailable, it may be substituted with a prize of the same or greater value. The winner must either:

    • Agree in writing to the substitution, or

    • Be informed that the original prize is unavailable due to circumstances beyond the promoter’s control and reasonable attempts to reach an agreement have failed.

  • Prohibited prizes: Prizes must not be offensive, unsafe or against public interest. Examples include:

    • Tobacco products

    • Weapons

    • Cosmetic or medical procedures

    • Any product that breaches Victorian law

Record keeping requirements

Victoria requires promoters to keep accurate trade promotion lottery records for three years after the promotion ends. Records must include:

  • A financial accounting of the promotion

  • A full accounting of all entries

  • A clear record of prize distribution

Keeping thorough records supports transparency and helps protect the promoter in the case of complaints or regulatory inquiries.

Making compliance easier

Managing state-based rules can be complex, especially when promotions run nationally. Tools like Plexus Promotion Wizard automate Victorian requirements and help you generate fully compliant terms and conditions in minutes.

By using Promotion Wizard, you can:

  • Produce Victorian-compliant T&Cs in as little as 15 minutes

  • Protect your campaign from regulatory risk

  • Ensure consistent compliance across multiple states

  • Streamline approvals and documentation for future campaigns

Running a promotion in QLD

Running a trade promotion in Queensland is an effective way to increase brand awareness and engage new and existing customers. Queensland’s rules differ from other states, so it is important to understand how trade promotions are regulated and what you must include to run a compliant competition.

This guide explains the requirements for running a promotion in Queensland, including whether a permit is needed, what your terms must contain and how to manage winner selection and prize fulfilment.

What types of trade promotions can you run in Queensland?

There are two primary types of trade promotions in Queensland.

  • Game of Skill: A game of skill chooses winners based on merit or judgment. Entrants may answer a question, submit written content or demonstrate creativity. There is no element of chance. These promotions drive deeper engagement with your brand.

  • Game of Chance: A game of chance selects winners randomly, such as through a prize draw or instant win. These promotions attract higher participation because entry is simple and outcomes rely on luck.

Do you need a permit to run a competition in Queensland?

A permit is not required for any game of skill or game of chance promotion in Queensland.

Trade promotions that involve chance are regulated under the Charitable and Non-Profit Gaming Act 1999 as Category 4 games, but they do not require a licence. Promoters must still comply with Queensland’s rules regarding entry, prize conditions and record keeping.

Should your promotion have terms and conditions?

For games of chance, written terms and conditions are essential. For games of skill, terms are recommended to protect the promoter, clarify rules and manage privacy obligations.

Your terms should clearly outline:

  • Eligibility

  • Entry method and entry limits

  • Prize descriptions and retail values

  • Closing and draw dates

  • The order in which prizes are drawn (if not descending value)

  • How winners will be notified

  • Whether results will be published

  • Any conditions on claiming a prize

  • How disputes will be resolved

Plexus Promotion Wizard can generate compliant Queensland terms in minutes and have these reviewed by an expert lawyer in less than 24 hours. 

Key legal requirements when running a trade promotion in Queensland

Queensland does not require a permit, but it does impose specific rules for games of chance.

  • Entry fee: Entry must be free. If participants must purchase goods or services to enter, the cost must not exceed the normal market value of the goods or services.

  • Winner notification: Queensland does not mandate a specific notification method or timeframe. Promoters must follow their stated terms.

  • Prohibited prizes: The following cannot be offered as prizes in Queensland:

    • Tobacco products

    • Weapons or ammunition

    • Surgery or cosmetic procedures

    • Any item restricted by State or Commonwealth law

    • Tickets or chances in another gaming activity not approved under Queensland law

  • Time of draw: All prize draws must occur within one year of the start date of the promotion.

  • Eliminations: Only one round of elimination is permitted.

  • Prize delivery: Prizes must be awarded within one month of the winner being determined unless:

    • The winner cannot be contacted, or

    • A longer timeframe is agreed in writing.

  • Prize substitution: Prize substitution is permitted if the replacement is of equal or greater value and is similar to the original prize.

  • Re-draw: A redraw is mandatory for unclaimed prizes. The default rule is that the redraw must occur three months after the original draw, unless your terms specify an earlier date. For national promotions, ensure the redraw timing also meets requirements in other states.

Record keeping requirements

Under Queensland law, general gaming records must be kept for five years. You do not need to keep individual entry records, but you must retain:

  • Draw documentation

  • Prize details

  • Names of winners

  • Financial records relating to the promotion

Heavy penalties apply for non-compliance under the Charitable and Non-Profit Gaming Act 1999, so accurate documentation is essential.

