Business Tax Information
When carrying on a business, earnings must be declared as income, and tax deductions are available for expenditure.
By contrast the income from a hobby is tax free, and associated deductions cannot be claimed.
What is carrying on a business?
Whether a business or hobby exists for tax purposes is determined from factual circumstances.
The Tax Office has provided information here (a list of relevant indicators).
See also Tax Office rulings:
- TR D 2005/1 – whether a professional artist is considered to be carrying on a business
- TR 97/11 – what is meant by the phrase ‘business of primary production’ for tax purposes
- TR 2008/2 – parts A and B of this ruling consider whether racing, training and breeding activities (i.e. the horse industry) amount to the carrying on of a business for tax purposes.
This page was last modified 2017-11-10