Where an activity you engage in is deemed a hobby, for example a spare-time activity or a pastime pursued for pleasure or recreation, any income generated from that activity is generally excluded from your assessable income of your tax return.
Types of income that are excluded may include:
– Gifts or amounts bequeathed to you
– Prizes that are not related to your business activities
– GST that you have collected
– Money that you have borrowed
– Most payouts from your own personal income protection insurance policy
– Gambling wins
The following link explains in more detail excluded income
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.