Is it a Hobby or a Business?
A hobby is a spare-time activity or pastime pursued for pleasure or recreation; and
A business generally requires some form of investment and enough customers to whom its products or services can be sold on a consistent basis with a profit-making intention.
The distinction between a hobby and a business is important as the carrying on of a business requires a taxpayer to: declare sales income, claim tax deductible expenses, keep accurate records, register for an ABN and register for GST if turnover reaches $75,000 or more in the financial year.
If you are merely pursuing a hobby, you do not need to report the income from the hobby.
Go to my website for access to the Tax Office’s guide to determine whether your activity is a hobby or a business, or contact me for assistance.