It is of course amazing to know that income can be generated through hobbies that are just done for pleasure or entertaining oneself in hours of leisure, but, at the same time it is most important to know whether it is just a hobby or also a business. But, because the income that is generated upto some extent or limit becomes a taxable income, the discrimination between the two i.e., hobby and business shows up for the difference.
Since the ATO has the responsibility of administering the Australian federal taxation system and superannuation legislation, he may find and examine the so called activity or hobby to be a business, then the expenses can be claimed as tax deductions as well as the income earned thereby also becomes taxable.
What is a hobby? Is the income derived from it taxable or not –
To cite an example, let us say, a businessman participating in a car race contest wins a huge amount of prize money which is his hobby, then the money or the amount earned therefrom can neither be included in tax deductions nor does he have to pay any tax on such amount.
What if business?
Any business with legal formalities such as registration of name, keeping records like account book, bank account or having a fixed premise for the same to be carried out as well as getting license of the same, the Accounting Service in Melbourne is the right guide for getting advice on tax returns for companies, business or hobbies.
BEWARE OF UNKNOWN CALLS FROM ATO –
Many a times, there are unknown calls threatening you to pay tax or else arrest you for not paying tax and such fake callers at times succeed in their mission to convince you and therefore these types of fake callers should be taken note of, as well as avoid and ignore their phone calls by being careful about your personal details being leaked out to them.
The ATO always keeps us alert about such fraudsters as such people would first text us and after several attempts would make a call asking for the due payment and therefore it is very much advisable to consult your accountant and have regular discussion about the debts and taxes. Always hire a good accountant and be free from such fraud.
VARIOUS EXPENSES AS TAX DEDUCTIONS –
With the onset of taxation season, there is fatigue lit on the clients because of calculating tax and putting their expenses and filing them in order. Advantage on some of the miscellaneous expenses such as tax preparation fees, hobby expense, job hunting costs, gambling as well as tools and supplies can be got as tax deductions with maximum refunds.
The PND Accountants in Williams Landings situated in the region of Greater Melbourne also have a great contribution in providing the highest level of professional services as per your satisfaction and at the competitive rates and also help in the growth and achievement of goals set by their clients.
