On 6 October 2026, the Australian Taxation Office (ATO) published new guidance addressing the tax obligations of individuals earning income through online activities such as content creation, social media influencing, and e‑commerce sales. The guidance clarifies when these activities constitute a business for tax purposes, outlining the relevant indicators – including profit‑making intention, repetition, scale, and organisation – and explains the resulting income tax, GST, and record‑keeping requirements. The ATO emphasizes that even sporadic or hobby‑like activities may be treated as a business if they display commercial characteristics, and it provides practical examples to help taxpayers self‑assess.
Key Takeaways
- Business vs. Hobby Test: The ATO reiterates that no single factor determines business status; rather, a holistic view of profit intent, regularity, volume, and business‑like conduct is applied. Taxpayers should document their decision‑making process.
- GST Registration Threshold: Once annual turnover exceeds AUD 75,000, GST registration becomes mandatory. The guidance reminds online sellers to monitor turnover across all platforms, including overseas sales that may be subject to GST under the cross‑border digital services rules.
- Record‑Keeping and Reporting: Individuals classified as running a business must maintain adequate records of income and expenses, issue tax invoices where required, and report business income in their tax return. The ATO provides a checklist to assist with compliance.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement