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Is your ‘business’ a hobby?

2 February 2018

If you sell products or services without intending to make a profit, your activity may be a hobby rather than a business.

It’s likely you’re not in business if your activities are:

  • irregular
  • not aimed at making a profit
  • small in size and scale
  • not carried out in an organised manner
  • conducted in your spare time
  • mostly for your own satisfaction.

If your activities are a hobby, you can't claim GST credits on your purchases and should cancel your GST registration. You can only potentially claim GST credits for items you purchase that help you conduct a business.

If you’ve made any GST claims for your hobby, we can help you amend your past activity statements.

To discuss your circumstances, phone the Tax Office on 13 72 26.

Remember, registered tax agents and BAS agents can help you with tax advice.