Now that we are fully embracing the Christmas spirit many of us are calling on our creative sides and creating things like Christmas decorations, holiday cards or getting our catering ready. This can be a lot of fun and especially if it’s something you enjoy, or it might be your side-hustle to make a few quick bucks over the holidays.

If you’re doing it for more than the love of it and hoping to make some pocket money there are some important considerations that are often missed. The biggest confusion is whether you are engaging in a hobby or are conducting a business and what the tax and other compliance obligations are.

So, how do you know?

There is no single factor, although some of the below suggest that you are in fact running a business:

• You intend to make a profit or believe you will make a profit, even if it is unlikely in the short term;
• you have made the decision to start a business and have taken action towards that such as registering a business name or obtaining an ABN;
• you repeat similar types of activities; or
• you operate in an organised and planned out manner, this could look like:
  • keeping business records and account books;
  • having a separate business bank account;
  • operating from business premises;
  • having licenses or qualifications; or
  • having a registered business name.

There are many pros and cons for both operating a business or enjoying a hobby. If you are unsure about which boat you are in or should be in, contact our team of business advisors today on 07 4688 8400 or 07 4681 6700.