Australian Reseller Tax Guide 2025: ABN, GST, and Income Tax Explained

Introduction: Navigating Australian Tax Obligations as a Reseller

The Australian reselling market has exploded in 2025, with millions of Australians earning income through platforms like eBay, Depop, Facebook Marketplace, and Grailed. Whether you're decluttering your wardrobe, running a side hustle, or building a full-time business, understanding your tax obligations is crucial for compliance and maximising your profits.

This comprehensive guide covers everything Australian resellers need to know about tax obligations, from casual sellers to established businesses. We'll explore ABN requirements, GST registration thresholds, income tax obligations, deductible expenses, and platform-specific reporting requirements.

Important Disclaimer: This guide provides general information only and should not be considered professional tax advice. Tax laws are complex and change frequently. Always consult with a qualified accountant or the Australian Taxation Office (ATO) for advice specific to your situation.

Understanding Your Seller Status: Hobby vs Business

Hobby Sellers vs Business Operations

The ATO distinguishes between casual selling activities and business operations, which affects your tax obligations significantly.

Characteristics of Hobby Selling

Selling personal items you no longer need
Irregular selling activity
No clear profit motive or business plan
Items sold for less than their original purchase price
No advertising or business promotion
Minimal time and effort invested

Tax implications for hobby sellers:

Generally no income tax on sales of personal items
No ABN or GST registration required
No business expense deductions available
Capital gains tax may apply to collectibles over $500

Characteristics of Business Operations

Regular buying and selling activity
Clear profit motive and business planning
Purchasing items specifically for resale
Advertising and promoting your business
Significant time and effort invested
Maintaining business records and inventory

Tax implications for business sellers:

All income subject to income tax
ABN may be required for business operations
GST registration required at $75,000+ annual turnover
Business expense deductions available
Quarterly Business Activity Statements (BAS) if registered for GST

The Gray Area: Side Hustles and Part-Time Operations

Many resellers operate in the gray area between hobby and business. The ATO considers multiple factors:

Factors indicating business activity:

**Repetition and regularity**: Consistent buying and selling patterns
**Profit motive**: Clear intention to make money
**Business planning**: Strategic approach to sourcing and selling
**Commercial manner**: Professional presentation and customer service
**Scale of operations**: Volume of transactions and turnover

Example scenarios:

Scenario 1 - Likely Hobby: Sarah occasionally sells items from her wardrobe on Depop. She lists 5-10 items per month, mostly clothing she no longer wears, and earns $200-400 monthly. She doesn't actively source new inventory.

Scenario 2 - Likely Business: Marcus regularly visits op shops and garage sales to source vintage clothing. He lists 50+ items monthly across multiple platforms, maintains inventory records, and earns $2,000+ monthly with clear growth plans.

ABN Requirements for Resellers

When You Need an ABN

An Australian Business Number (ABN) isn't always required for reselling, but it's beneficial in many situations.

ABN Required When:

Operating a business (vs. hobby selling)
Annual turnover exceeds $75,000 (for GST purposes)
Suppliers require your ABN for wholesale purchases
You want to claim business expense deductions
Registering a business name
Opening business bank accounts

ABN Benefits for Resellers:

**Business credibility** with suppliers and customers
**Wholesale access** to many suppliers
**Business banking** and separate financial records
**GST registration** capability when required
**Professional image** for marketing

ABN Application Process:

Visit the Australian Business Register (ABR) website
Complete the online application (free)
Provide business details and activity description
Receive ABN immediately (if eligible)
Consider registering a business name (+$37 annually)

Application requirements:

Be 18+ years old (or have guardian apply)
Australian resident or operating in Australia
Conducting business activities in Australia
Legitimate business purpose

ABN Without GST Registration

You can obtain an ABN without registering for GST if your annual turnover is under $75,000. This is ideal for small-scale resellers who want business credibility without GST compliance obligations.

Benefits of ABN-only registration:

Professional business appearance
Access to wholesale suppliers
Business expense deductions
Simplified record keeping
No quarterly BAS requirements

GST Registration: The $75,000 Threshold

Understanding GST Obligations

Goods and Services Tax (GST) is a 10% tax on most goods and services sold in Australia. GST registration becomes mandatory when your annual turnover reaches $75,000.

Calculating Annual Turnover for GST:

Include in turnover:

All sales revenue (including shipping charges)
Sales across all platforms and channels
Any other business income
Input taxed sales (some financial services)

Exclude from turnover:

Private sales of personal items (hobby selling)
Capital asset sales (equipment, vehicles)
Export sales (GST-free)

Example calculation: ` eBay sales: $35,000 Depop sales: $28,000 Facebook Marketplace: $15,000 Local market sales: $8,000 Total annual turnover: $86,000 Result: GST registration required `

Voluntary GST Registration

You can voluntarily register for GST even with turnover under $75,000 if:

You want to claim GST credits on business purchases
Many suppliers charge GST (input tax credits benefit)
You're planning significant business growth
Professional image benefits outweigh compliance costs

GST Registration Process:

**Register through ATO online services** or Business Portal
**Complete GST registration form** with business details
**Choose reporting frequency** (monthly or quarterly)
**Receive notification** confirming registration
**Update business systems** to include GST in pricing

GST Compliance Requirements:

Price Display:

**Business customers**: Prices can be GST-exclusive + GST
**Consumer customers**: Prices must be GST-inclusive
**Online marketplaces**: Most require GST-inclusive pricing

Record Keeping:

All sales and purchase records
Tax invoices for sales over $82.50
Valid tax invoices for claiming credits
BAS worksheets and lodgments

Business Activity Statements (BAS):

**Quarterly lodgment** for most small businesses
**Monthly lodgment** if required by ATO
**Due dates**: 28 days after quarter end
**Electronic lodgment** recommended

Income Tax Obligations for Resellers

Taxable Income from Reselling

All income from business reselling activities is subject to Australian income tax, regardless of the platform used or amount earned.

What Counts as Taxable Income:

Sales revenue from all platforms
Shipping charges collected from customers
PayPal Goods & Services payments
Cash payments from local sales
Cryptocurrency payments (converted to AUD)
Bartering or trade arrangements

What's Not Taxable Income:

Private sales of personal items at a loss
GST collected (if registered for GST)
Refunded payments to customers
Customer deposits held temporarily

Income Reporting Requirements:

Individual Tax Returns:

Report reselling income in your personal tax return if:

Operating as sole trader
No separate business structure
Income under $18,200 (tax-free threshold)

Business Tax Returns:

Required if operating as:

Company structure
Partnership
Trust structure
Significant business operations

Tax Rates for Reselling Income:

Individual tax rates (2024-25):

$0 - $18,200: 0% (tax-free threshold)
$18,201 - $45,000: 19%
$45,001 - $120,000: 32.5%
$120,001 - $180,000: 37%
$180,001+: 45%

Plus Medicare Levy: 2% on taxable income above $23,365

Example tax calculation: ` Annual reselling income: $35,000 Other employment income: $25,000 Total taxable income: $60,000

Tax calculation: $18,200 × 0% = $0 $26,800 × 19% = $5,092 $15,000 × 32.5% = $4,875 Total tax: $9,967 Medicare levy: $1,200 Total tax payable: $11,167 `

Deductible Expenses for Resellers

Understanding deductible expenses is crucial for minimising your tax liability and maximising profits.

Directly Deductible Expenses:

Inventory and Cost of Goods Sold:

Purchase price of items for resale
Wholesale buying costs
Import duties and customs fees
Freight and delivery charges for inventory

Platform and Transaction Fees:

eBay final value fees and insertion fees
Depop payment processing fees
PayPal transaction fees
Stripe and other payment gateway fees
Currency conversion fees

Shipping and Packaging:

Australia Post shipping costs
Courier and express delivery fees
Packaging materials (boxes, bubble wrap, tape)
Shipping labels and printing costs
International shipping and customs forms

Marketing and Advertising:

Promoted listings on eBay and other platforms
Social media advertising costs
Photography equipment and props
Website hosting and domain fees
Business cards and promotional materials

Home Office Expenses:

