Hobby or business
There are important differences between doing an activity as a hobby and doing it as a business.
If your activity is considered a business, you have extra responsibilities. This includes tax and reporting requirements. As a business owner, you must make sure you meet these obligations.
The Australian Taxation Office lists the following as possible indicators you are running a business:
- you have an ABN or registered business name
- you intend to make a profit
- you repeat similar types of activities
- the size or scale of your activity is consistent with other businesses in your industry
- your activity is planned, organised and carried out in a businesslike manner.
Check your activity
Use the Australian Government's business or hobby tool to understand their differences and responsibilities.
Watch the videos on the Australian Taxation Office website to work out if you are in business.
If you're still unsure
You can pay for independent legal or business advice from:
- accountants
- solicitors
- business consultants.
More information
Get tax information in a range of languages on the Australian Taxation Office website.