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Tax Implications Regarding Youtube Revenue

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Hi, I have a question surrounding youtube revenue I receive (approximately $150 AUD per month). At the moment I treat it as more of a hobby along side my full time job but I plan to take it more seriously in a couple of years time.

Apart from the investment of time, there’s also an associated financial cost for equipment, software and gear required to make content. I wanted to know;

1) At what stage is this hobby defined as a job?

2) Does this revenue (approx $1800-$2000) need to be declared during tax time? and

3) Am I able to make any tax deductions for the equipment I purchase from the taxable income from my full time job?

I tried searching the forums for an answer to my question but could not find one.

Thanks!
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1) At what stage is this hobby defined as a job?

This is subjective so there's no bright-line test. Generally depends on how you approach it, intention to generate revenue, whether you have a business stratergy, what equipment and resources you are devoting to the project etc. Depending on the factors, it's either a hobby or a business.

 

2) Does this revenue (approx $1800-$2000) need to be declared during tax time? and

Hobby - no. Business - yes. see here - you need to complete the Business and Professional Items schedule in your tax return.


3) Am I able to make any tax deductions for the equipment I purchase from the taxable income from my full time job?

Yes (either over time as depreciation or immediately) - you need to look at your content creation business separately from your "job" - being employment income.

 

You might also want to be aware of the non-commercial loss rules which stops your business income from being able to offset your emplyment income. (you carry it forward instead)

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Best answer

ATO Certified

Devotee

Replies 2

1) At what stage is this hobby defined as a job?

This is subjective so there's no bright-line test. Generally depends on how you approach it, intention to generate revenue, whether you have a business stratergy, what equipment and resources you are devoting to the project etc. Depending on the factors, it's either a hobby or a business.

 

2) Does this revenue (approx $1800-$2000) need to be declared during tax time? and

Hobby - no. Business - yes. see here - you need to complete the Business and Professional Items schedule in your tax return.


3) Am I able to make any tax deductions for the equipment I purchase from the taxable income from my full time job?

Yes (either over time as depreciation or immediately) - you need to look at your content creation business separately from your "job" - being employment income.

 

You might also want to be aware of the non-commercial loss rules which stops your business income from being able to offset your emplyment income. (you carry it forward instead)

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I'm new

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Hi, 

I too receive youtube revenue and whilst it's a hobby to create content on youtube, it's growing in revenue now, averaging $3000 per month.

 

The answer to the question below is a little confusing.

The part where you say.. "Generally depends on how you approach it, intention to generate revenue"

 

Well, anyone who receives youtube revenue had the intention to generate revenue as you need to opt in to the feature once you reach certain criteria, youtube don't automatically place ads on your video's, we need to action that ourselves and choose to monetise.

So isn't that Intention to generate?

Therefore no-one earning on youtube is doing it as a hobby if the intention is there to generate income.

So, I was wondering if that comment is actually legimate or incorrectly worded?

 

 

1) At what stage is this hobby defined as a job?

This is subjective so there's no bright-line test. Generally depends on how you approach it, intention to generate revenue, whether you have a business stratergy, what equipment and resources you are devoting to the project etc. Depending on the factors, it's either a hobby or a business.

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Community Support

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Hi @Ben68 ,

 

Thanks for your question and I apologise for the delay in responding.

 

Our income tax system is based on Self-assessment, we can't determine whether your activities are in the form of a business or a hobby.

 

The below links provide information and tools to help you come to an assessment:

 

You can apply for a private ruling when you want to be certain how a tax law applies to your particular circumstances.

 

I hope this information helps,

JasonT