If you use part of your home exclusively for reselling business:

Fixed Rate Method:

$0.52 per hour for home office use
No additional documentation required
Maximum 200 hours per income year

Actual Cost Method:

Percentage of home running costs
Electricity, gas, and water bills
Home insurance (business portion)
Council rates and land tax (business portion)
Depreciation on office equipment

Example calculation: ` Home office area: 10 sqm Total home area: 100 sqm Business use percentage: 10%

Annual home expenses: Electricity: $2,400 × 10% = $240 Insurance: $1,200 × 10% = $120 Council rates: $1,800 × 10% = $180 Total deductible: $540 `

Vehicle Expenses:

Cents per Kilometre Method:

$0.68 per kilometre (2024-25)
Maximum 5,000 business kilometres
Detailed travel diary required

Logbook Method:

Percentage of total vehicle costs
12-week logbook required
All vehicle expenses included

Example scenarios:

Driving to source inventory at garage sales
Trips to post office for shipping
Bank visits for business deposits
Meetings with suppliers or customers

Equipment and Technology:

Immediately Deductible (under $300):

Phone cases and accessories
Small photography equipment
Packaging tools and supplies
Software subscriptions under $300

Depreciating Assets (over $300):

Smartphones and tablets used for business
Cameras and photography equipment
Computers and laptops
Printers and scanners
Storage furniture and shelving

Depreciation example: ` Business laptop cost: $2,000 Business use: 80% Deductible cost: $1,600 Annual depreciation: $1,600 ÷ 3 years = $533 `

Professional Services:

Accounting and bookkeeping fees
Legal advice related to business
Business insurance premiums
Professional development and training
Industry conference and event costs

Platform-Specific Tax Reporting

eBay Australia Tax Considerations:

Fee Structure Impact:

**Final value fees**: 3.4-12.9% of sale price
**Insertion fees**: For auction-style listings
**Payment processing**: 2.9% + $0.30 per transaction
**Promoted listings**: Additional advertising costs

Record Keeping for eBay:

Download monthly seller reports
Track all fees separately
Record international shipping costs
Monitor currency conversion fees
Document return and refund transactions

eBay-Specific Deductions:

eBay store subscription fees
Top-rated seller benefits
Listing upgrade fees
International selling fees
eBay managed shipping costs

Depop Tax Reporting:

Payment Processing:

**Depop Payments**: 2.9% + $0.30 fee structure
**PayPal**: Additional fees if used
**Direct bank transfers**: Lower fees but manual tracking

Depop-Specific Considerations:

Social commerce engagement costs
Photo editing software subscriptions
Influencer collaboration expenses
Shipping label printing costs

Facebook Marketplace Considerations:

Payment Methods:

**Local pickup**: Cash payments (track carefully)
**Facebook Pay**: Electronic payment tracking
**PayPal**: Additional transaction fees

Tax Implications:

Cash sales must be recorded for tax purposes
Local pickup travel expenses deductible
Advertising boost costs deductible

Grailed and Specialty Platforms:

Authentication Services:

Platform authentication fees
Third-party verification costs
Insurance for high-value items
Specialized packaging requirements

Quarterly BAS Statements

Understanding Business Activity Statements:

If registered for GST, you must lodge quarterly BAS statements reporting:

GST collected on sales (output tax)
GST paid on business purchases (input tax credits)
Net GST position (pay or refund)
PAYG installments (if applicable)

BAS Preparation Process:

Data Collection:

**Sales records**: All platform sales and fees
**Purchase records**: Inventory and business expenses
**Bank statements**: Verify all transactions
**Platform reports**: Download quarterly summaries
**Receipt organisation**: Scan and categorise expenses

BAS Calculation Example:

` Quarter 1 Sales (including GST): $33,000 GST collected: $3,000

Quarter 1 Purchases (including GST): $16,500 GST paid: $1,500

Net GST payable: $3,000 - $1,500 = $1,500 `

BAS Lodgment Deadlines:

**Quarter 1** (July-September): Due 28 October
**Quarter 2** (October-December): Due 28 February
**Quarter 3** (January-March): Due 28 April
**Quarter 4** (April-June): Due 28 July

