Private ruling: Hobby vs business
Date of advice: 15 June 2026
Published: 3 August 2026
Ruling period: Year ended 30 June 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Having regard to the definition of 'business' in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997), are the Activities properly characterised as a hobby for income tax purposes? | A1: Yes. Your Activities are properly characterised as a hobby and do not constitute the carrying on a business. Having regard to the definition of 'business' in section 995-1 of the ITAA 1997, the Activities lack the essential commercial characteristics, including scale, regularity and a business-like manner.

Relevant facts and circumstances: The Taxpayer is a fully retired pensioner, having retired after a career in the Profession. Since retirement, the Taxpayer has continued to engage with areas of expertise in that Profession for personal interest and intellectual satisfaction. The Taxpayer does not advertise or promotes services and does not hold themselves out as a professional of the Activities. The Activities commenced following an invitation from a professional contact to contribute material based on prior academic research and are undertaken primarily as a personal hobby. The Taxpayer is not trained in the Activities and does not aspire to be. The Taxpayer had no expectation of payment in undertaking the Activities. The Activities are completed on an ad hoc basis without any contractual arrangement, obligation, or guarantee of acceptance or remuneration. The Taxpayer has no intention of engaging in commercial activities. The Activities are conducted irregularly and on a limited basis, with less than 5 completed per year. The Taxpayer does not operate under any business plan, structure or system and does not maintain records, accounts or financial tracking systems. There is no intention to expand, promote or monetise the Activities. The Taxpayer does not hold an ABN or GST registrations, does not incur significant expenses, invest capital, or assume financial risk, and is not engaged as an employee, contractor, or regular contributor. Any amounts received are incidental, not relied upon as income, and are outweighed by the time invested. The Activities are undertaken solely for personal enjoyment, and the Taxpayer does not intend to make a profit now or in the future.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 995-1