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  • Hobby or business



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    It is important to determine whether the partnership is carrying on a business, as distinct from pursuing a hobby, sport or recreational activity that does not produce assessable income.

    The factors or ‘business indicators’ that various courts and tribunals have taken into account in determining if a business exists for tax purposes include whether the activity:

    • has actually started
    • has a significant commercial purpose or character
    • is undertaken with a purpose of profit, as well as a prospect of profit
    • is carried out in a manner that is characteristic of the industry
    • has repetition, regularity or continuity
    • is planned, organised and carried on in a business-like manner
    • is of a sufficient size, scale and permanency to generate a profit
    • is not more properly described as a hobby, recreation or sporting activity.

     For more information, see 'Are you carrying on a business?' in:

    Last modified: 12 Feb 2019QC 35433