Making compliance easier

Managing multiple state requirements can be complex. Plexus Promotion Wizard simplifies compliance by generating Queensland-ready terms, guiding you through each rule and helping you launch your promotion quickly and confidently.

With Promotion Wizard you can:

  • Generate compliant Queensland T&Cs in as little as 15 minutes

  • Ensure your promotion meets Category 4 game requirements

  • Reduce the risk of penalties or non-compliance

  • Standardise processes across national campaigns

Running a promotion in ACT

Running a trade promotion in the Australian Capital Territory (ACT) can help you grow your audience, reward customers and increase engagement. However, the ACT has specific legal requirements that must be followed to ensure your competition is compliant. Failure to meet these obligations can lead to penalties, delays or reputational risk.

This guide outlines what you need to know when running a promotion in the ACT, including when a permit is required, what rules apply, and how to design a compliant game of skill or game of chance.

Understanding the two types of trade promotions

Before you launch a promotion in the ACT, identify the type of competition you plan to run and how winners will be selected.

  • Game of Skill: A game of skill selects a winner based on merit. Entrants may answer a question, upload content or complete a task that is judged against clear criteria. A permit is not required in the ACT for games of skill.

  • Game of Chance: A game of chance selects a winner randomly. Examples include:

    • Prize draws

    • Instant win promotions

    • Scratch cards

    • Digital randomisation

Games of chance typically attract higher entry numbers but require closer compliance oversight.

Do you need a permit to run a promotion in the ACT?

In the ACT, a permit is required for a game of chance when the total prize pool exceeds 3,000 dollars.
A permit is not required for games of skill.

If you do need a permit, you must submit your terms and conditions to the ACT Gambling and Racing Commission for review. Approval typically takes three to five business days.

Permit requirements summary

  • Game of skill: Permit not required

  • Game of chance: Permit required if prize pool exceeds 3,000 dollars

Do you need terms and conditions?

Only games of chance are legally required to have terms and conditions in the ACT. However, it is considered best practice for all promotions, including games of skill, to have written terms.

Terms help:

  • Protect the promoter

  • Communicate rules clearly

  • Manage privacy obligations

  • Avoid misleading conduct under Australian Consumer Law

Tools such as Plexus Promotion Wizard generate compliant terms for your promotion quickly.

ACT requirements for running a game of chance

If your promotion requires a permit, you must meet the following conditions.

  • Winner notification: Winners must be notified in writing within 21 days of the draw.

  • Winner publication: If a prize is valued at 1,000 dollars or more, the winner must be published in a regulator-approved format, such as the promoter’s website or a newspaper.

  • Unclaimed prize redraw: If prizes are not claimed within the specified timeframe, a redraw must be conducted. The redraw process must be included in your terms.

  • Prohibited prizes: The ACT prohibits tobacco products as prizes. Alcohol can be offered but must include responsible consumption messaging, and entry must be limited to individuals aged 18 years and over.

  • Record keeping: You must retain all promotion records, including entry forms, draw documentation and receipts, for 12 months.

Designing a promotion that works in the ACT

Before launching your competition, consider the purpose of your promotion and how you will measure success.

Games of skill are ideal for deep engagement.

Games of chance are effective for broad reach and high participation.

Define:

  • Who you want to target

  • How you expect participants to interact

  • What success looks like for your campaign

Your objectives will determine the most effective promotion format.

Simplifying ACT promotion compliance

Managing the legal variations across states can be complex. Using a platform such as Promotion Wizard streamlines the process by generating compliant terms, flagging requirements and guiding you through ACT obligations.

With Promotion Wizard you can:

  • Generate compliant T&Cs in minutes

  • Receive lawyer-approved T&C's in less than 24 hours. 

  • Reduce compliance risk

  • Keep track of regulatory changes automatically

Running a promotion on social media

Running a social media competition can unlock powerful benefits for brands. Competitions on platforms such as Facebook, Instagram, TikTok and X help businesses boost visibility, attract new audiences and drive meaningful engagement. When executed well, social media promotions can also increase the chance of virality, generate user-generated content and provide valuable audience insights. Whether you are running a random prize draw, a photo or video contest, a caption competition, user-generated content activity or an influencer collaboration, clear terms and conditions are essential. These rules outline eligibility, entry steps and how winners will be determined. They ensure transparency, protect your brand and avoid disputes.

Why social media promotions need clear terms and conditions

Clear terms and conditions support:

  • Transparency so participants understand expectations

  • Brand protection by allowing removal of invalid entries.

  • Fairness by ensuring consistency for all entrants.

  • Legal compliance across consumer law and platform rules.

  • Privacy protection by outlining how data will be handled.

  • Strong terms help deliver a positive and compliant campaign experience.

What are social media competition terms and conditions?

