Understanding your tax obligations as a reseller in Australia — and how to stay on the right side of the ATO.
The ATO doesn't automatically treat every online sale as taxable income. The distinction comes down to whether your selling activity is a hobby or a business. For casual, one-off sales of personal items, you generally don't need to declare income. But for regular resellers — people who buy stock with the intention of making a profit and sell consistently on platforms like eBay, Depop, or Gumtree — the ATO applies what's known as the pattern of sales test.
The pattern of sales test looks at factors like how often you sell, whether you buy items specifically to resell, how organised your operation is, and whether profit is your primary motive. If you're posting new listings regularly, sourcing stock from op shops, markets, or wholesale, and managing inventory — even casually — the ATO is likely to view that as a business. Once you're classified as a business, you must register for an ABN, declare your income, and can (and should) claim eligible expenses.
The good news is that Australian tax law also allows resellers to claim a wide range of deductions: platform fees (eBay final value fees, Depop's transaction fees, Gumtree listing fees), postage and packaging costs, the cost of goods themselves, photography gear used for listings, and a portion of phone and internet expenses. The key is keeping accurate records — something most resellers struggle with because their bookkeeping is spread across spreadsheets, platform exports, and bank statements.
Built for resellers
Franked connects your selling platforms, tracks every fee and expense, and produces the clean records the ATO expects — so tax time is straightforward, not stressful.
Connect eBay, Depop, Gumtree and more. All your sales data in one place, automatically.
Platform fees, postage, and COGS tracked automatically — so your deductible expenses are always captured.
See true profit after COGS. Know exactly what you're making — and what you can claim.
Export clean reports your accountant will understand — without spending hours explaining how reselling works.
FAQ
If the ATO determines you are running a business rather than a hobby, yes — you must declare your eBay income. The key test is the pattern of sales test: if you sell regularly, buy stock with the intention of reselling, or operate in a business-like manner, you are likely running a business.
The ATO's pattern of sales test looks at factors like frequency of sales, whether you buy items specifically to resell, whether you operate in an organised business-like manner, and whether profit is a primary motive. If several of these apply, the ATO will treat your activity as a business rather than a hobby.
If you are running a business (as determined by the ATO's tests), you are required to register for an ABN. Selling casually without an ABN is fine for genuine hobby sellers, but regular resellers who meet the business criteria should register.
Australian resellers can claim deductions for platform fees (eBay, Depop, etc.), postage and packaging costs, cost of goods sold, photography equipment used for listings, and a portion of phone and internet costs. Keeping accurate records of all expenses is essential.
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