ato logo
Search Suggestion:

Hobby or business?

Last updated 3 March 2016

It is important to determine whether you are carrying on a business or pursuing a hobby, sport or recreational activity that does not produce income.

In general, you are considered to carry on a business if the activity:

  • has started
  • has a significant commercial purpose or character
  • has a purpose of profit as well as a prospect of profit
  • is carried out in a manner that is characteristic of the industry
  • is repeated, regular or continuous
  • cannot be more accurately described as a hobby, recreation or sporting activity.

For additional information, see Business or hobby? in Starting your own business. If you are a primary producer, see Taxation Ruling TR 97/11 - Income tax: am I carrying on a business of primary production?

QC28003