For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    TaxKiln Australia
    TaxKilnAustralia tax guidance

    E-Commerce, Online Selling and GST

    Tax obligations for Australian online sellers on Amazon, eBay, Etsy and Shopify: the $75,000 GST registration threshold, marketplace facilitation rules, GST on low-value imported goods, trading stock valuation, platform fee deductions, dropshipping, multi-platform income aggregation, and ATO data matching via SERR.

    Australian e-commerce sellers have the same core tax obligations as any other sole trader, but platform fees, inventory valuation, shipping costs and marketplace GST rules create specific complexity. You must register for GST when turnover reaches $75,000 across all sales channels combined under GST Act s 23-15. For non-resident sellers, Australian marketplaces such as Amazon and eBay collect and remit GST on sales to Australian consumers under the electronic distribution platform provisions. The ATO receives sales data from marketplaces, payment processors and SERR, making omitted online income increasingly detectable.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact ATO. Read our editorial scope →

    Business vs hobby: where the ATO draws the line

    The ATO applies the same hobby-versus-business tests to online selling as to any other activity. Business indicators include intention to profit, regular and systematic activity, business-like records, significant turnover, effort and time invested, and repeated transactions. Hobby indicators include sporadic sales of personal items, no profit intention, and selling to clear out possessions. The practical line: occasional sale of personal items on Facebook Marketplace or eBay is generally not a business. Buying stock specifically to resell, manufacturing products, or running a shopfront (even online-only) with regular listings is almost certainly a business.

    Income and deductions for online sellers

    All sales income is assessable, whether received via platform payout, PayPal, bank transfer or cash on collection. This includes the sale price of goods (before platform fees, which are a separate deduction), shipping fees charged to buyers, and any other income from the e-commerce activity.

    Common deductions

    Cost of goods sold (purchase price of inventory, raw materials, manufacturing costs), platform fees and commissions, shipping and postage, payment processing fees, home office and storage costs (on a reasonable apportionment basis), photography and listing costs (camera equipment depreciation, props, editing software), vehicle costs for picking up stock or delivering to the post office (logbook or cents-per-km method), and accounting software and professional fees.

    Trading stock rules for inventory sellers

    If you hold inventory for sale, trading stock rules under ITAA 1997 Division 70 apply. Opening and closing stock must be valued at year-end using cost, market value, or replacement value. The change in stock value affects your taxable income: if you bought $20,000 of stock during the year and have $5,000 remaining at 30 June, your cost of goods sold deduction is $15,000. Stock taken for personal use must be brought to account at market value.

    GST obligations for online sellers

    Register for GST when your GST turnover reaches or is expected to reach $75,000 in a 12-month period under GST Act s 23-15. GST turnover is calculated across all platforms and sales channels combined, not per-platform. Once registered, you charge 10% GST on taxable sales, lodge BAS (monthly or quarterly), and claim input tax credits on business purchases.

    Marketplace GST rules (from 1 July 2024)

    The ATO treats certain electronic distribution platforms (EDPs) as the supplier for GST purposes on some transactions. For goods sold through a marketplace to Australian consumers by non-resident sellers, the platform (Amazon, eBay) is responsible for collecting and remitting GST. For Australian-resident sellers on Australian platforms, you remain responsible for your own GST obligations as normal.

    Exports and international sales

    Exports of goods from Australia are generally GST-free if goods are exported within 60 days of payment or invoice. Sales to Australian consumers of imported low-value goods ($1,000 or less) may require the platform or overseas supplier to collect GST under the low-value goods provisions in GST Act Subdivision 84-C.

    Amazon FBA: specific tax treatment

    If you use Amazon Fulfilment by Amazon in Australia, you ship stock to Amazon's fulfilment centres and Amazon stores, picks, packs and ships to customers. Your assessable income is the full selling price, not the net payout after fees. Amazon's referral fees, FBA storage fees, pick-and-pack fees, and any advertising fees are separate deductible expenses. Stock held in Amazon's warehouse remains your trading stock for tax purposes and must be valued at year-end.

