"Oh this? No, it's just a hobby. I don't earn that much from it".
It's never been easier to work from home, create your craft, use an online sales platform and go forth to find your tribe. There's something about hustling around the kitchen table that makes it feel a long way from the big corporate world. The tricky bit tho' is whether what you're doing is really just a hobby or is it really a mini empire in the making? And unfortunately, the very same technology that allows you to thrive on your side-gig, is being used by the ATO to data match and find people not meeting their tax obligations.
Whether it is in fact a hobby or a jobby is not yours at will to declare. Contrary to popular belief - it's also not determined by a dollar threshold.
Really what you need to consider is whether you are approaching it in a business-like manner. If you are, chances are likely that you'll need to declare your income. Here's a few considerations that make your hobby more like a business:
Still not sure? Click here to go to the ATO website for further clarification.
Gabrielle Osborne (BAcc) is a small business specialist who loves empowering creative minds by helping them make sense of their business numbers.