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Millimeter(Newbie)Newbie
22 Oct 2023

Hi,


I am a creator of a newsletter, free mobile apps and printed mini-magazines.


I started doing this as a hobby (currently have a full time job on top) and recently I have created an account on Ko-fi (similar to Patreon & Buy me a Coffee) so that people who like my work can make small donations.


I am thinking of monetising this down the line (paid subscriptions for newsletter etc) but currently all of my products and services are free.


  1. Do I need an ABN?
  2. Do I need to add the donations in my tax declaration?
  3. Do I need to register as a sole trader/ business currently?
  4. I am on work visa, would there be any impact of that on this and my potential business/ sole trader activities?


Also, when I do get to the point of monetising my services and products, should I go down the Sole Trader route or establish a business?


I'm really confused about all of this (not from a business background) and don't want to do any illegal things accidentally!



Thank you for your help!

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1,519 views
1 replies

Most helpful response

Most helpful reply

WendyATO(Community Support)Community Support
24 Oct 2023

Hi @Millimeter,


Doing something as hobby and potentially turning it into a business is quite different. So, I do understand why you would be confused.


You're asking all the right questions, but I cannot advise whether you need an ABN or what business structure to use.


I can though provide information that should make it clearer for you to answer yourself. If you're still not sure, then I suggest speaking to a tax professional.


Firstly, we have a great news article called tax tips for managing your side hustle. It discusses and provides a link to help you self-determine whether your side hustle is a business.


If you determine you're a business and check if you're entitled to an ABN. Then yes you will need to add your donations in your tax return.


Again, you will need to self-determine whether you need an ABN for your current situation where you're not receiving donations.


There also information on the business government site about difference between a business and a hobby that might be helpful.


You will need to check with Department of Home Affairs if your visa allows you to work as a sole trader.


Also, we have a handy page about the types of business structures i.e. sole trader, company and what your key tax obligations are.


Just take your time to go through what I have provided. As it can be information overload.


All best in your future endeavours!







All replies

Most helpful reply

WendyATO(Community Support)Community Support
24 Oct 2023

Hi @Millimeter,


Doing something as hobby and potentially turning it into a business is quite different. So, I do understand why you would be confused.


You're asking all the right questions, but I cannot advise whether you need an ABN or what business structure to use.


I can though provide information that should make it clearer for you to answer yourself. If you're still not sure, then I suggest speaking to a tax professional.


Firstly, we have a great news article called tax tips for managing your side hustle. It discusses and provides a link to help you self-determine whether your side hustle is a business.


If you determine you're a business and check if you're entitled to an ABN. Then yes you will need to add your donations in your tax return.


Again, you will need to self-determine whether you need an ABN for your current situation where you're not receiving donations.


There also information on the business government site about difference between a business and a hobby that might be helpful.


You will need to check with Department of Home Affairs if your visa allows you to work as a sole trader.


Also, we have a handy page about the types of business structures i.e. sole trader, company and what your key tax obligations are.


Just take your time to go through what I have provided. As it can be information overload.


All best in your future endeavours!







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