Late lodgment penalties:

$210 for first failure to lodge on time
$420 for subsequent failures
Additional penalties for unpaid amounts

International Selling and Tax Implications

Export Sales and GST:

GST-Free Exports:

Sales to overseas customers are generally GST-free
Must be exported within 60 days
Proper export documentation required
Customer cannot take possession in Australia

Documentation Requirements:

Export declaration or shipping receipt
Customer delivery address outside Australia
Evidence goods left Australia
Records maintained for 5 years

Currency Conversion:

ATO Requirements:

Convert foreign currency to AUD on transaction date
Use Reserve Bank of Australia exchange rates
Consistent conversion method required
Record both amounts for audit purposes

Example conversion: ` US$100 sale on 15 January 2025 RBA rate: 1 USD = 1.45 AUD Taxable income: US$100 × 1.45 = AUD$145 `

Platform-Specific International Considerations:

eBay Global Shipping:

eBay handles international logistics
GST implications depend on delivery address
Currency conversion handled by platform
Additional fees may apply

Direct International Sales:

Seller responsible for export compliance
Customer address determines GST treatment
International shipping costs deductible
Custom declaration requirements

Cryptocurrency and NFT Sales Tax

Cryptocurrency Payment Processing:

The ATO treats cryptocurrency as property, not currency, for tax purposes.

Tax Implications:

**Capital gains event**: Receiving crypto for goods sold
**Market value**: Use AUD value at time of receipt
**Record keeping**: Track crypto transactions carefully
**Disposal events**: Converting crypto to AUD triggers CGT

Example calculation:

` Sold vintage jacket for 0.1 Bitcoin Bitcoin value at sale date: AUD$6,000 Taxable income: AUD$6,000

Later sold Bitcoin for AUD$6,500 Capital gain: $6,500 - $6,000 = $500 CGT applicable on $500 gain `

NFT and Digital Asset Sales:

Tax Treatment:

NFT sales treated as business income if regular activity
Digital asset creation costs deductible
Platform fees (OpenSea, etc.) deductible
Gas fees and blockchain costs deductible

Record Keeping Requirements:

Transaction hashes and blockchain records
Platform fee documentation
Market value at time of transactions
AUD conversion rates used

Record Keeping Requirements

Essential Records for Tax Compliance:

Sales Records:

Date and amount of each sale
Customer details (if available)
Platform used for sale
Fees charged by platform
Shipping costs and methods
Refunds and returns processed

Purchase Records:

Date and cost of inventory purchases
Supplier details and ABN
Purpose of purchase (business use)
GST amounts (if registered)
Payment method and receipts
Import documentation (if applicable)

Expense Records:

Business-related receipts and invoices
Travel logs for business trips
Home office usage records
Equipment purchase documentation
Professional service invoices
Bank statements and payment records

Digital Record Keeping:

Recommended Tools:

**MYOB**: Popular Australian accounting software
**Xero**: Cloud-based accounting platform
**QuickBooks**: Comprehensive business management
**Wave**: Free accounting software option
**Shopfront**: Inventory and sales tracking

Backup Requirements:

Store records for 5 years minimum
Cloud backup recommended
Regular data export and backup
Physical receipt scanning
Bank statement archives

Monthly Record Keeping Routine:

Week 1 of Month:

Download platform sales reports
Reconcile payment processor statements
Scan and file physical receipts
Update inventory tracking

Week 2 of Month:

Categorize expenses in accounting software
Bank reconciliation completion
Travel log updates
Equipment depreciation calculations

Week 3 of Month:

Review and analyse profit margins
Platform fee analysis
Tax position assessment
Cash flow planning

Week 4 of Month:

Backup all financial data
Prepare monthly summary reports
Plan next month's inventory purchases
Review tax compliance status

Australian Tax Calendar and Key Deadlines

Annual Tax Deadlines:

Individual Income Tax Returns:

**Self-prepared**: 31 October 2025
**Tax agent prepared**: 15 May 2026 (varies by agent)
**PAYG payment summary**: Before lodging return
**Capital gains disclosure**: Include in annual return

