A practical guide to ABNs, GST, deductions and the ATO rules that affect every Australian eBay seller.
If you're selling on eBay regularly with the intention of making a profit, the ATO considers you to be running a business — and your income is taxable. The key test isn't how much you earn; it's the pattern of your sales activity. Selling a few old items from your garage is a hobby. Buying items specifically to resell them at a markup is a business, even if you're doing it part-time.
The ATO applies what's known as the "enterprise test." They look at factors like regularity, volume, intent to profit, and whether you operate in a businesslike manner. If you're sourcing stock, maintaining an eBay store, and reinvesting profits, you're almost certainly running a business in the ATO's eyes. For the full breakdown, see our guide to eBay seller tax in Australia.
If you're carrying on an enterprise — which most regular eBay resellers are — you're entitled to (and should) apply for an Australian Business Number (ABN). It's free and takes about 10 minutes through the Australian Business Register website. Without an ABN, any business payments you receive may be subject to withholding tax at the top marginal rate.
Having an ABN also allows you to register for GST if required, and it makes dealing with suppliers and accountants significantly easier. It's one of the first things you should set up when transitioning from casual selling to a proper reselling business.
You must register for GST once your annual turnover reaches $75,000. Turnover means your total gross sales, not your profit. Once registered, you charge GST on your sales and can claim GST credits on your business purchases (like eBay fees, packaging, and postage). You'll need to lodge a Business Activity Statement (BAS) — usually quarterly.
Some resellers voluntarily register for GST below the threshold because the GST credits on expenses can be valuable, especially if you're paying significant platform fees. Speak with an accountant to determine if voluntary registration makes sense for your situation.
As a business, you can claim deductions for legitimate business expenses. For eBay sellers, these commonly include:
The critical rule is that you must have records — receipts or bank statements — to back up every deduction you claim. The ATO requires you to keep these records for at least five years. Our complete guide to reseller tax in Australia covers deductions in more detail.
Good record keeping is the single most important thing you can do as an eBay reseller. You need to track every sale, every expense, every item you purchase for resale, and every fee eBay charges you. eBay's Seller Hub provides transaction reports, but they're not always in a format your accountant can work with easily.
Many resellers start with spreadsheets and move to dedicated accounting software as they grow. The key is to start tracking from day one — retroactively reconstructing records at tax time is painful and error-prone.
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