Hi, ive been breeding and selling my culls off for 5 years now... and like to know do I need to pay any tax or let the taxation office know that ive been selling my budgies? I haven't been able to make any profit from my hobby cause I use my money pay for budgie food and accessories sometimes buy new and rare budgies I don't already have.. but Im still selling do I need to declare cause I dont want to get stung by the taxation office 10 years down the road.

 

Best regards

Edited May 11, 201411 yr by Jetsbudgies

Hi Jetsbudgies,

good to see you are concerned about taxes but in this case it's a NO. No you do not have to report to ATO. The first step of declaring yourself a business is to work out if you are actually running a business. You should read this info:

 

https://www.ato.gov.au/workarea/DownloadAsset.aspx?id=7357

 

Do you have the purpose of profit ?

 

Does it allow you to make a sustainable amount of profit ?

 

You do make some profit on the sale of a bird however in business context that profit is eaten up by the expenses of raising the birds.

Thank you so much for the reply budgieowner. Your answer really helped.