Announcements
Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
Still not sure? Ask the Community

ATO Community

Referee hobby income

I'm new

Views 357

Replies 1

Hi, I have a few questions related to the same topic, so will ask them all together.

 

My teenaged daughter plays basketball and intends to start reffing this year. Refs are paid, but are required to fill out a hobby declaration stating that they are undertaking a hobby and as such under tax law any payment from this is not subject to withholding tax.

 

My questions: 

1) does that mean it isn't taxable income, or just that the organisation don't withhold tax?

2) will she require a tax file number if this is the only money she earns (she is 13)

3) does a child's pay impact a parent's tax (not worried about centrelink)?

4) if I were to take on some games as a ref (they are quite desperately short, and I play so it would be a serious consideration) I would also have to fill out the hobby declaration, so would that still add to my taxable income? Obviously my daughter would be under the tax free threshold, but I would not.

 

Thank you for your help.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Neejchee,

 

Thank you for joining ATO Community, I will address each of your questions in the order you have asked them.

 

1. If you are not being paid through a TFN then you need to determine if the income is being earned as a Hobby. We have information available on our website under Are you in business? to help you make a determination.

 

If the activity is classed as a Hobby then you will not need to report the income in your tax return.

 

2. If this is the only income your daughter earns and it's determined to be a hobby she will not require a Tax File Number.

 

3. Each individual is liable for their own taxes. So your daughters income if reportable, will have no bearing on your tax return. Meaning you don't need to include her earnings in your return.

 

4. The same answer would apply as did to question 1. If classed as a hobby you will not need to report your income from refereeing in your tax return.

 

Links

Are you in business?

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Neejchee,

 

Thank you for joining ATO Community, I will address each of your questions in the order you have asked them.

 

1. If you are not being paid through a TFN then you need to determine if the income is being earned as a Hobby. We have information available on our website under Are you in business? to help you make a determination.

 

If the activity is classed as a Hobby then you will not need to report the income in your tax return.

 

2. If this is the only income your daughter earns and it's determined to be a hobby she will not require a Tax File Number.

 

3. Each individual is liable for their own taxes. So your daughters income if reportable, will have no bearing on your tax return. Meaning you don't need to include her earnings in your return.

 

4. The same answer would apply as did to question 1. If classed as a hobby you will not need to report your income from refereeing in your tax return.

 

Links

Are you in business?