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seasebsketches(Newbie)Newbie
13 July 2024

Hello,


I am an artist based in Australia and I have been painting as a hobby for quite some time. I have never sold anything yet. I have been receiving a growing interest in selling prints of my artworks on Etsy via a print on demand system. I don't really understand how it works when it comes to Tax, GST, ABN etc. It is unclear from the information I read online from the ATO website whether this will be considered a hobby or business, knowing that a print on demand store will be some sort of passive income I guess.


Do I need an ABN? This store will not be my main stream of income and it would most likely be well below the $75,000 annual income threshold.


This is also a very general question but how will it work when it comes to tax returns? (e.g. Business VS Hobby)


What will be the difference between a print on demand system based overseas (e.g. US) versus based in Australia?


Kind regards,

Seb

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542 views
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Most helpful reply

Taxduck(Taxicorn)Taxicorn
13 July 2024

If your intention is to sell prints then it is no longer a hobby. A small business with turnover likely to be under $75,000 per year then there is no requirement to register for GST. There may be benefits in being registered for GST as overseas sales are generally GST free.

If you know little about the tax system, you will need to either become well acquainted with it or seek the services of a tax agent to help you. The ATO website has lots of information for those starting off in business.

Starting your own business | Australian Taxation Office (ato.gov.au)

Do I need an ABN? A common question. You can operate a business without but you may find you will need to obtain one depending on how you sell your goods, the demands of any third party you are selling through, the clients requirements, and so on. Usually an ABN is recommended. Easy to obtain as a sole trader through abr.gov.au

Come tax time, income and expenses are entered into the business schedule of myTax. Important to keep good records of income earned and expenses incurred. (must be kept for 5 years)

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
13 July 2024

If your intention is to sell prints then it is no longer a hobby. A small business with turnover likely to be under $75,000 per year then there is no requirement to register for GST. There may be benefits in being registered for GST as overseas sales are generally GST free.

If you know little about the tax system, you will need to either become well acquainted with it or seek the services of a tax agent to help you. The ATO website has lots of information for those starting off in business.

Starting your own business | Australian Taxation Office (ato.gov.au)

Do I need an ABN? A common question. You can operate a business without but you may find you will need to obtain one depending on how you sell your goods, the demands of any third party you are selling through, the clients requirements, and so on. Usually an ABN is recommended. Easy to obtain as a sole trader through abr.gov.au

Come tax time, income and expenses are entered into the business schedule of myTax. Important to keep good records of income earned and expenses incurred. (must be kept for 5 years)

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