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:
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irregular
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not aimed at making a profit
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small in size and scale
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not carried out in an organised manner
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conducted in your spare time
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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 us on Phone (02) 9436 2301
Remember, registered tax agents and BAS agents can help you with tax advice.
Source : ATO Small business newsroom February 2018
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/GST-and-excise/Is-your–business–a-hobby-/
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