Private ruling: Am I running a business?
Date of advice: 30 August 2021
Published: November 2021
Ruling period: Period ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the money you received from selling off your private collection of plants online considered assessable income under section 6-5 of the Income Tax Assessment Act 1997 ? | A1: No, the money you received is not part of your assessable income under section 6-5 of the Income Tax Assessment Act 1997 as it does not have the characteristics of a business.

Relevant facts and circumstances: You had a hobby of collecting plants for your own personal enjoyment. The plants were primarily acquired as a gift from your grandparents. Prior to 20XX you had never sold any of the plants. You made the decision in mid-20XX to start to sell your plant collection as you were unable to continue to look after your plants. The plants are stored in a greenhouse on a property that you previously owned. The plants are primarily sold on eBay via auction. The value of the plants is unknown. You do not have an intention of making a profit, your intention is to dispose of the plants. You do not have a business plan. You do not have a business bank account. You have not kept any records. You do not advertise. You have never run a plant nursery business, nor do you have any intentions to do so. You do not have any qualifications in regards to horticulture.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 995-1