“Like, comment and tag a friend to win!” Social media giveaways are a popular way for small businesses to grow their audience. They can work well. But in Australia, giveaways are trade promotions, and some states and territories have permit requirements. The platforms have their own rules too.
This guide covers the basics a small business should know before running a giveaway. It is general information, and rules change, so check the current requirements with each regulator or get advice for larger promotions.
Game of chance or game of skill?
The first question is how the winner is chosen.
- Game of chance: the winner is drawn at random, such as “comment to enter and we will draw a winner”.
- Game of skill: entries are judged on merit, such as “tell us in 25 words or less why you love our café”.
Games of skill generally don’t need permits in Australia, although they still need clear terms and fair judging. Games of chance are where permit rules can apply.
Permits for games of chance
At the time of writing, most states don’t require a permit for a trade promotion game of chance. Three jurisdictions can:
- New South Wales: an authority is required when the total prize pool is more than $10,000.
- South Australia: a permit is generally required when the total prize pool is more than $5,000.
- Australian Capital Territory: a permit is required when the total prize value is more than $3,000.
If your giveaway is open to people in those places, which is almost always the case online, their rules can apply even if your business is in Victoria. Many small giveaways fall under these thresholds, but other conditions, such as having proper terms, still apply. Check the current rules with each regulator before you launch.
Write clear terms and conditions
Every giveaway should have terms that entrants can read before entering. They typically cover:
- Who is running the promotion, with contact details.
- Who can enter, including any age or location limits.
- How to enter and the entry period, with start and end dates and times.
- The prize, its value and any conditions.
- How and when the winner will be chosen and notified.
- How long the winner has to claim the prize, and what happens if they don’t.
- How entrants’ personal information will be used.
Link to the terms from the post, or host them on your website.
Follow the platform’s rules
Meta’s Page terms include specific rules for promotions on Facebook. For example, promotions must include an acknowledgement that the promotion is not sponsored or administered by Facebook, and you can’t require people to share a post on their own timeline, or tag friends, as a condition of entry. Instagram has its own rules, including not encouraging people to tag content inaccurately.
Check the current rules for each platform before running a promotion, because they change and breaking them can affect your account.
Be honest in how you promote it
Under the Australian Consumer Law, promotions must not be misleading. Describe the prize accurately, don’t exaggerate its value and make sure any conditions are clear upfront. Draw the winner fairly, as described in your terms. Our guide to misleading advertising explains the wider rules.
Handle personal information properly
If you collect names, emails or phone numbers, only use them as your terms say. If you want to add entrants to your marketing list, get clear consent. Entering a giveaway isn’t automatically permission to email people. See our guide to email marketing and the Spam Act.
Make the giveaway worth it
Legal compliance aside, a good giveaway attracts the right people. Some tips:
- Offer a prize your ideal customers want, ideally your own product or service, rather than a generic gift card that attracts prize hunters.
- Partner with another local business to reach a new audience.
- Keep entry simple.
- Announce the winner publicly, with their permission, to show the giveaway was genuine.
Judge success on new followers who stay and engage, and enquiries afterwards, not just the number of entries.
Want help running a giveaway?
Madexify plans and runs social media campaigns for small businesses across Pakenham, Officer, Beaconsfield, Berwick, Narre Warren, Cranbourne, Clyde and Bunyip, including giveaways with clear terms. See our social media marketing services, or contact us to talk about your next promotion.
Sources: ACT Gambling and Racing Commission: trade promotions; Anisimoff: NSW trade promotion lottery authorities; Meta: Pages, Groups and Events policies. Accessed 26 September 2026. This article is general information, not legal advice.
This article is part of our Social Media Marketing Guide. Browse all our guides on the guides page.
