Set for Life: The Complete Australian Guide
Set for Life is the most misunderstood lottery game in Australia. The top prize looks smaller than Powerball or Saturday Lotto when you first see it, but that comparison misses the point entirely. Set for Life does not pay a lump sum. It pays you an income.
What is Set for Life?
Set for Life is a daily lottery operated by The Lott. Draws happen every night at 9:00pm AEST. You pick 7 numbers from a pool of 1 to 44, with 2 supplementary numbers also drawn. The game has been running in various forms since the 1990s.
The Division 1 prize is $20,000 per month for 20 years. That is $4.8 million in total, paid out over two decades. Division 2 pays $5,000 per month for 12 months, totalling $60,000.
Prize divisions
| Division | Match | Prize |
|---|---|---|
| 1 | 7 main numbers | $20,000/month for 20 years |
| 2 | 6 main + 1 supplementary | $5,000/month for 12 months |
| 3 | 6 main numbers | $5,000 |
| 4 | 5 main + 1 supplementary | $500 |
| 5 | 5 main numbers | $100 |
| 6 | 4 main numbers | $30 |
| 7 | 3 main + 1 supplementary | $20 |
| 8 | 3 main numbers | $15 |
Prizes for Division 3 and below are set amounts. The monthly prize structure applies only to Divisions 1 and 2.
How the monthly payments actually work
Division 1 winners receive $20,000 per month for 20 years. Payments start shortly after the claim is verified. The total over 20 years is $4,800,000.
One important point: these payments are not annuities in the insurance sense. They are structured payments from The Lott, not from an investment product. There is no lump-sum buyout option once you have won. You receive the payments on schedule.
If the winner dies before 20 years is up, remaining payments typically pass to the winner's estate. The specific terms depend on the operator's conditions at the time of the win.
The odds
| Division | Approximate odds |
|---|---|
| 1 (jackpot) | 1 in 38,608,020 |
| 2 | 1 in 3,553,200 |
| 3 | 1 in 197,400 |
| 4 | 1 in 11,860 |
| 5 | 1 in 1,700 |
| 6 | 1 in 316 |
| 7 | 1 in 105 |
| 8 | 1 in 53 |
The overall odds of winning any prize are approximately 1 in 40, which is competitive with other Australian lottery games.
Tax treatment
Lottery winnings in Australia are not taxable income. The $20,000 monthly payments are not income for tax purposes because they are windfalls, not earnings.
However, if you invest or deposit the monthly payments, the returns on those investments are taxable. Interest from a savings account, dividends from shares, or rent from an investment property bought with prize money are all assessable income.
The payments themselves are also not subject to goods and services tax (GST).
Tax law can change and individual circumstances vary significantly. If you win, get independent advice from an accountant or tax professional before spending or investing anything.
Centrelink and the Age Pension
This is the part almost nobody covers properly. Lottery winnings are not income for tax purposes, but they absolutely are assessable assets for Centrelink means testing. This distinction matters enormously for people receiving the Age Pension, JobSeeker, or other government payments.
With Set for Life specifically, each $20,000 payment you receive is a cash asset from the moment it lands in your account. Once invested or held as savings, it is subject to the assets test and the deeming rules under the income test.
For an Age Pension recipient, receiving $20,000 per month will almost certainly push you over the assets test thresholds and reduce or eliminate your pension. Services Australia (formerly Centrelink) will need to be notified within 14 days of a change in circumstances.
Centrelink implications can be significant and complex. If you receive any government payment, speak to a financial counsellor or Services Australia before making any decisions after a win.
Set for Life vs other Australian games
The comparison that matters most is this: what is the top prize actually worth?
Set for Life Division 1 pays $4.8 million over 20 years. Powerball routinely jackpots above $50 million, and has paid over $150 million in a single draw. In pure dollar terms, Set for Life is a smaller prize.
But Set for Life draws happen every single day, not once a week. That means 365 chances per year to win Division 1, compared to 52 for Saturday Lotto or Powerball.
The Division 1 odds for Set for Life are 1 in 38,608,020. Powerball is 1 in 134,490,400. Saturday Lotto is 1 in 8,145,060. So Set for Life sits in the middle on difficulty but draws every day.
The income structure also makes Set for Life different in character. A lump sum from Powerball requires financial management immediately. A monthly income of $20,000 is easier to absorb without making large, potentially poor financial decisions under pressure.
Strategic considerations
The same prize-sharing dynamics that affect other games apply to Set for Life. Popular number combinations, birthday-heavy picks, and arithmetic sequences all mean more potential co-winners in Division 1. Since Division 1 is capped at one winner per draw (The Lott only pays one Division 1 prize per night), prize sharing is handled differently. If multiple tickets match, each receives the full prize.
Check the official Set for Life conditions with The Lott, as the prize structure can change.
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