Business Tax Obligations:

**Company tax returns**: Various dates based on balance date
**Partnership returns**: 15 October 2025
**Trust returns**: 15 October 2025
**ABN renewal**: Every 5 years (if required)

Quarterly Obligations:

BAS Statements (if GST registered):

**Q1 (Jul-Sep)**: Due 28 October 2024
**Q2 (Oct-Dec)**: Due 28 February 2025
**Q3 (Jan-Mar)**: Due 28 April 2025
**Q4 (Apr-Jun)**: Due 28 July 2025

PAYG Installments (if applicable):

Due same dates as BAS statements
Quarterly pre-payments of estimated tax
Based on previous year's income
Can be varied if circumstances change

Monthly Obligations:

PAYG Withholding (if employees):

Monthly remittance if withholding $25,000+ annually
Due 21st of following month
Include in monthly BAS if required

Key ATO Communication Dates:

Notice of Assessment:

Typically issued 2-3 weeks after return processing
Review carefully for accuracy
2 years to request amendment
4 years for ATO to amend

Payment Due Dates:

Individual tax: 21 days from notice date
BAS amounts: 28 days after quarter end
PAYG installments: With BAS lodgment
Late payment interest applies

Tax Planning Calendar:

June (End of Financial Year):

Maximise deductible expenses
Consider equipment purchases
Review depreciation schedules
Plan timing of income and expenses

July-August:

Gather tax documentation
Organise receipts and records
Download platform annual reports
Calculate preliminary tax position

September-October:

Prepare and lodge tax returns
Pay any outstanding tax liabilities
Review tax strategies for new year
Update business registration details

Practical Examples with Calculations

Example 1: Part-Time Fashion Reseller

Background:

Emma, employed teacher earning $65,000 annually
Side business selling vintage clothing
Annual reselling turnover: $28,000
Total expenses: $18,000

Tax Calculation: ` Employment income: $65,000 Reselling income: $28,000 Less: Business expenses: ($18,000) Net business income: $10,000 Total taxable income: $75,000

Tax on $75,000: $18,200 × 0% = $0 $26,800 × 19% = $5,092 $30,000 × 32.5% = $9,750 Total tax: $14,842 Medicare levy (2%): $1,500 Total tax liability: $16,342 `

Key takeaways:

No ABN required (could be beneficial)
No GST registration required
Business expenses significantly reduce tax
Consider timing of income and expenses

Example 2: Full-Time Electronics Reseller

Background:

Marcus, full-time electronics reseller
ABN and GST registered
Annual turnover: $95,000 (including GST)
Business expenses: $55,000 (including GST)

Income Tax Calculation: ` Gross sales: $95,000 Less: GST collected: ($8,636) Net sales: $86,364

Business expenses: $55,000 Less: GST on expenses: ($5,000) Net expenses: $50,000

Net business income: $36,364

Tax on $36,364: $18,200 × 0% = $0 $18,164 × 19% = $3,451 Total income tax: $3,451 Medicare levy: $727 Total tax liability: $4,178 `

GST Calculation (Quarterly): ` Annual GST collected: $8,636 Annual GST on expenses: $5,000 Net GST payable: $3,636 Quarterly payment: $909 `

Example 3: High-Volume Collectibles Dealer

Background:

Robert, collectibles specialist
Company structure for tax benefits
Annual turnover: $180,000
Business expenses: $120,000

Company Tax Structure: ` Company Income: Gross sales: $180,000 Less: Business expenses: ($120,000) Taxable income: $60,000

Company tax (25%): $15,000

Director's Salary (Robert): Salary: $45,000 Superannuation (10.5%): $4,725 PAYG withholding: $5,092

Dividend Distribution: Available for distribution: $45,000 - $15,000 = $30,000 Franked dividend: $21,000 Franking credit: $9,000

Robert's Personal Tax: Salary: $45,000 Franked dividend: $21,000 Franking credit: $9,000 Taxable income: $75,000

