YOU ARE A GURU

You love what you do. Maybe it started as late-night blogging about your favourite recipes, recording unboxing videos on your phone, or sharing gardening tips on TikTok for your growing fan base.

It’s exciting, it’s fun — and at first, it probably felt like a pure hobby. But as any good Small Business Accountant will tell you, once money’s coming in, things can change fast.

🚧 The Invisible Line You Didn’t Know You Crossed

The line between “just having a bit of fun” and “running a business” is not always clear. A few free products here, a sponsored post there, a trickle of ad revenue from YouTube — suddenly you’ve got money (or valuable goods) landing in your pocket.

To the Australian Taxation Office (ATO), that’s income — and yes, they’d like a word with you about it.

Recently, the ATO updated its guidance on content creators. So if you’re:

• A blogger with affiliate links
• An influencer doing sponsored posts
• A YouTuber with ads rolling before your videos
• A TikTok wizard scoring free products to review

…you might have stepped into small business territory without realising it.

🔗 Relevant Government link for this story:

The ATO’s official page “Are you in business?” — perfect for helping readers work out if they’ve crossed from hobbyist to business:
👉 https://www.ato.gov.au/Business/Starting-your-own-business/Are-you-in-business-/

🎥 Passion Meets Profit — Now What?

Lots of us start online as hobbyists: we post because we love it, and any perks feel like a nice little bonus. But the moment you begin earning regularly, you may have officially flipped from hobbyist to business owner.

The tell-tale signs?

• You receive regular income (cash, goods, discounts, freebies — they all count).
• You’ve got expenses related to creating your content (equipment, editing software, props).
• You have the intention of making a profit — even if it’s just to cover costs at first.

Suddenly, you need to think about:

• Declaring income (including freebies!)
• Claiming deductions the right way
• Registering an ABN, GST, or insurance if needed
• Keeping proper records — because a bank statement alone won’t cut it

For a clear outline, the ATO’s Are You In Business? guide is a good place to start: Check it here

💡 It’s Not All Bad News!

Turning your passion project into a legitimate business can be an amazing step. It opens doors: you can claim eligible expenses, grow your brand, and treat your work more professionally. But the trick is to do it right from the start — not when the ATO comes knocking.

🧾 How Hills Accounting Can Help

At Hills Accounting, we love helping local content creators figure out exactly where they stand. Whether you’re a weekend hobbyist, a side-hustler, or already a thriving online entrepreneur, we can help you:

• Understand your tax obligations
• Maximise your deductions (legally!)
• Set up the right business structure and registrations
• Plan for growth without tax-time headaches

A quick chat now can save you a world of stress later.

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.

Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03 6273 7800, or email admin@hillsaccounting.com.au.