Hobby farm ideas and advice

2 posts

Member for

7 years 5 months
MJH
Last seen: 11/06/2016 - 14:47
Joined: 11/06/2016 - 14:40

Hobby farm ideas and advice

Hi,


I have 160 Acres of land in SA and need some Hobby Farm information.

 

If we start a hobby farm but only make a small amount of money each year, say $10k does that mean we can't claim any of our expenses such as interest on the loan, insurance etc...? I do not live on the land, we use it as recreation.

 

If we grow plants and sell them are there any rules or processes we need to abide by? The plants are not edible.

 

Thanks for your help in advance.

Last seen: 03/08/2018 - 21:05
Joined: 11/10/2016 - 07:45

Hi MJH,

Excellent question and as an accountant this is something that is often asked.

The basic rule that the ATO seems to apply is if the property is profitable, they will want to tax it. If it makes a loss, its more likely to be a hobby.

This is a really simple and pessimstic view and obviously this is far more complicated.  There are a number of factors which you should consider if you are running a business or just undertaking a hobby. I always find the following site a useful guide to pass on.

https://www.business.gov.au/info/plan-and-start/a-business-or-a-hobby

Have a look and please by all means, ask me whatever questions you may have. Only too happy to help.

Cheers

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