Mark C.
Narre Warren, VIC
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I have a small Automotive Engineering business that currently turns over around $50k per year.
Started out with big plans 5 years ago but has now become a one man part time operation from home workshop, and I work full time for someone else.
It's still registered as a company (PTY LTD) but with operating costs like accounting fees etc it feels like it's not worthwhile.
Would appreciate advice on pro's and con's of sole trader vs Hobby business?
Responses
If the activities are carried out in a business form then you would be treated as a business and it surely wont be treated as a hobby.
If you decide to start trading as a sole trader then your income will be assessable in your own tax return. If it was a hobby (in this case its not) then the income would not be taxable.