IS IT A HOBBY OR A JOBBY?

"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:

• Have you registered a business name?
• Have you obtained an ABN?
• Are you trying to make a profit?
• Do you repeat similar types of activities?  (ie sell same goods)
• Do you keep business records?
• Do you have a separate bank account?

If you're answering yes to any of the above, chances are you're officially in business and it's probably a good time to  seek the guidance of a Tax Accountant to ensure you are compliant. The upside of officially being in business is that you can claim all the expenses against your taxable income.

Still not sure? Click here to go to the ATO website for further clarification.