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Side business while being employeed

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Newbie

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Hi there i currently have a hobby i was thinking of changing into a side business in the new year as i would like to get more serious with it. I am currently employed full time and will be staying in this job while running my small business.

My question is, when it comes to tax time what do i need to do in relation to my business? I normally do my tax online myself through mygov. Is there a threshold i need to reach before i need to include any business income in my tax? eg. if i only make $100 profit in the first year do i include this? I have been googling and reading alot of webpages but i havnt found my answer.

If you could please help answer my question and any other relevant information you think may be helpful.

 

Thank you, Claudia

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 2

@Claudiac 

 

If it is a business and being run in a business like manner then all income and deductions get recorded under item 15 Business.

 

Doesn't matter if you make money of lost money.

 

If you lost money, then this would be carried forward and used to offset the following years business income and so on.

 

3 REPLIES 3

Most helpful response

Taxicorn

Replies 2

@Claudiac 

 

If it is a business and being run in a business like manner then all income and deductions get recorded under item 15 Business.

 

Doesn't matter if you make money of lost money.

 

If you lost money, then this would be carried forward and used to offset the following years business income and so on.

 

Newbie

Replies 1

@macfanboy 

 

Okay thank you, what is Item 15 Business? Sorry this is all new to me and im trying to consider everything before i decide what to do.

Is that a section on my tax return?

ATO Certified Response

Taxicorn

Replies 0

@Claudiac 

 

Yes, sorry it is under income.

 

You will probably need an ABN (which are free so don't pay for it !!)

 

https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Are-you-in-busines...