Tax calculation: $18,200 × 0% = $0 $26,800 × 19% = $5,092 $30,000 × 32.5% = $9,750 Gross tax: $14,842 Less: PAYG withheld: ($5,092) Less: Franking credits: ($9,000) Net tax payable: $750 `

Example 4: Multi-Platform Side Hustle

Background:

Lisa, part-time reseller with employment income
Sells across eBay, Depop, Facebook Marketplace
Annual employment: $58,000
Reselling income breakdown by platform

Platform Income Analysis: ` eBay sales: $15,000 eBay fees: ($1,950) Net eBay income: $13,050

Depop sales: $8,000 Depop fees: ($720) Net Depop income: $7,280

Facebook Marketplace: $5,000 Facebook fees: $0 Net Facebook income: $5,000

Total gross reselling income: $28,000 Total platform fees: ($2,670) Net platform income: $25,330

Other business expenses: Inventory purchases: $12,000 Shipping costs: $2,100 Packaging materials: $450 Photography equipment: $800 Home office expenses: $520 Total expenses: $15,870

Net business profit: $25,330 - $15,870 = $9,460

Total taxable income: $58,000 + $9,460 = $67,460 `

Tax implications:

No GST registration required (under $75,000)
Platform fees fully deductible
Home office expenses claimable
Consider ABN for business credibility

FAQ Section

General Tax Questions

Q: Do I need to pay tax on money I make selling my old clothes on Depop?

A: It depends on your selling activity. If you're genuinely decluttering your wardrobe and selling items for less than you paid, this is typically not taxable. However, if you're regularly buying and selling clothes for profit, or selling items for more than you paid, this becomes business income and is taxable.

Q: I only make $2,000 a year selling online. Do I still need to pay tax?

A: If this income is from genuine business activity (regular buying and selling for profit), yes, you need to declare it as income. However, you can claim business expenses to offset this income. If you're just selling personal items occasionally, it may not be taxable.

Q: Can I claim a tax deduction for driving to garage sales to buy inventory?

A: Yes, if you're operating a business and driving to source inventory, these travel expenses are deductible. Keep a log of business-related travel including date, destination, purpose, and kilometers traveled.

ABN and GST Questions

Q: My annual sales are $70,000. Do I need GST registration?

A: GST registration is mandatory when your annual turnover reaches $75,000. At $70,000, you're not yet required to register, but you can voluntarily register if it benefits your business (such as claiming GST credits on purchases).

Q: I have an ABN but earn under $75,000. Do I need to do anything special for GST?

A: No, if you're not registered for GST, you simply include the ABN on any tax invoices over $82.50 but don't charge GST. You also can't claim GST credits on your purchases.

Q: What happens if I go over $75,000 turnover mid-year?

A: You must register for GST within 21 days of going over the threshold. GST registration takes effect from the start of the month in which you exceeded the threshold, and you'll need to lodge quarterly BAS statements going forward.

Platform-Specific Questions

Q: eBay takes fees from my sales. Can I deduct the full sale amount or just what I received?

A: You declare the full sale amount as income, then separately claim the eBay fees as a business expense deduction. This gives you the same net result but provides proper documentation for the ATO.

Q: I sell on Facebook Marketplace for cash. How do I track this for tax purposes?

A: Cash sales must still be recorded for tax purposes. Keep a detailed log of all cash transactions including date, amount, item sold, and customer details where possible. Consider using a cash book or digital tracking app.

Q: Do I need separate records for each platform I sell on?

A: While not required to keep completely separate records, it's good practice to track performance by platform. Most importantly, ensure all income and expenses are recorded regardless of platform. Many sellers use spreadsheets with separate columns for each platform.

Record Keeping Questions

Q: How long do I need to keep my selling records?

A: The ATO requires you to keep records for 5 years after the income was earned or expense was claimed. This includes receipts, invoices, bank statements, and any other supporting documentation.

Q: Can I just use my bank statements as records for my reselling business?

A: Bank statements are important supporting documents but aren't sufficient alone. You need detailed records of what each transaction relates to, including sales records showing items sold, fees paid, and expenses incurred.

Q: What's the best way to track inventory for tax purposes?

