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I used to sell jewellery at my local markets, but a friend of mine is helping me set up a store on Etsy. Do I need to put any of the income I make from my Etsy sales on my tax return?
Most helpful response
ATO Certified Response
on 28 April 2017 12:21 PM
Great question, @Peridot-dreams! If you’re running a business, then yes, you’ll need to include that income on your tax return – but if your jewellery-making is just a hobby, then no, you won’t.
It can be tricky sometimes to work out if your hobby is actually a business. There is no one “thing” that decides if you’re running a business – we usually look at a few different factors to help us work it out.
You’re probably in business if:
Once you start running a business, you’ll need to make sure you have all your registrations in place. @Wizzzzard's point – that you’re in business if you’re earning more than $75,000 a year – probably relates GST registration rules.
Check out https://www.ato.gov.au/business/starting-your-own-business for more information about business registrations and reporting.
If your jewellery-making is a hobby, then you don’t have to declare any earnings on your tax return or lodge activity statements. However, if you supply items or services to a business as part of your hobby, that business has to ask for an ABN when they pay you and may need to withhold more tax from your payment. Have a look at https://www.ato.gov.au/business/starting-your-own-business/before-you-get-started/are-you-in-busines... to find out more.
Hope that helps! BreeH
I never did – it’s just a hobby, right? I asked someone when I was selling upcycled furniture, and they said that as long as I didn’t earn more than $75K I didn’t need to do anything about it.