Author: CanMan(Newbie)Newbie 8 Dec 2022
Thanks Chantelle.
This is where I am not sure.
When i started doing this, it was definitely a hobby. I started doing it with my kids at home to teach them saving skills and how small amounts each week can turn in to something bigger, and also to teach them about sustainability as they were learning about this at school. I then had the idea that I could help to fundraise for the sports clubs that my kids are part of. As we are not wealthy, I had agreements put in place with each club to ensure i did not end up out of pocket, hence the split of the proceeds. I have never advertised but through word of mouth a few extra clubs have asked me if I could help them which I said I would, as I am very passionate about ensuring kids get opportunities to be involved in sport.
Because I was worried about tax I kept records and declared them to be on the safe side as I could not afford for the tax department to make a decision that this money was tax deductable. The process is repeatable in the sense i do it every week for each of the organisations.
I have declared this for a couple of years now, out of fear of being assessed that it is a business activity and not a hobby and ending up being slugged with a bill i can not afford. I would obviously rather use this money to further support the kids sport but am too scared to not declare it
Author: JodieR_ATO(Community Support)Community Support 13 Dec 2022
Hi @CanMan,
When determining if this is a business or a hobby, there are a few factors to consider, including your intent to turn a profit. We've answered a similar post on our forum, you can view our response from here.
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