Gumtree feels casual, but regular sellers can have real tax obligations. Here's what you need to know.
Selling your old furniture or unwanted gifts on Gumtree is not a taxable event — you're simply disposing of personal assets, usually at a loss. But when you start buying items cheaply and selling them on Gumtree for profit on a regular basis, the ATO treats this as business income. The distinction is about intent and pattern, not the platform you use.
If you're hitting up markets, op shops, or Facebook Marketplace to source stock that you then list on Gumtree, you're running a business. The casual feel of Gumtree doesn't change your tax obligations.
Many Gumtree transactions happen in cash, and some sellers assume this makes them invisible to the ATO. It doesn't. The ATO's data matching capabilities extend to bank deposits, and they use analytics to identify patterns of income that don't match tax returns. Even if you receive cash, spending patterns and bank deposits can reveal undeclared income.
The safest approach is simple: declare all business income regardless of how you receive payment. The penalties for getting caught not declaring are far more expensive than the tax you would have paid.
If your Gumtree selling constitutes a business (regular activity, intent to profit), you should register for an ABN. This is the same requirement as for eBay or Depop sellers. An ABN is free to apply for and protects you from having withholding tax applied to business payments. See our complete guide on reseller tax in Australia for ABN details.
One of the biggest challenges for Gumtree resellers is proving what they paid for items. Without this evidence, you can't claim COGS (cost of goods sold) as a deduction, which means you'll pay tax on gross revenue rather than profit. Always keep receipts, bank transfer records, or at minimum a written log of what you paid for each item.
For op shop purchases, keep the receipt. For cash purchases from private sellers, record the date, seller description, amount paid, and item description in a log. This doesn't have to be fancy — a simple spreadsheet or notebook works — but it must be consistent and contemporaneous.
The tax rules for Gumtree and Facebook Marketplace sellers are essentially identical. Both platforms involve predominantly local sales, often paid in cash or bank transfer, and neither provides the kind of transaction reporting that eBay or Depop offer. The record-keeping burden falls entirely on you. For tips on managing this, see our reseller bookkeeping guide.
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