    Dropshipping

    In a dropshipping model, you take orders and a third-party supplier ships directly to the customer. Your assessable income is the full sale price to the customer, and the amount you pay the supplier is your cost of goods. Because you never take title to or hold inventory in most dropshipping arrangements, trading stock valuation at year-end does not apply. If you are GST-registered, you charge GST on sales to Australian customers. Purchases from overseas suppliers are generally GST-free imports below $1,000, or subject to GST on importation above $1,000.

    Multi-platform selling and ATO data matching

    Many sellers operate across multiple platforms simultaneously. The ATO aggregates all platform income when assessing your tax position. GST turnover is calculated across all platforms and channels combined. The ATO receives data from Australian marketplaces via programs, payment processors via third-party reporting, the Sharing Economy Reporting Regime (SERR) for qualifying platforms (fully phased in from 1 July 2024), and banks via deposit matching.

    Importing goods for resale and foreign currency

    Importing goods for resale may attract GST and customs duty on importation above the $1,000 low-value threshold. Import costs (duties, freight, insurance) form part of your cost base for the goods. All sales in foreign currency must be converted to AUD at the exchange rate at the time of each transaction for both income tax and GST reporting purposes. The ATO accepts the RBA daily rate or the rate from a reputable financial data source.

    Statute references

    • A New Tax System (Goods and Services Tax) Act 1999 s 23-15 (GST registration threshold, $75,000)
    • GST Act Subdivision 84-C (Low-value imported goods, $1,000 threshold)
    • ITAA 1997 Division 70 (Trading stock rules)
    • ATO Sharing Economy Reporting Regime (SERR), fully phased in from 1 July 2024
    • ATO 'Online selling' guidance and programs
    • GSTR 2017/1 (cross-border digital supplies — GST applies to inbound digital services and low-value imported goods from 1 July 2018)
    • GST Act Division 84 (reverse charge for supplies to GST-registered recipients)
    • GST Act Division 142 (excess GST — recovery and refund mechanics for incorrectly charged GST)
    • GSTR 2000/31 (Supplies connected with Australia)

    Frequently asked questions

    Do I need an ABN to sell on eBay, Amazon or Etsy in Australia?+
    If you are carrying on a business of selling goods online (regular listings, buying stock to resell, intention to profit), you need an ABN and must declare all sales income in your tax return. Occasional sale of personal items (clearing out possessions on Facebook Marketplace or eBay) is generally not a business and does not require an ABN. The ATO assesses business status based on regularity, intention to profit, effort invested, and whether you have stock purchased specifically for resale.
    How do I calculate GST when selling through a marketplace?+
    For Australian-resident sellers on Australian platforms, you are responsible for your own GST obligations. Your GST calculation is based on the full sale price (including the GST component), not the net payout after platform fees. Platform fees are a separate deductible expense. If you sell through a marketplace as a non-resident seller to Australian consumers, the platform is treated as the supplier for GST purposes and is responsible for collecting and remitting GST.
    Can I claim platform fees and payment processing fees as deductions?+
    Yes. All platform fees (eBay listing and final value fees, Amazon referral and FBA fees, Etsy listing and transaction fees, Shopify subscriptions), payment processing fees (PayPal, Stripe, Square), shipping costs, packaging materials, and other costs directly related to online selling are deductible business expenses. Claim them in the year they are incurred.
    What data does the ATO receive about my online sales?+
    The ATO receives data from Australian marketplaces (eBay, Amazon AU, Gumtree) via programs, payment processors (PayPal, Stripe) via third-party reporting, the Sharing Economy Reporting Regime (SERR) for qualifying platforms (fully phased in from 1 July 2024), and banks via deposit matching. The ATO cross-references this data against tax returns and sends 'nudge' letters where reported income does not match detected transactions.

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