Arabic version: دعوة للبائعين عبر الإنترنت إلى التحقق من التزاماتهم الضريبية

According to SBS News, Australians selling unwanted goods online may need to consider whether their activity is a hobby, the sale of a valuable asset or a business, as there is no minimum sales value that automatically triggers tax obligations.

Platforms including eBay, Depop, Facebook Marketplace and Vinted have made it easier to sell clothes and household items. Occasional sales of existing personal items, such as selling a dress for less than its purchase price, are likely to be viewed by the Australian Taxation Office as private, loss-making hobby activity rather than a business. Sellers may still need to declare certain activity and retain records supporting their position.

The position can change when people repeatedly buy goods to resell at a profit. Regular, continuous activity and a business-like approach, including record-keeping and advertising beyond family and friends, can indicate a business. Business operators must declare income, may claim allowable expenses and pay tax on net business income.

Amazon and eBay provide sales data for people who sell goods worth A$12,000 or more in a year. The figure does not determine whether someone is running a taxable business, but sellers above it are more likely to be asked to explain their activities. The tax office matches more than 600 million transactions with taxpayers annually and may also obtain information through payment systems, banks and other sources.

Higher-value personal goods can raise separate questions. A gain on jewellery originally bought for more than $500, or other personal items bought for more than $10,000, may be taxable if sold for more than the original price. Sellers uncertain about their circumstances should seek advice from a registered tax practitioner.