They are the legally binding rules that govern how the competition operates. They define eligibility, entry steps, promotion timing, prize details and winner selection. These should be written in plain language, be easy for participants to access and comply with Australian Consumer Law, privacy regulations and each platform’s promotional requirements.

Key elements to include

  • Eligibility: Define age, residency and other criteria. Australia is transitioning to a 16+ minimum age for social media use, so competitions should restrict entry to people aged 16 years or over unless parental consent is verifiably obtained for younger users. Promotions involving alcohol must be restricted to those 18 years or over.

  • Entry process: Specify how to enter and any relevant restrictions. Include required hashtags, tags or content formats. Align with platform rules such as no tagging people in photos they are not in (Meta), no contests that encourage repeated reposting (Twitter), and no misleading tagging or harmful content (TikTok).

  • Promotion period: State the exact opening and closing dates and times. These timestamps form the basis for determining valid and invalid entries.

  • Prize details: Describe the prize, its retail value and any conditions or restrictions. Accurate prize details are essential for determining whether state-based trade promotion permits are required.

  • Winner selection: Explain the draw method or judging criteria, including date, time and location. For national game-of-chance campaigns, an unclaimed prize draw is typically required two months after the original draw.

  • Notification and prize claiming: State how winners will be notified and how long they have to claim their prize. Best practice is to tag winners publicly in the competition post and ask them to contact you directly rather than sending unsolicited direct messages.

  • Rights and ownership: Detail how your brand may use participant-submitted content. Clarify that entries must be original and free from third-party intellectual property issues.

  • Disqualification rules: Specify circumstances where participants or entries may be disqualified, including fraudulent behaviour, bot activity, multiple accounts or non-compliant entries.

  • Liability and disclaimers: State that the promotion is not sponsored or endorsed by the relevant platform. Disclaim liability for technical failures or issues beyond your control.

  • Modifications and termination: Reserve the right to modify or suspend the competition if unforeseen circumstances occur. Note that you cannot cancel a promotion due to low entry numbers because a prize must be awarded once advertised.

Ensuring compliance with laws and platform rules

Platform guidelines:

    • Facebook: 

      • Do not incentivise Facebook actions such as liking a Page, sharing posts, or tagging friends for entry. Facebook’s Platform Policy prohibits rewarding users for Page likes or any action involving social plugins; tagging for entry is also non-compliant (though mentioning a friend in a comment without requiring a tag is allowed).

      • Non-permitted mechanics still occur widely, and enforcement by Meta remains inconsistent. These entry methods technically breach platform rules but are low-to-moderate risk, rather than high risk, for most brands.

      • Key risks of using prohibited mechanics include public complaints about non-compliance (creating administrative and reputational issues) and the theoretical possibility of Facebook disabling the Page. Although this second risk exists, practical enforcement is extremely rare and has not been observed in recent years.

    • Instagram: 

      • Do not ask entrants to inaccurately tag content. Instagram strictly prohibits encouraging users to tag themselves in photos they are not in or to apply misleading tags. You may ask entrants to comment and mention a friend, but you should not require a formal “tag” that misrepresents who appears in an image.

      • Brands are fully responsible for the promotion. Instagram requires promoters to create compliant terms and conditions and ensure the giveaway meets all applicable laws. This includes consumer law, privacy, age restrictions and local trade promotion regulations.

      • Terms and conditions must include platform disclaimers. You must include:

        • A complete release of Instagram (and Meta) by every participant.

        • A statement that the promotion is not sponsored, endorsed, administered by or associated with Instagram.

        • This wording remains mandatory under the latest Instagram Promotion Guidelines (2025).

    • Twitter: 

      • Discourage spam, repetitive posting and multiple accounts. You must clearly state that entrants who create multiple accounts or repeatedly post the same Tweet will be disqualified. Twitter explicitly prohibits encouraging duplicate content or manipulative engagement. A limit such as “one entry per person per day” is recommended.

      • Ensure entries are visible and accessible for judging. Entrants must post from public accounts and must include a mention of your brand’s handle (for example @Brand) so you can reliably track entries. Public search cannot be relied on because some posts are filtered out of search results by Twitter’s quality filter.

      • Use relevant hashtags and follow platform rules. Hashtags must relate to the promotion to avoid misuse or spam classification. Your terms must clarify eligibility, entry method and judging or draw processes, and must state that the promotion is not sponsored, endorsed or administered by Twitter.

    • TikTok: 

      • Ensure safe, original and guideline-compliant content. TikTok strictly prohibits promotions that encourage dangerous behaviour, misuse of audio, copyright violations or actions that breach its Community Guidelines. Your terms must make clear that all entries must be original, safe and appropriate for a general audience. Content cannot involve unsafe stunts, harmful challenges or unlicensed music.

