What is a hobby?

Hobby is a pass time and a leisure activity to recreate yourself and get pleasure in a spare time.

Benefits of being a hobby?

Hobby gives you the personal enjoyment and satisfaction.

  • You can gift or sell your hobby for the cost of materials.
  • You can do it in your spare time or when people contact you to get these surprises.
  • You don’t have the reporting obligations of a business.

How do I know if it’s a business or hobby?

It is very important to differentiate and understand if it’s a hobby or business for tax, profit and all other legal purposes.

Key questions to ask yourself to identify,

  • Is the activity being undertaken for commercial reasons?
  • Is your main intention, purpose or prospect to make a profit?
  • Do you regularly and repeatedly undertake your activity?
  • Is your activity planned, organized and carried out in a businesslike manner?




What is a business?

Business is an activity with perfect marketing. Directly or Indirectly the main purpose of business is profit.

Benefits of being a business?

  • You’ll have access to government information, services and concessions for business.
  • You can establish a business identity when selling to customers and other businesses.
  • You can claim tax deductions for business expenses against your taxable income.
  • It may give you the flexibility to manage your time and work your own hours.
  • You’ll have to incorporate your business with several government institutes.
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