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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012763251216

Date of advice: 07 February 2015

Ruling

Subject: Am I in business

Question

Will you be considered to be carrying on a business?

Answer

Yes.

This ruling applies for the following periods:

Year ended 30 June 2014-15

Year ended 30 June 2015-16

Year ended 30 June 2016-17

Year ended 30 June 2017-18

Year ended 30 June 2018-19

The scheme commences on:

1 July 2014

Relevant facts and circumstances

You carry on an activity.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

Income Tax Assessment Act 1997 section 8-1

Reasons for decision

Taxation Ruling TR 97/11 provides a guide to indicators that the courts have held to be relevant as to whether or not a person is carrying on a business. In the Commissioner's view, the factors that are considered important in determining the question of business activity are:

    ● whether the activity has a significant commercial purpose or character

    ● whether the taxpayer has more than just an intention to engage in business

    ● whether the taxpayer has a purpose of profit as well as a prospect of profit from the activity

    ● whether there is regularity and repetition of the activity

    ● whether the activity is of the same kind and carried on in a similar manner to that of ordinary trade in that line of business

    ● whether the activity is planned, organised and carried on in a businesslike manner such that it is described as making a profit

    ● the size, scale and permanency of the activity, and

    ● whether the activity is better described as a hobby, a form of recreation or sporting activity.

Whether a business is being carried on depends on the large or general impression gained (Martin v. Federal Commissioner of Taxation (1953) 90 CLR 470; (1953) 10 ATD 226; (1953) 5 AITR 548) from looking at all the indicators of carrying on a business, and no one indicator will be decisive (Evans v. FC of T 89 ATC 4540; (1989) 20 ATR 922).

In your circumstances, the overall impression gained is that you are carrying on a business activity.


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