      • Discourage spam, fake engagement and multiple accounts. TikTok prohibits artificially inflating engagement. You must clearly state that creating multiple accounts, using bots, mass-commenting or repeatedly uploading similar videos to increase chances of winning will result in disqualification. A limit such as one entry per person is recommended.

      • Use relevant hashtags and mandatory disclosures. Hashtags must be directly related to the promotion to avoid triggering spam filters. Your promotion terms must state that the competition is not sponsored, endorsed or administered by TikTok. If influencers are involved, entries must comply with ACCC guidance and TikTok’s ad disclosure rules (for example using #ad or #sponsored when required).

      • Protect intellectual property and music rights. TikTok requires all audio and visual elements used in competition entries to be properly licensed. Brands should either provide approved sounds or instruct entrants to use only TikTok’s copyright-cleared music library. Terms must clarify that entrants grant permission for the brand to reuse their content.

  • Privacy and data protection: Explain how personal information will be used, stored and protected. Identify any third parties. Comply with the Privacy Act 1988. IMI best practice recommends publicly tagging winners instead of sending unsolicited messages to reduce impersonation risks.

  • Intellectual property: Require original content, prohibit unlicensed music or images and outline how your business may use submitted content. Provide clear rules around trademarks and sound recordings.

  • Advertising and promotion regulations: Ensure ads are not misleading. Significant conditions, such as eligibility and entry limits, should appear directly in the promotional post with the full terms accessible via a link.

Drafting strong and enforceable terms

Terms should be clear, accessible and outline ownership, liability, dispute resolution and fraud prevention. IMI best practice includes publishing a judging rubric for skill-based competitions, using fraud detection tools, timestamping entries and using independent judges where appropriate.

Communicating terms to participants

  • Instagram: Link full terms in the bio and reference the link in the promotional post.

  • Facebook, Twitter and TikTok: include a shortened link to the full terms in the post. Use clear bullet points for entry steps to avoid confusion.

Enforcing the terms

Remove entries that breach eligibility or requirements, verify age and residency, monitor for bots or vote manipulation and confirm that all steps for entry were completed. If public voting is used, include safeguards to prevent fraudulent voting behaviour.

Conclusion

Social media promotions can drive significant brand growth when executed with care. Clear terms and conditions protect your business, ensure fairness and help you comply with legal and platform requirements. For fast and compliant setup, Plexus Promotion Wizard enables you to generate legally reviewed terms in as little as 15 minutes.

Types of competitions

Trade promotions come in many forms, and the type you choose will affect your compliance obligations, permit requirements and how you run your draw or judging process. Understanding the different categories of trade promotions helps you design a campaign that meets your objectives while staying on the right side of Australian law.

The two primary categories are games of skill and games of chance, but there are several other promotion mechanics that fall under the broader definition of a trade promotion. These include gift-with-purchase offers, tipping competitions, trade incentive competitions and internal competitions.

Each type has different rules depending on where the promotion is conducted, the total prize pool and how winners are determined. Choosing the right mechanic from the start will help you avoid compliance issues and unnecessary permit costs.

Games of skill vs. games of chance

The most important distinction in Australian trade promotions law is whether a promotion is a game of skill or a game of chance. This determines whether you need a permit, which states require notification, and how your draw or judging must be conducted.

A marketing professional reviewing trade promotion types and compliance requirements on a digital tabletGames of skill

A game of skill is a promotion where winners are selected based on merit, creativity or ability. Because there is no element of chance, no trade promotion permit is required in any Australian state or territory. Common examples include caption competitions, photo or video contests, and creative answer questions. For a promotion to qualify as a game of skill, judging criteria must be clearly defined and the winning entry must genuinely be selected on merit.

Games of chance

A game of chance is any promotion where winners are selected randomly, such as a prize draw, instant win, scratch-and-win card or lottery mechanic. These promotions may require a permit depending on the total prize pool and the states or territories in which the promotion is conducted. Permit requirements vary by jurisdiction, South Australia and the ACT impose permit thresholds based on prize pool value, while NSW requires businesses to hold a standing authority for any chance-based promotion with a prize pool over $10,000.

When is a competition permit required?

Understanding when a competition permit is required is essential for running compliant promotions in Australia. Whether or not you need a permit depends on whether the promotion is based on skill or chance, the value of the prize pool and the states or territories where the promotion is conducted.

This guide explains when permits are required for games of skill, games of chance, gift-with-purchase offers, tipping competitions and internal competitions.

Game of skill promotions

A permit is not required. 

