The short answer is yes, if you're running a business. Here's how to know which category you fall into.
Selling a few old items from your house on eBay is not taxable — that's disposing of personal assets. But buying items to resell at a profit through your eBay store, even if only part-time, is a business. The ATO looks at regularity, profit intent, and commercial behaviour. Most regular eBay sellers with active stores clearly qualify as businesses.
Declare your gross sales (total amounts buyers paid before eBay fees). eBay fees are claimed as separate deductions. If your total eBay sales for the year were $35,000 and eBay charged $4,500 in fees, you declare $35,000 income and claim $4,500 in deductions (plus COGS, postage, and other expenses).
Through data matching, the ATO receives information about eBay transactions. They know what you received. If your declared income doesn't match, you'll be contacted. The smartest approach is to declare accurately from the start.
If you've been selling on eBay without declaring income, consider making a voluntary disclosure to the ATO. Voluntary disclosures typically receive lower penalties than non-compliance discovered by the ATO. Speak with a tax professional. See our eBay tax guide and hobby vs business guide.
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