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Re: Hoody or sole trader

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Hi, I have been asked to do upkeep on a bowling green for a small bowling club, they have offered to pay me as a contractor or sole trader for limited and non set hours. The hours would be on a needs basis and I would also do some voluntry hours as I play bowls myself. I would like to know what my tax obligations would I be a sole trader or could I be classed as a hobby.  I also have other part time employment.

Murray

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ATO Certified

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Hi @Murray62,

 

Welcome to our Community!

 

We can provide general information here to help you work out if the work you'll be doing is considered a hobby or business. You can find information to help work out are you in business and a business or a hobby? on business.gov.au website.

 

If you're a business, you'll need to apply for an ABN and report all income and expenses in your tax return. If the activity is considered a hobby then you don't have any additional tax or reporting obligations. 

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Taxicorn

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If they are paying you then you need to declare it.

Doesn't matter if you are a contractoror sole trader.

Income is income and needs to be reported.

You then of course could claim any work related expenses as deductions.

 

 

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Enthusiast

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Part of the consideration is whether you intend to make a profit, or whether this is something you do just for leisure and are paid for just to cover costs.

 

The best page I could find to elaborate on your situation is here on Business.gov.au

(https://www.business.gov.au/planning/new-businesses/a-business-or-a-hobby/)

 

All the best.

Best answer

ATO Certified

Community Support

Replies 0

Hi @Murray62,

 

Welcome to our Community!

 

We can provide general information here to help you work out if the work you'll be doing is considered a hobby or business. You can find information to help work out are you in business and a business or a hobby? on business.gov.au website.

 

If you're a business, you'll need to apply for an ABN and report all income and expenses in your tax return. If the activity is considered a hobby then you don't have any additional tax or reporting obligations. 

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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