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Edited version of private advice

Authorisation Number: 1051892869509

Date of advice: 30 August 2021


Subject: Am I running a business?


Is the money you received from selling off your private collection of plants online considered assessable income under section 6-5 of the Income Tax Assessment Act 1997?


No, the money you received is not part of your assessable income under section 6-5 of the Income Tax Assessment Act 1997 as it does not have the characteristics of a business.

This ruling applies for the following period:

Period ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You had a hobby of collecting plants for your own personal enjoyment.

The plants were primarily acquired as a gift from your grandparents.

Prior to 20XX you had never sold any of the plants.

You made the decision in mid-20XX to start to sell your plant collection as you were unable to continue to look after your plants.

The plants are stored in a greenhouse on a property that you previously owned.

The plants are primarily sold on eBay via auction.

The value of the plants is unknown.

You do not have an intention of making a profit, your intention is to dispose of the plants.

You do not have a business plan.

You do not have a business bank account.

You have not kept any records.

You do not advertise.

You have never run a plant nursery business, nor do you have any intentions to do so.

You do not have any qualifications in regards to horticulture.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

Income Tax Assessment Act 1997 section 995-1