Running it like a business (Australia)
Hobby or business, ABN, sole trader or company, the GST line, and what you can actually claim. The Australian version, because the American one will cost you.
Most music-business advice online is American, and on this subject it is worse than useless. LLCs, W9s, filing with the IRS and registering as your own publisher to take the publisher's share — none of that is how it works here. Doing the American version in Australia will cost you money and time.
Hobby or business
There is no single moment when one becomes the other, and no income figure that decides it. The ATO looks at whether you intend to make a profit and could reasonably expect to, whether you're doing it repeatedly and in an organised way, and whether you've taken the formal steps: a registered business name, an ABN, separate records, a separate bank account.
- A hobby doesn't declare the income and can't claim the expenses.
- A business declares all of it and can claim against it.
- You don't get to pick whichever suits you. The facts decide, and the ATO can rule on it if you ask.
General information only, checked 21 September 2026, and not tax or financial advice. Thresholds and rates change. Check the ATO and business.gov.au pages linked at the end, and talk to an accountant about your own situation.
The rest of this guide is inside droplr
Free accounts included. No card, and the knowledge board is open on every plan.
- The test the ATO actually applies to hobby versus business
- Why not having an ABN can cost you 47% of a payment
- Sole trader against a company, with the real numbers
- The $75,000 line and the 21 days you get
- What to keep, from the first gig
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Where this comes from
- business.gov.au — business or hobby
- business.gov.au — sole trader vs company tax
- ATO — registering for GST
- Australian Business Register — apply for an ABN
- APRA AMCOS — funding and grants
- Berklee Online — Music Business Handbook (business entity, grants)
Facts checked 21 September 2026. General information for independent artists, not legal, tax or financial advice. Rules, prices and deadlines change: check the official pages linked at the end, and get advice for your own situation.