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Re: Hobby for pocket money in retirement

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Hi

 

I'm planning to retire next year.  I'll be 60 and I'll receive a super-funded pension.  I understand that I don't have to declare my super pension on a tax return.  If my hobby earns me some extra "pocket money" (it will definitely NOT exceed the $18,000 tax-free threshold) is it a hobby or do I have to declare the income?  I'm thinking the hobby will pay its own way with a small return to me for my efforts.

 

I'm happy to look into this with a tax agent when I do retire but I'm just trying to plan ahead and know where I might stand.

 

Thanks in advance ...

 

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ATO Certified

Devotee

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Hi @ub60 

 

In addition to what @macfanboy has said, you can find more information on the ATO website to help you determine whether you're in business or just pursuing a hobby for tax purposes.

 

Also, note that not all retirement pensions are tax-free; it can depend on the type of benefits you receive and the amount of your annual benefits. You can find more information on the ATO website about how tax applies to your super when you retire or confirm with your fund.

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

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Taxicorn

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It all basically depends on a few things, these include:

(1) Is your intention to make a profit?

(2) Do you go about it in a business-like manner?

(3) Do you do it regularly?

(4) Do you advertise?

 

Have a read of this https://www.business.gov.au/planning/new-businesses/a-business-or-a-hobby/

 

Also, try the online test found there.

 

 

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ATO Certified

Devotee

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Hi @ub60 

 

In addition to what @macfanboy has said, you can find more information on the ATO website to help you determine whether you're in business or just pursuing a hobby for tax purposes.

 

Also, note that not all retirement pensions are tax-free; it can depend on the type of benefits you receive and the amount of your annual benefits. You can find more information on the ATO website about how tax applies to your super when you retire or confirm with your fund.

 

JF

 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

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