ATO & Compliance

Do I Have to Declare Depop Income on My Australian Tax Return?

Selling clothes on Depop feels casual. But the ATO sees a pattern of profitable sales very differently.

When Depop Income Is Taxable

If you're sourcing items to resell on Depop with the intention of making a profit — buying from op shops, markets, or wholesale — your Depop income is taxable. The casual feel of the platform doesn't change this. The ATO's criteria are about your activity and intent, not the platform you use.

The ATO's Data Matching for Depop

The ATO receives data from payment processors used by Depop (including Depop Payments). They can see the flow of funds to your bank account. Regular payments from Depop that don't appear on your tax return will attract attention.

What to Declare and Deduct

Declare gross sales (total amount buyers paid). Deduct: Depop selling fees, payment processing fees, postage, packaging, and COGS (what you paid for the items). Your taxable income is the profit after all deductions.

Common Misconceptions

"I only sell clothes, so it's not a real business" — wrong, if you're buying to resell. "Depop is just an app, not a proper platform" — wrong, the ATO treats all platforms equally. "I don't make that much" — the threshold for declaring is zero; if it's business income, all of it must be declared regardless of amount. See our Depop tax guide and hobby vs business guide.

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