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Can I use a Label/Brand if I consider my activities a hobby?

Newbie

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Replies 5

Hi,

 

I believe my activity is a hobby rather than a business. Can I advertise items using a label/brand without being a business and registering a business name? I tried to find this on the ATO website but it was unclear.

 

Thanks!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Devotee

Replies 2

Hi @Meags,

Thanks for getting in touch. There is no single test to determine if you're carrying on a business. Features of a business include:

  • the activity is a significant commercial activity, involving commercial sales of products or services, and is of a reasonable size and scale
  • there is an intention to make a profit from the activity as demonstrated by a business plan – unlike with a hobby
  • the activity is repeated
  • the activity is systematic, organised and carried on in a business-like way and records are kept
  • the activity is carried on in a similar way to that of other businesses in the same or similar industry
  • the entity has relevant knowledge or skill.

If you're not sure whether your activities are business-like in nature, we'd encourage you to consider contacting our early engagement team to discuss your situation in more detail or seeking the services of a registered tax professional for advice.

 

Thanks

5 REPLIES 5

Taxicorn

Replies 1

Why do you believe it is a hobby?

 

If you are advertising ten it sounds like a business.

 

Hobby: I make jam, it costs me $1000 to make 500 jars. I sell it to friends and family for about $1200.

I don't advertise it and it is only sold occasionally. Basically I am making back what it costs me with sometimes a minor profit.

 

If your intent is to make a profit then it is a business.

 

 

 

Newbie

Replies 0

I am not particularly advertising to sell but would be using the 'brand name' to put on photography to identify it when posting it online. I believe it would be a hobby rather than a busniess because no profit will be made. I'm just not sure if I can use a 'brand name' without having it as a registered business name.

Most helpful response

ATO Certified Response

Devotee

Replies 2

Hi @Meags,

Thanks for getting in touch. There is no single test to determine if you're carrying on a business. Features of a business include:

  • the activity is a significant commercial activity, involving commercial sales of products or services, and is of a reasonable size and scale
  • there is an intention to make a profit from the activity as demonstrated by a business plan – unlike with a hobby
  • the activity is repeated
  • the activity is systematic, organised and carried on in a business-like way and records are kept
  • the activity is carried on in a similar way to that of other businesses in the same or similar industry
  • the entity has relevant knowledge or skill.

If you're not sure whether your activities are business-like in nature, we'd encourage you to consider contacting our early engagement team to discuss your situation in more detail or seeking the services of a registered tax professional for advice.

 

Thanks

Newbie

Replies 1

Thanks AmandaE,

 

I've already determined that the activity is a business and not a hobby. What i'm wanting to know is if I can post photos from the hobby online using a 'brand name' without registering it as a business name.

 

Cheers,

Devotee

Replies 0

Hi @Meags,

 

We can help you find information on the tax side of things, but if you're looking for information on whether you need to register a business name it's best to check out the information provided by the Australian Securities and Investment Commission (ASIC). ASIC administers business name registrations, and have some great guides to help you work out how to move forward.

 

Thanks.