Turning a hobby into income? You might be in business

Find out if your hobby or side hustle activities means you’re in business.

You might not think you’re running a business from your hobby or side hustle activities. If you’re starting to earn money from doing these activities regularly, you 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:

• keeping records of your work
• obtaining and maintaining any necessary licences or permits
• regularly providing goods or services.

On the other hand, your activities may indicate that you’re not operating a business where:

• your transactions are one-off
• you don’t intend to make a profit
• you work solely as an employee rather than independently.

Need more information to help you get it right and meet your tax obligations?

Visit ATO’s website to work out if you Are you in business?

You can also watch the Tax Basics for Small Business video for clear, practical guidance on checking your status and what you need to do if you are in business.

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Source: ATO