Do I need to start a business if I'm just earning some money from the things I like doing in my spare time like hobbies?

• Generally if you are just engaging in a hobby you will not need to register as a business.
• However there is no set test to say whether your activities amount to more than a hobby. A few guiding questions can help you decide if it is time to register as a business:

• are you carrying on the task or activity with a view to profit or for commercial reasons?
• do you plan your activities and carry them out in a business-like manner?
• are the activities repeated on a regular basis?
• is there a prospect of making a profit?
• will the profit-making be ongoing?

• If you have answered yes to any of these questions you should consider whether you are actually carrying on a business rather than just spending time working on a hobby.
• If you are deemed to be carrying on a business then there will be tax and reporting obligations imposed by the ATO.
• If you have any concerns you can use our free and anonymous Ask a Lawyer service to get information specific to your situation.