Hi,
I've had a look and done a lot research on hobby or business in regards to ATO and tax but I'm still confused when it comes to something I am interested in doing.
I'm interested in starting to sell worn socks online - I think it could be something fun to do in my spare time. I wear socks daily, there are people interested in buying used/worn socks, i might be able to get a couple of extra dollars from selling the socks I've worn, so why not? The issue is I don't know if it would be considered a hobby or business?
I would see it a hobby, as I see it as recreational, I will be doing it when I want it too (not intending to make this a full time thing or source of income), it will be small scale, not run from a premises, and wont be run like a business (no advertising, receipts, records, no abn, no business name or separate bank account). BUT would the ATO see this as a business?
I ask this because I would have to sell online threw a marketplace or online store like Etsy or Sofia Gray. For example, Sofia Gray you have pay a fee to sell threw there website and it's creates your own page on there site and you can message buyers or they can reach out to for specific requests, etc. Etsy they have listing fees and take a percentage of sales, but it's a marketplace where you advertise what you are selling. Because on the aTO website it does say things about having an online shop, paying to have online selling presence, etc.
I want to do the right thing, legally and tax, and don't want to get in trouble by accidently doing the wrong thing. I'd rather not have to get an ABN for privacy reasons, which you have to get if you are running a business.
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