A game of skill is a promotion where winners are determined based on merit. There is no element of chance involved. Examples include:

  • Answering a question judged on creativity

  • Submitting a photo or video

  • Solving a problem or puzzle

If judging determines the winner, a permit is not required in any Australian jurisdiction.

Game of chance promotions

A permit may be required.

A game of chance includes any promotion where winners are selected randomly, such as:

  • Prize draws

  • Instant win mechanics

  • Electronic randomisation

Permit requirements depend on where the promotion is conducted and the total prize pool.

Permit requirements by prize pool for national promotions

Prize pool

Permit requirements

0.01 dollars to 3,000 dollars

SA permit required only if the promotion uses printed scratch and win cards

3,001 dollars to 5,000 dollars

ACT permit required plus SA permit if printed scratch cards are used

5,001 dollars to 10,000 dollars

ACT and SA permits required

10,000 dollars or more

ACT permit, SA permit and NSW trade promotion authority required


Permit rules by state or territory

  • New South Wales: NSW no longer issues individual trade promotion permits. Businesses must obtain a 1, 3 or 5 year authority for any promotion with a prize pool over 10,000 dollars. There is no maximum prize pool value.

  • Australian Capital Territory: Permit required for prize pools of 3,001 dollars or more. Exempt lotteries apply for promotions under 3,000 dollars if certain conditions are met.

  • South Australia: Permit required if the prize pool is 5,001 dollars or more. A permit is also required for any promotion using printed scratch and win mechanics, regardless of prize value. Example: Providing scratch cards for a chance to win a T-shirt in venue requires an SA permit even if the prize pool is only 50 dollars.

  • Northern Territory: Permit required if the prize pool is 5,001 dollars or more and the promoter does not already hold a permit issued in another jurisdiction. Example: A national promotion with a 50,000 dollar prize pool that holds NSW, ACT and SA permits does not require a separate NT permit.

  • VIC, TAS, WA & QLD: Permits are not required. Promoters must still comply with each state's trade promotion conditions.

How to determine where your promotion is conducted

A promotion is considered to be conducted in a state or territory based on:

  • Where entrants reside: If entry is restricted to residents of a particular state, the promotion is considered to be conducted in that state. Example: If the promotion is open only to NSW residents, NSW rules apply.

  • Where the entry mechanic takes place: If entry occurs entirely in one location, you can argue the promotion is conducted solely in that state. Example: If entrants drop business cards into a bowl at a conference in Victoria and a winner is drawn at the event, no permits are required, even if the winner lives in NSW.

Guaranteed gift offers

A permit is not required.

If every eligible participant receives a gift, there is no element of chance. Example: Every customer who buys a product receives a bonus item during the offer period.

Limited gift offers

A permit may be required depending on the entry steps and where the promotion is run.

Gift provided at point of purchase

If the gift is handed to the customer immediately and advertising is removed when stock runs out, no permit is required.

Other gift claim mechanics

Permits may be required if there is uncertainty about who will receive a gift.

  • NSW: A permit is required where there are two or more steps in the claim process. Example: Purchase in store and then go online to claim a limited gift.

  • ACT: No permit is required for online claims that can be time stamped. A permit is required if claims are submitted by mail because it is impossible to determine order of receipt.

First correct entry competitions

Permit requirements follow the same rules as limited gift offers. If chance is involved because timing cannot be accurately determined, permits may apply.

Trade incentive competitions

A permit may or may not be required depending on the mechanic.

  • No permit required:  If the winner is the person with the highest sales and the winner can be objectively determined, there is no chance involved. Include a non-chance tie-break method, such as answering a question judged on merit.

  • Permit may be required: If entries into a draw are awarded based on sales, the winner is determined by chance and permits may be required. Refer to the game of chance rules by state.

Tipping competitions

A permit may be required.

Tipping competitions involve predicting outcomes across a sporting season. NSW and ACT generally require permits for tipping competitions because they consider chance to influence the result. Other states do not require permits.

Internal competitions

Permit requirements depend on how the internal competition is structured.

  • No permit required: If the competition is for employees only and does not promote sales, no permits are needed. Example: Employees complete an entry form for event tickets.

  • Permit may be required: If chances to win are tied to sales or performance, NSW and SA may require permits.

  • ACT exception: ACT does not require permits for internal competitions if they are not advertised externally. If the promotion could be seen by the public, a permit may be required.

Run your next competition with confidence

If you want to run a competition without the stress of navigating complex permit rules, Plexus Promotion Wizard provides end-to-end support. The platform generates compliant terms and conditions, handles multi-state permit requirements and helps you launch faster with confidence.

Draw requirements for competitions in Australia

Running a compliant competition draw is a critical part of any game of chance promotion in Australia. The way a draw is conducted, recorded and communicated directly affects legal compliance, entrant trust and brand reputation.

