Self Published Author Hobby or Not?

 Author: TonyATO(Community Support)Community Support

5 Mar 2021

Hello @Redback1853

It is up to you to self-assess whether you are in business or not, but based on the information you have provided, it sounds like more of a hobby. Even if this is the case, you will need to declare any income you make in your tax return.

If you are in business, you can claim business expenses in the year you incurred the expense.

You may also be subject to income averaging (concessional tax treatment) as a special professional.

Some of the key differences between a hobby and business are:

Hobby

• you gain personal enjoyment and satisfaction from the activity.

• you gift or sell your work for the cost of materials.

• you do it in your own time or when people contact you.

• you have no reporting obligations of a business.

Business

• the activity you undertake is for commercial reasons

• your main intention, purpose or prospect is to make a profit

• you regularly undertake your activity

• your activity is planned, organised and carried out in a businesslike manner

I highly recommend having a look at the following information:

• Are you in business?

• Income that you show on the supplementary section

• Business and professional items

• Income averaging for special professionals

• Business tax deductions

I wish you all the best :)

TonyATO