Selling on eBay or Facebook Marketplace: Is It Taxable?
Short answer (as at 2026–27): selling your own unwanted stuff online is generally not taxable, but buying things to resell, or making and selling things regularly, generally is. The ATO sorts online selling into three buckets: a business, an income-producing activity that isn’t a business (often called a side hustle), and a hobby or casual sale of unwanted personal items. The first two are generally assessable. The third generally isn’t. Where you land depends on the overall picture, not on a dollar figure.
Key points
- Casual sales of unwanted personal items and genuine hobby sales are generally not assessable income, and related expenses aren’t deductible.
- “Not a business” doesn’t mean “tax-free”. A side hustle that isn’t a business can still produce assessable income that goes in your tax return.
- Buying items to resell at a profit points towards assessable income, even if it’s small and you don’t have a business.
- Capital gains tax (CGT) can still apply to some items you sell: collectables acquired for more than $500, and personal use assets that cost more than $10,000.
- GST registration is generally required once your business GST turnover reaches $75,000, not before.
- Platform reporting to the ATO covers digital goods and services, not sales of physical goods — but that doesn’t change whether your income is assessable.
The three buckets the ATO uses
The ATO’s guide for online sellers says your activity may be a business, an income-producing activity that doesn’t amount to carrying on a business, or a hobby or recreational pursuit (which includes casual sales of unwanted personal items). Its summary table runs like this:
| Type of activity | Income assessable? | Other points |
|---|---|---|
| Business | Yes, including non-cash income | Deductions and concessions, records, and registrations such as ABN and GST |
| Income-producing activity that isn’t a business | Generally yes | Eligible deductions and records; ABN and GST obligations don’t apply |
| Hobby, or casual sale of unwanted personal items | Generally no | Related expenses aren’t deductible |
The ATO is explicit that “not being in business” does not automatically mean the money is tax-free. If you want the longer background on how the line between a hobby and a business is drawn, see our guide on hobby or business: how the ATO decides.
Selling unwanted personal items
The ATO says selling unwanted personal items that were originally acquired for private use, rather than for resale, will generally not result in assessable income. Its worked example is a person who sells unwanted clothes, old toys and electronics on Gumtree over three months for $800, uses the money, and stops listing. The ATO treats that as a personal disposal, not a business or income-producing activity, and the $800 isn’t assessable.
The things that make it a casual clear-out are the same things the ATO’s other examples turn on: you bought the items for your own use, you’re getting rid of them, and it isn’t ongoing.
Hobby sales
A hobby is something done mainly for enjoyment, recreation or leisure rather than to make a profit. The ATO’s example is a collector of trading cards who sells duplicates in bundles at around the cost of postage plus a little, to fund the collection. The ATO says that’s a hobby, the receipts generally aren’t assessable and the related expenses generally aren’t deductible.
Buying to resell: assessable even if it isn’t a business
The ATO’s example of a side hustle that isn’t a business is a full-time teacher who buys items at garage sales, markets and op shops, lists them on eBay and Facebook Marketplace, and makes around $4,000 profit in a year. They spend a few hours a month, have no business plan and don’t advertise. The ATO says that isn’t a business, but because the items were acquired for resale at a profit, the amounts earned are assessable income that must be declared, and eligible expenses may be deductible.
That’s an ATO example, not a rule about $4,000. The ATO says there’s no single factor, and no dollar amount, that decides these cases.
How the ATO decides whether you’re in business
The ATO says you consider a set of factors together and form an overall impression. You don’t need to satisfy every one:
- a significant commercial purpose or character, for example setting up an online storefront, setting competitive prices, advertising and doing market research
- more than just an intention to carry on a business, meaning real active efforts and minimum business assets
- an intention to make a profit, and a reasonable prospect of making one
- repetition and regularity of the activity
- activity that is planned, organised and carried on in a business-like way
- the size and scale of the activity, compared with similar online businesses
- the activity being more than a hobby or recreation
Starting small doesn’t stop something being a business. The ATO’s examples of businesses include a person who sources and resells second-hand clothing through their own website while studying, even though the operation is small. Planning on its own isn’t enough either: the ATO says a business starts when you move beyond planning and begin actively selling with the intention of earning income.
