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Re: Hobby or a business - online selling

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Just concerned there is conflicting information out there.

 

What is the limit for sales or money made that tips a Hobby into a Business.

I have read somewhere $10k others $20k

 

I have an account on ebay (not a store, no paid membership) only payment made is fees on selling items (to ebay & paypal)
I dont have an ABN or registered business.

I sell unused things from around my house maily clothing. 

Part of the items I have for sale are a collection of clothing from other family members, myself and friends.

The items are different brands and sizes.

 

Items are being sold at significantly less than original RRP of the items.

 

I have read through a few documents on ATO and other pages which ask a few prompting questions and I'm still unsure. I dont class myself as a business in my thoughts however concerned ATO may see it differently.

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There is no limit on the amount of money earned that qualifies your activities as a business or a hobby.

 

From your reported activities, it would seem that you are carrying on a business.

You appear to be trying to make money on excess clothing that would be considered excessive.

 

Read/Watch This

 

https://www.business.gov.au/planning/new-businesses/a-business-or-a-hobby

 

Also be aware that as a business there will, of course, be allowable deductions that will reduce the profit.

 

 

 

1 REPLY 1
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Best answer

ATO Certified

Devotee

Replies 0

There is no limit on the amount of money earned that qualifies your activities as a business or a hobby.

 

From your reported activities, it would seem that you are carrying on a business.

You appear to be trying to make money on excess clothing that would be considered excessive.

 

Read/Watch This

 

https://www.business.gov.au/planning/new-businesses/a-business-or-a-hobby

 

Also be aware that as a business there will, of course, be allowable deductions that will reduce the profit.

 

 

 

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