A: Use a system that tracks purchase cost, sale price, and date for each item. This can be a spreadsheet or inventory management software. The key is consistent tracking that allows you to calculate cost of goods sold and profit margins.

Business Structure Questions

Q: Should I set up a company for my reselling business?

A: For most small resellers, operating as a sole trader is sufficient and simpler. Consider a company structure if you're earning significant income (over $100,000+), want asset protection, or have multiple business partners. Consult an accountant for advice specific to your situation.

Q: Can I claim home office expenses for my reselling business?

A: Yes, if you use part of your home exclusively for business purposes, you can claim home office expenses using either the fixed rate method ($0.52 per hour) or actual cost method (percentage of home running costs).

Q: My spouse helps with my reselling business. Can they be involved for tax purposes?

A: If your spouse genuinely works in the business, you can structure it as a partnership and split income between you (potentially reducing overall tax). Alternatively, you could pay them a wage for their work (with proper documentation). Consult an accountant for the best structure for your situation.

International and Cryptocurrency Questions

Q: I sell items internationally through eBay. How does this affect my tax?

A: International sales are generally GST-free (if goods are exported), but you still pay income tax on the profits. Keep records of export documentation and convert foreign currency earnings to AUD using RBA exchange rates on the transaction date.

Q: Someone paid me in Bitcoin for an item. How do I handle this for tax?

A: Convert the Bitcoin value to AUD at the time of receipt using a reputable exchange rate. This becomes your taxable income. When you later sell or exchange the Bitcoin, it may trigger a capital gains tax event.

Q: I buy items from overseas suppliers. What tax implications should I know about?

A: You may need to pay GST and customs duties on imports over $1,000. These costs become part of your inventory cost basis. If you're GST registered, you can claim credits for GST paid on business imports.

Conclusion: Staying Compliant and Maximising Profits

Understanding Australian tax obligations as a reseller is crucial for both compliance and business success. Whether you're a casual seller or building a substantial business, proper tax planning can significantly impact your profitability.

Key Takeaways:

**Know your status**: Determine whether you're hobby selling or operating a business
**Track everything**: Maintain detailed records of all income and expenses
**Consider an ABN**: Even if not required, an ABN provides business credibility
**Plan for GST**: Monitor your turnover and prepare for registration at $75,000
**Maximise deductions**: Understand all business expenses you can claim
**Stay organised**: Use accounting software or detailed spreadsheets
**Seek professional advice**: Consult an accountant for complex situations

Professional Advice Disclaimer

This guide provides general information about Australian tax obligations for resellers. Tax laws are complex and frequently change. Individual circumstances vary significantly, and what applies to one seller may not apply to another.

Always consult with qualified professionals:

**Registered Tax Agent** for tax return preparation and advice
**Chartered Accountant** for business structure and planning advice
**Australian Taxation Office** for official guidance and clarification
**Business advisor** for growth and compliance strategies

Resources for Further Information:

**Australian Taxation Office**: [ato.gov.au](https://ato.gov.au)
**Business Registration**: [abr.gov.au](https://abr.gov.au)
**Shopfront tax tools**: [Tax calculators and guides](/tax-tools)
**Professional accounting services**: [Find a registered tax agent](https://ato.gov.au/tax-professionals)

Final Thoughts

Tax compliance doesn't have to be overwhelming. With proper systems, regular record keeping, and professional guidance when needed, you can focus on growing your reselling business while staying fully compliant with Australian tax law.

The key is to start good habits early, track everything meticulously, and seek help when you're unsure. Your future self (and your accountant) will thank you for maintaining excellent records from the beginning.

Ready to optimise your reselling business for tax efficiency? Book a consultation with our recommended tax professionals or download our free tax tracking templates to get started.

Last updated: January 2025. This information is for general guidance only and should not be considered professional tax advice. Always consult with a qualified tax professional for advice specific to your situation.

Disclaimer: Shopfront is not a registered tax agent or accounting firm. This content is provided for educational purposes only. Tax laws change frequently, and individual circumstances vary. Always verify current requirements with the ATO or a qualified tax professional before making business decisions.