This guide explains how competition draws work in Australia, including draw timing, random selection methods, electronic and manual draw options, scrutineer requirements and best practices for modern promotions in 2025.

What are the draw requirements for competitions in Australia?

For national game of chance promotions, the prize draw must be conducted within 30 days of the competition close date. Where practicable, members of the public should be given the opportunity to witness the draw.

Competition terms and conditions must clearly state the draw date, time and location. All draw locations must be within Australia. Draws should not be scheduled on weekends or public holidays to reduce compliance and operational risk.

If a prize remains unclaimed, an unclaimed prize draw must generally be conducted at least two months after the original draw date, unless the prize is time dependent, such as event tickets.

How random prize draws work in modern promotions

Random draws are used when winners are determined by chance rather than skill. To be compliant, the selection method must be genuinely random, fair and capable of being audited if requested by regulators.

Modern random draws in Australia typically fall into two categories: manual draws and electronic draws. Both are permitted when conducted correctly.

Manual competition draws

A manual draw involves physically selecting entries, such as printed entry forms drawn from a container or barrel.

Manual draws do not require pre-approval from regulators. They are often suitable for small promotions with a low volume of entries or where entries are collected in physical form.

However, manual draws can become impractical for large campaigns due to time, accuracy and audit limitations.

Electronic competition draws

Electronic draws use a computerised system to randomly select winners. This may include a dedicated draw platform, software tool or spreadsheet-based randomisation.

There is no longer a requirement to have electronic drawing systems formally approved. However, lottery authorities may request details about how the draw was conducted, including the system used and the method of randomisation.

For promotions with high entry volumes, electronic draws are typically the most efficient and reliable option.

Do electronic competition draws need approval?

Electronic draw systems do not require formal approval in Australia. That said, promoters must be able to demonstrate that the draw was random, fair and conducted in accordance with the published terms and conditions.

Promoters should retain records explaining how the draw system works and how winners were selected in case of regulatory review or entrant complaints.

Scrutineer requirements for competition draws

A scrutineer may be required to oversee a competition draw depending on where the promotion is conducted and the total prize value.

In New South Wales, a scrutineer is required when the total prize pool exceeds $10,000.
In South Australia, a scrutineer is required when the total prize value in a single draw is $30,000 or more.

Other states and territories generally do not mandate scrutineers, but using one can still be considered best practice for high-value or high-profile promotions.

Choosing between manual and electronic draws

The right draw method depends on how entries are collected and the scale of the promotion.

If entries are submitted on paper, a manual draw may be simpler. However, promoters may still choose to digitise entries to enforce entry limits and remove duplicates more accurately.

If entries are collected online, an electronic draw is usually the most practical approach. Printing and manually drawing thousands of entries is rarely efficient or reliable.

For large campaigns, a trusted electronic draw system reduces administrative burden and ensures consistency.

Managing entry limits and duplicate entries

If your terms limit entries to one per person or restrict the number of prizes per entrant, your draw process must enforce those rules.

Before conducting the draw, duplicate entries must be removed. This often requires checking multiple identifiers such as name, email address and phone number rather than relying on a single field.

Care must be taken not to remove legitimate entrants who share similar details, such as common names.

If the same person is drawn multiple times where only one prize per person is permitted, only the first valid entry should be accepted and subsequent draws invalidated.

Failing to enforce entry limits can result in complaints, reputational damage and the need to award additional prizes.

Social media competitions and data extraction

For competitions run on platforms like Facebook or Instagram, promoters must ensure they can extract all valid entries.

Small campaigns may allow manual copy and paste into a spreadsheet. Larger promotions typically require a tool that can extract entries based on hashtags or account mentions.

Without reliable data extraction, it becomes difficult to enforce entry limits or demonstrate fairness in the draw.

Best practices for compliant competition draws in 2025

Always document your draw method and retain records.
Ensure draw dates, locations and mechanics match the published terms.
Remove duplicate entries before conducting the draw.
Use electronic draws for high-volume promotions.
Engage a scrutineer where required or where risk is high.
Conduct unclaimed prize draws on time and as specified.

Simplifying competition draws with Plexus Promotion Wizard

Managing competition draws manually can be time consuming and risky. Plexus Promotion Wizard helps promoters conduct compliant electronic draws without administrative complexity.

By using a purpose-built system, promoters reduce the risk of error, ensure fairness for entrants and maintain clear records if questions arise.

Why draw compliance matters

Competition draws are not just an operational step. They are a legal requirement that protects entrants and your brand.

By modernising draw processes and aligning them with current Australian regulations, businesses can run promotions with confidence, fairness and transparency.

