If you are an artist, you have to decide which of the following tax options you are going to operate under. You need to decide whether you:
- formally declare your art practice as a hobby. This means you don’t pay tax on any income your work generates but you also can’t claim any expenses of production or other ‘business’ expenses.
- operate as a business and obtain an Australian Business Number (ABN) but you don’t register for the Goods and Services Tax (GST). Having an ABN and being registered for GST are two separate steps and it is possible to have an ABN and not register for GST, providing you aren’t required to because of the criteria outlined in the section Registering for GST.
- get an ABN and register for GST.
If you are unsure which Tax Choice is best for your practice, you may need the advice of an accountant.
