Go Back   Small business forum Australia > Today's hot topics > Starting a business


Hobby or Business?

Reply
 
Link to this thread Thread tools Search this thread
  #1 (Link to this post)  
Old 31-08-09
CoolGeek's Avatar
Forum newcomer
 
Join Date: Aug 2009
Posts: 7
Thanks: 3
Thanked 0 Times in 0 Posts
Default Hobby or Business?

Hello everyone,
I am thinking of starting a home-based business for investing part of my primary income.

However, I am unsure of which criteria to determine whether my activity is business or hobby. Could any1 please clarify this? (ie. is there a certain minimum transaction volume/value that I need to stay above in order to qualify as a business)

Many thanks!

p/s: I am still at the early stage of my professional life hence very inexperienced, so any other advises are most welcomed. =)

Reply With Quote
  #2 (Link to this post)  
Old 31-08-09
ray_223's Avatar
Forum enthusiast
 
Join Date: Dec 2008
Location: Orange, NSW, Australia
Posts: 548
Thanks: 5
Thanked 21 Times in 21 Posts
View Member's Facebook Profile View Member's Youtube Profile View Member's Linkedin Profile View Member's Twitter Profile View Member's Google+ Profile
Default Re: Hobby or Business?

The below link should help ... if it doesn't the best advice is go see an accountant.

http://www.ato.gov.au/corporate/cont...t/00199712.htm

All t he best

__________________
Ray Smith
http://RaymondSmith.com
Reply With Quote
  #3 (Link to this post)  
Old 31-08-09
Forum newcomer
 
Join Date: Aug 2009
Posts: 6
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: Hobby or Business?

For investing, I have had a few friends who have claim similar experiences, sent me an email and I will let you know.

Regards

Anthony

Reply With Quote
  #4 (Link to this post)  
Old 31-08-09
Brendan the Bookkeeper's Avatar
Forum newcomer
 
Join Date: Aug 2009
Posts: 15
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: Hobby or Business?

Quote:
Originally Posted by ray_223 View Post
The below link should help ... if it doesn't the best advice is go see an accountant.

http://www.ato.gov.au/corporate/cont...t/00199712.htm

All t he best
Ray is spot on with the ato link.

To sum it up in plain english - a business is something that is repetitive, ie you sell/buy each month and you're in it for a profit.

A hobby is something that can be repetitive, but generally there is no profit motive.

The size of the activity also contributes - e.g I make $1,000 per year selling home-made jewellery, this results in net profits of $200. I think the ATO would let that be a 'hobby' as the size of the business is tiny.

Hope that helps!

__________________
Brendan Jones ASA
Safe Bookkeeping Services
Email: brendan@safebookkeeping.com.au
Web: www.safebookkeeping.com.au
Reply With Quote
  #5 (Link to this post)  
Old 03-09-09
Tristan Boyd's Avatar
Forum regular
 
Join Date: Jan 2009
Location: Sydney
Posts: 56
Thanks: 0
Thanked 0 Times in 0 Posts
View Member's Linkedin Profile
Default Re: Hobby or Business?

I totally misjudged this thread from the heading. I was hoping to hear about someone who loved their home business so much that they still considered it a hobby. I'll keep living in hope :-)

__________________
Website design Sydney :: Boyd Design
Reply With Quote
  #6 (Link to this post)  
Old 03-09-09
Forum newcomer
 
Join Date: Sep 2009
Location: Inner-West
Posts: 16
Thanks: 0
Thanked 0 Times in 0 Posts
Send a message via MSN to Jenna
Default Re: Hobby or Business?

Hmm interesting thread. This leads me to wondering, do I need to have set up an ABN (or anything else) before buying anything business related, if I'm going to later claim what I've spent money on as business related tax offsets??

__________________
Not being able to speak is not the same thing as not having anything to say.
Reply With Quote
  #7 (Link to this post)  
Old 12-09-09
ray_223's Avatar
Forum enthusiast
 
Join Date: Dec 2008
Location: Orange, NSW, Australia
Posts: 548
Thanks: 5
Thanked 21 Times in 21 Posts
View Member's Facebook Profile View Member's Youtube Profile View Member's Linkedin Profile View Member's Twitter Profile View Member's Google+ Profile
Default Re: Hobby or Business?

Quote:
Originally Posted by Rainbowzyp View Post
I think,Hobby just as some interesting excep working. Business is not . it's support your daily life. business including hobby, hobby don't belong to business.
Hi Rainbowzyp,

It's not what "you" think. It's what the Australian Taxation Office (ATO) thinks. The whole hobby / business issue is a gray area - which is why they ATO have a page trying to explain the process they go through to determine if you are running a business or playing in your hobby.

__________________
Ray Smith
http://RaymondSmith.com
Reply With Quote
  #8 (Link to this post)  
Old 12-09-09
Burgo's Avatar
Forum devotee
 
Join Date: Nov 2008
Location: North Ryde NSW
Posts: 1,898
Thanks: 1
Thanked 36 Times in 34 Posts
View Member's Linkedin Profile
Default Re: Hobby or Business?

Tristan,

my business has now become my hobby. I just get such a buzz out of it I just cant seem to let it go.

If your business isnt your hobby, STOP, THINK, and start all over again, because a hobby is something you just love doing a business earns you an income, and as soloists your business should be your hobby, otherwise you may as well go and work for a boss , your business.

Do i need to explain this

__________________
Patrick Burgess AIMM. ICF.
(old and eccentric)
WoolSafe Carpet Complaints Inspector
www.woolsafe.orgGet Your FREE WoolSafe App.Now
Reply With Quote
  #9 (Link to this post)  
Old 17-09-09
Forum newcomer
 
Join Date: Sep 2009
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: Hobby or Business?

Hello Friend,
You are starting your new business, whether you are starting it as a hobby or for income but take it seriously..
I think it will be plus point for you that it is your hobby also..it will help in maintaining your interest in your business,which will make you work more harder,but take it seriously and professionaly..

Regards,
Nelson

__________________
Leadership Development
Reply With Quote
Reply

Go Back   Small business forum Australia > Today's hot topics > Starting a business

Thread tools Search this thread
Search this thread:

Advanced Search




Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.6.0 RC 2