Giveaway rules and regulations in Australia: What businesses need to know

Giveaways are a popular way for businesses to increase engagement, grow their audience and improve brand visibility. However, running a giveaway in Australia requires careful planning and strict compliance with national and state regulations. Businesses must understand their obligations under the Australian Consumer Law and follow the rules that govern fair competition and promotional conduct.

This guide explains the key legal requirements for giveaways in Australia, including terminology, eligibility rules, permits, advertising obligations and best practices for compliant promotions.

What laws apply to giveaways in Australia

Giveaways must comply with the Australian Consumer Law (ACL), which sets out rules to protect consumers from misleading, deceptive or unfair conduct. Additional state and territory rules may apply when the giveaway takes the form of a trade promotion.

Key ACL requirements for giveaways

Section 154 of the ACL

It is an offence to offer a gift, prize or free item without the genuine intention of providing it. Once a giveaway is advertised, the promoter must award the prize as described. For example, a business cannot cancel a giveaway because entry numbers are lower than expected.

Section 18 of the ACL

Businesses must not engage in misleading or deceptive conduct. This applies to all giveaway advertising and communications. Examples include:

  • Showing a prize that differs from the actual prize

  • Using a headline that overstates the number of prizes or chances of winning

  • Publishing terms and conditions that do not match how the giveaway is actually run

Unfair practices

A giveaway must not:

  • Misrepresent the chances of winning

  • Fail to award prizes as promised

  • Impose unreasonable conditions for claiming a prize

These practices can result in enforcement action under the ACL.

The role of the ACCC

The Australian Competition and Consumer Commission (ACCC) oversees national consumer protection law. It enforces compliance with the ACL and takes action against misleading or deceptive conduct. Penalties can reach up to 50 million dollars for corporations that breach consumer law, which makes compliance essential for any business running a promotional giveaway.

Key terminology for understanding giveaway rules

To ensure compliance, it helps to know the distinctions between the types of promotions commonly used in Australia.

Sweepstakes

A sweepstakes is a free, chance-based giveaway where winners are selected randomly. No purchase or skill is required.

Lottery

A lottery involves chance but typically requires participants to purchase an entry or pay to participate. Lotteries are heavily regulated and require specific licences.

Competition

Competitions involve skill or judgment. Winners are selected based on merit rather than chance. Examples include creative entries or answer-in-25-words contests.

Prize

A prize is anything of value offered to a participant, such as products, gift cards, tickets or experiences. Prize descriptions must be accurate and clear.

Eligibility

Eligibility criteria define who can enter the giveaway. They may include age restrictions, residency requirements or other conditions.

Terms and conditions

Terms and conditions (T&Cs) outline the rules of the giveaway. They must clearly describe entry methods, eligibility, key dates, prizes and how winners are selected. T&Cs must be easy to access and written in clear language.

Types of giveaways in Australia

Australian businesses use several types of giveaways. Each comes with different compliance considerations.

Sweepstakes

Participants enter for free and winners are chosen at random. These are straightforward to run but must comply with fairness and privacy requirements.

Lotteries

Lotteries require payment to enter and are subject to strict licensing and regulatory controls. They are typically unsuitable for routine marketing giveaways.

Skill-based competitions

Participants enter by completing a task and winners are chosen based on skill or merit. These competitions do not involve chance and generally do not require permits, but rules must clearly explain how entries will be judged.

Social media contests

Businesses often use social platforms to collect entries, encourage engagement or run voting-based promotions. Each platform has its own promotional guidelines, and Australian consumer law applies regardless of where the promotion is hosted.

Essential elements of a compliant giveaway

To run a giveaway safely and legally, you must address several core elements.

Eligibility requirements

Define who can enter, such as age limits or residency restrictions. These must be reasonable and clearly disclosed.

Entry methods and restrictions

Promoters must offer a free method of entry if participation requires a purchase. Entry limits and alternative entry methods must be explained in the T&Cs.

Prize conditions and value

Prize descriptions must be accurate and include:

  • The nature of each prize

  • The approximate retail value

  • Any associated costs or restrictions

  • Conditions such as expiry dates or transferability

Privacy obligations

Giveaways often involve collecting personal information. Businesses must comply with the Privacy Act 1988 (Cth). T&Cs must explain:

  • What data is collected

  • How the data will be used

  • How long it will be stored

  • How participants can opt out of marketing

Compliance with advertising law

All promotional materials must be accurate and transparent. The Australian Association of National Advertisers (AANA) Code of Ethics also applies to many campaigns. Advertising cannot be misleading or conceal eligibility requirements, prize conditions or key terms.

