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How to File Taxes if Your Business is on Etsy in Australia

If you’re earning income through Etsy in Australia, you may have tax obligations with the Australian Taxation Office (ATO). Whether you’re a hobbyist turned business owner or an established seller, understanding how to report Etsy earnings is essential for staying compliant.

1. Determine if You’re Running a Business or a Hobby

The ATO distinguishes between hobbies and businesses. If you’re making a profit and operating with intention to grow, you’re likely running a business—even if it’s small or part-time.

Learn more about the distinction on the ATO website here.

2. Register for an ABN

If you’re operating as a business, you must apply for an Australian Business Number (ABN). This helps the ATO track your business income and deductions.

Register for an ABN here.

3. Consider GST Registration

You only need to register for GST if your business income is expected to exceed $75,000 per year. If so, you’ll need to charge 10% GST on eligible sales and report this via your BAS (Business Activity Statement).

4. Track All Etsy Income and Expenses

Etsy income is considered assessable income and must be declared in your tax return. Make sure to track:

  • Total sales income (converted to AUD)
  • Fees deducted by Etsy
  • Shipping costs
  • Advertising and marketing expenses
  • Costs of goods sold (materials, tools, packaging)

5. Keep Accurate Records

The ATO requires businesses to retain records for at least five years. Use spreadsheets or accounting software like Xero, QuickBooks, or even Etsy’s built-in reports to track everything.

6. Lodge Your Tax Return

If you’re a sole trader, declare your Etsy business income in your individual tax return using the “Business and Professional Items” section. Include all income and expenses to calculate your net profit or loss.

7. Consider Quarterly BAS if GST Registered

If you are registered for GST, you’ll need to lodge a BAS either quarterly or monthly, detailing your GST collected and paid on expenses.

8. Work with a Tax Agent

Tax laws can be tricky—especially with online platforms and international transactions. Working with a registered tax agent ensures you’re compliant and may help you reduce your tax bill through legal deductions.

Key ATO Reference

For official guidance, visit the ATO’s guide to business income and deductions.

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You’ve chosen TAXOPIA LITE, a self-lodgment service. Please be aware that tax offices are starting to phase-out DIY paper lodgments and are encouraging the transition to digital.

Don’t be the last one to enjoy hassle-free digital lodgments. Upgrade to TAXOPIA BASIC PACKAGE today with a special limited-time $100 discount* and enjoy the benefits of having our accountants lodge for you.

As a bonus benefit for working with us, you get a lodgment deadline extension period to avoid penalties.

*The discount only applies to lodgments for one financial year. For clients requiring lodgment for multiple financial years, the discount applies only on the first year. all succeeding tax returns after that will be at regular price.

For the LITE Package: Please note that is a self lodgment service and does not include electronic lodgment by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

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TAXOPIA LITE is a self-lodgement service. Please be aware that for majority of tax payers, the due date for self-lodged returns is 31st of October.

If you’re self-lodging overdue tax returns, it may put you at risk of incurring penalties from the ATO. We recommend you upgrade to TAXOPIA BASIC PACKAGE and enjoy the benefits of having our accountants lodge for you and get a lodgement deadline extension period to avoid penalties.

For the LITE Package: Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

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*Excludes public holidays, weekends and office closure dates.

A friendly reminder…

Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

If this option suits your needs, please click below to get started.

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You’ve chosen the Taxopia Lite Package…

Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

If this option suits your needs, please click below to get started.

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* Sole Trader Package pricing conditions, please take note the pricing excludes the following items; however, these services can be provided for an additional cost.

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote.

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* Premium Package pricing conditions ($1300+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

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* Standard Package pricing conditions ($850+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Basic Package pricing conditions: ($425+ GST):

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Please note that ALL our plans exclude the following:

Please contact us for a customised quote if you require help on any of the excluded items.

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Company or Trust Tax Return for Accountants & Bookkeepers

* BASIC PLAN ($425+ GST) CONDITIONS:

* STANDARD PLAN ($850+ GST) CONDITIONS:

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Premium Package pricing conditions ($1300+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Standard Package pricing conditions ($850+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Basic Package pricing conditions: ($425+ GST):

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Please note that ALL our plans exclude the following:

Please contact us for a customised quote if you require help on any of the excluded items.

Get started now!

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