Your online selling becomes a business in Australia at the point the activity takes on an overall commercial character, and from that point you carry obligations with the Australian Taxation Office (ATO): an ABN, GST registration once turnover reaches $75,000, business activity statements (BAS), declaring every dollar of income, and five years of records. There is no income threshold that decides the question. The ATO weighs a set of factors together, including commercial purpose, intention to profit, repetition and regularity, business-like organisation, and size and scale, then forms an overall impression of what you are doing.
What counts as online selling in Australia?
The ATO takes a wide view of what counts as online selling. It covers goods you can hold, goods that download, and services, sold for income through any channel: your own site, a marketplace, a social channel or an app. Activities it associates with online sellers include:
sourcing or making your stock, whether by buying raw materials or purchasing finished goods to resell
building or sourcing digital products to sell
listing what you sell on your own site, a marketplace, a social channel or an app, and taking orders there
delivering orders yourself, or through a platform's fulfilment service
getting a property ready to let on a short-term basis, including meeting the standards a booking platform such as Airbnb sets
If your company sells into Australia from offshore, separate GST rules for non-resident merchants can also apply to imported services, digital products and low value imported goods. Which rules apply depends on how you sell and where your goods are located, so contact our tax and accounting team for advice on your own situation.
How does the ATO decide if you are carrying on a business?
No single factor settles the question. The ATO works through a set of factors, weighs them together, and forms an overall impression. You do not need to meet every factor, and the ones that matter most depend on your circumstances.
Is the activity commercial?
A storefront on a marketplace such as Etsy or eBay, a social channel, your own site or an app, combined with competitive pricing, advertising and market research, points to a business.
Is there more than an intention?
Wanting to trade is not enough on its own. The ATO looks for real effort to start the activity and keep it going, backed by at least some business assets.
Are you aiming for a profit, and can you make one?
Profit has to be the main motivation, rather than deductions or access to small business concessions. Making a loss does not rule it out, provided you can realistically expect a profit in a later income year.
How often do you sell?
Online sellers rarely keep shop hours, so the ATO looks for a clear pattern instead: updating listings, watching stock, replying to buyers, logging sales and expenses, and promoting what you sell.
Is it run like a business?
A plan you follow, written market research, proper profit and loss figures, targets for margin or customer growth, advertising, and the systems behind all of it.
What is the size and scale?
Larger operations are more likely to be businesses, measured against others selling the same way. A small operation with little capital can still qualify when the other factors are met.
Or is it a hobby?
Where the activity is better described as personal enjoyment or a creative outlet you have chosen not to commercialise, it is not a business.
The ATO runs an online selling data-matching program that collects platform data to identify sellers moving from hobby status into business, and sellers who have not met registration or lodgement obligations.
What are your ATO obligations once the online activity is a business?
Once you are carrying on an online selling business, registration, reporting and record-keeping obligations apply. You need to:
apply for an Australian Business Number (ABN)
register for GST once your turnover hits $75,000 across any 12 months, add GST to taxable sales, and lodge BAS
include GST-free sales, such as payments from foreign advertising networks, in that $75,000 figure
report all business income, including anything you receive as goods or services rather than cash
keep records of every transaction for at least five years
You declare income from every channel and payment method: marketplace sales, sales through your own site, sales made over social media, money received in cash or by transfer, and amounts paid to you after a platform deducts its fees or commission. Foreign income counts too. You can also claim GST credits on business expenses, use the small business concessions and deductions you qualify for, and pay tax in instalments through PAYG rather than in one payment at year end.
When does an online selling business start and end?
Your business starts when you move from planning to trading. In practice that means you have decided to go ahead, bought the equipment and assets the activity needs, and begun selling with the intention of earning income. Everything before that, including research, budgeting and planning, sits outside it, so a long lead-in does not move the start date earlier.
It ends when you no longer intend to continue, or the selling itself stops. Indicators include a long period of inactivity, storefronts and platform profiles taken down, supplier and customer agreements cancelled or left to lapse, business assets sold, and registrations such as your ABN or GST cancelled. This matters if your Australian operation is seasonal or time-limited.
What happens if the online activity is not a business?
Income from an activity that is not a business can still be taxable. You still declare it, keep appropriate records, and claim the deductions you are entitled to. The registration obligations do not follow: no ABN, no GST.
Two situations generally sit outside the tax system. The first is a genuine hobby, an activity done for enjoyment, where any money received is incidental rather than the purpose. The second is the casual sale of personal items bought for private use rather than resale. Amounts from either are generally not assessable, and the related costs are generally not deductible. Neither description fits a planned expansion into the Australian market.
Still unsure? Talk to our team
If you are weighing up whether your Australian online sales have become a business, it is better to settle the question early. ABN Australia helps overseas businesses expand online into Australia and handles the compliance that follows, including company registration, ABN and GST registration, BAS lodgement, bookkeeping and tax, ASIC obligations, and local agent and registered office services.
We work only with international businesses coming into Australia, across time zones, and you deal directly with the people doing the work. Get in touch with our team to talk through your plans, and we will tell you what applies to your situation before you start selling.
Last updated: 20th Oct 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Frequently asked questions
Ro Elvinia
Marketing Manager