Winner selection and notification

You must clearly explain whether winners are:

  • Randomly drawn

  • Judged based on skill

  • Selected through voting

You must also include:

  • The draw date

  • How winners will be notified

  • What happens if a winner cannot be contacted

Creating compliant giveaway rules

Giveaway rules form the foundation of a lawful promotion. Effective T&Cs include:

  • Eligibility criteria

  • Entry mechanics

  • Free entry alternatives

  • Start and end dates

  • Prize descriptions and values

  • Judging or draw methods

  • Winner notification process

  • Any legal disclaimers or content usage rights

Rules should be written in plain language to ensure consumer understanding. They should be easily accessible from any point of entry into the promotion.

Many businesses use tools like Plexus Promotion Wizard to create compliant, legally reviewed T&Cs quickly.

Do you need a permit to run a giveaway?

Permit requirements vary depending on the structure of the giveaway and the state or territory where participants reside.

Factors that influence permit requirements

  • Total prize value

  • Chance-based vs skill-based mechanics

  • Jurisdiction-specific rules

  • Whether the giveaway resembles a lottery

State and territory permit rules

Each state and territory applies different thresholds:

  • ACT requires permits for prize pools over 3,000 dollars

  • NSW requires permits for prize pools above 10,000 dollars

  • SA requires permits for prize pools above 5,000 dollars

  • NT requires permits for prize pools above 5,000 dollars, unless another state’s permit covers it

  • QLD, VIC, TAS and WA do not require permits for standard trade promotions

Always verify current requirements with the relevant regulatory body before launching.

Promoting the giveaway

Marketing plays a key role in a giveaway’s success, but promotional activity must remain compliant.

Effective marketing strategies

  • Promote the giveaway across the website, email and social channels

  • Use paid advertising or influencer partnerships

  • Encourage user-generated content to increase reach

Social media considerations

Platforms such as Facebook, Instagram and TikTok have rules governing promotions. These may require:

  • Clear statements about platform non-sponsorship

  • Restrictions on tagging and sharing requirements

  • Transparency around judging or voting

Advertising compliance

All promotional material must:

  • Accurately describe the giveaway

  • Disclose key eligibility or entry restrictions

  • Identify any sponsorships or partnerships

  • Avoid misleading or deceptive claims

A compliant promotion not only protects the business from legal issues but also builds trust and credibility with participants.

Trade promotion & competition questions? We have answers.

Trade Promotions

What is a trade promotion?

A trade promotion is a free-to-enter competition run by a business to promote its products or services. They must comply with state and territory regulations, Australian Consumer Law and consumer protection laws to ensure fairness and transparency.

Do I need a permit to run a trade promotion in Australia?

It depends on the type of promotion and the prize pool. Games of skill never require a permit. Games of chance may require permits depending on where the promotion is conducted and the total prize value, with different thresholds applying in NSW, VIC, SA and the ACT.

What are the two types of trade promotions?

Trade promotions are either games of skill, where winners are judged on merit, or games of chance, where winners are selected randomly. The type you run determines your permit obligations, draw requirements and how winners must be selected.

What happens if I don't comply with trade promotion laws?

Non-compliance can result in fines, enforcement action by state regulators, and reputational damage. Penalties vary by state, for example, running an unlicensed game of chance in NSW or Victoria can result in significant financial penalties.

What prizes can I offer in a trade promotion?

Prizes can include cash, gift cards, products, experiences or services. The retail value of the prize must be accurately stated, as this is used to determine whether state-based trade promotion permits are required.

Competitions

What is the difference between a game of skill and a game of chance?

In a game of skill, the winner is chosen based on merit, such as a creative answer or photo submission and no permit is required. In a game of chance, winners are selected randomly (e.g. a prize draw), and permits may be required depending on the prize pool and states involved.

Do social media competitions need terms and conditions?

Yes. All social media competitions require clear terms and conditions covering eligibility, entry steps, prize details, winner selection and platform-specific disclosures. For example, Instagram requires a release of Meta from every participant, and Facebook prohibits requiring page likes as an entry condition.

When do I need a permit to run a competition?

A permit is required for games of chance when the prize pool exceeds certain thresholds in regulated states. For national promotions, an ACT permit is required for prize pools over $3,000, and SA may also require a permit if printed scratch-and-win cards are used. NSW requires an ongoing authority for prize pools over $10,000.

Can I run a competition on TikTok or Instagram?

Yes, but you must comply with both Australian law and each platform's promotional guidelines. This includes drafting compliant terms and conditions, disclosing that the promotion is not sponsored by the platform, restricting entries to original content, and following age and eligibility requirements.

How do I draw a winner compliantly?

For games of chance, draws must be conducted using a verifiably random method, such as electronic randomisation, at a specified time and location. An unclaimed prize draw is typically required two months after the original draw for national campaigns.