When a hobby becomes a business
Taxpayers may not think they are running a business from their hobby or 'side hustle' activities. However, if they start to earn money from doing these activities regularly, they may be carrying on a business without realising it.
Generally, carrying on a business involves ongoing and repeated activities with the intention of making a profit. These activities can include:
- regularly providing goods or services;
- obtaining and maintaining any necessary licences or permits; and/or
- keeping records of their work.
However, a taxpayer's activities may indicate that they are not operating a business where:
- their transactions are one-off;
- they do not intend to make a profit; and/or
- they work solely as an employee rather than independently.
Please keep us informed of all your income-earning and side hustle activities so we can help with this distinction. Call us on 1300 363 866, or please send your questions to us via our Contact Us page.
General Advice Warning
The information provided in this article is for general information purposes only and is not intended to and does not constitute formal
taxation, financial or accounting advice. McConachie Stedman does not give any guarantee, warranty or make any representation that the
information is fit for a particular purpose. As such, you should not make any investment or other financial decision in reliance upon the
information set out in this correspondence and should seek professional advice on the financial, legal and taxation implications before
making any such decisions.