If your selling looks like the business examples (regular listings, stock bought to resell, advertising, records), the obligations below apply. If you're unsure which side of the line you're on, the ATO suggests speaking to a registered tax professional or applying for a private ruling.
If you are in business
The ATO says an online seller carrying on a business needs to register for an ABN, and register for GST if making $75,000 or more in a 12-month period. It also lists charging GST on taxable sales, claiming GST credits, lodging business activity statements, keeping records of all transactions for at least five years, and considering PAYG instalments. Our guide on whether you need an ABN for a side hustle covers the ABN side.
The income you declare includes sales through marketplaces, your own website and social media, and amounts paid to you after platform fees or commissions are deducted. Non-cash benefits such as products or services count as well.
GST: the $75,000 threshold
The ATO’s GST page says you must register when your GST turnover (gross income from all businesses, minus GST) is $75,000 or more, or when you start a new business and expect turnover to reach that in the first year. Your GST turnover is total business income, not profit, with some adjustments. Once you’re required to register, you have 21 days. The threshold applies to businesses; it isn’t about one-off sales of personal items.
Capital gains tax on things you sell
Even when a sale is a casual one, CGT rules can apply to particular items. The ATO’s CGT page says:
- Personal use assets (things like furniture, electrical goods and household items kept for personal use or enjoyment) are subject to CGT on a gain only if they cost more than $10,000 to acquire. Capital losses on them are ignored.
- Collectables (artwork, jewellery, antiques, coins and medallions, rare books and manuscripts, postage stamps) are subject to CGT unless you acquired them for $500 or less. Losses can be deducted only against gains from collectables.
- Cars and motorcycles are exempt from CGT.
So an old laptop or couch sold at a loss is not a CGT issue, but an antique or piece of jewellery bought for more than $500 and sold at a gain can be. How to work out the gain is beyond this guide: see the ATO or a registered tax agent. Our guide to how side hustle income is taxed covers the general income tax side.
Will the ATO know?
Under the Sharing Economy Reporting Regime (SERR), electronic distribution platform operators must report income earned by suppliers when payments flow from a customer to a supplier through the platform. They report twice a year: by 31 January for 1 July to 31 December, and by 31 July for 1 January to 30 June. Reporting started on 1 July 2023 for taxi (including ride-sourcing) and short-term accommodation platforms, and expanded to all other reportable transactions from 1 July 2024. The ATO’s list of reportable activities covers digital goods (such as eBooks, videos, subscriptions, tips and donations) and digital services: ride-sourcing and transport, accommodation and other fixed spaces, hiring out moveable items (cars, tools, clothing, equipment) and task-based services. Selling physical goods isn’t on that list, which the ATO says isn’t exhaustive. If you hire items out or offer services through a platform, though, expect that income to be reported. And whether or not a platform reports anything, the tests above decide whether your income is assessable.
Common mistakes
- Assuming small means tax-free. The ATO treats resale for profit as assessable even without a business.
- Assuming any amount of selling is a hobby. A hobby is mainly for enjoyment, with sales incidental to it.
- Forgetting non-cash income. Products and services you receive count.
- Ignoring records. Sellers who keep sales and expense records can answer the question when it matters.
- Mixing up the GST threshold with the business test. You can be in business well below $75,000; registering for GST is a separate question.
Where to get help
The ATO’s online selling guide and its tax tips for side hustles are the starting point. A registered tax agent can look at your circumstances, and the ATO can give a private ruling. Our side hustle tax calculator gives a rough idea of tax on extra income, and tax time for side hustlers covers what goes in the return.
This guide explains the rules as at 28 October 2026 and is general information, not tax, legal or financial advice. The ATO's online selling guide was last updated on 6 October 2026. Check the ATO website for the current version, and speak to a registered tax agent about your own circumstances.
Frequently asked questions
Do I pay tax on things I sell on Facebook Marketplace or eBay?
It depends on what you're selling and why. The ATO says amounts from a hobby or from the casual sale of unwanted personal items are generally not assessable income. But if you bought items to resell at a profit, or you're running a business or side hustle, the income is generally assessable and goes in your tax return.
Is selling a few things I no longer need taxable?
Generally not. The ATO's example is someone who sells unwanted clothes, toys and electronics once and stops. Selling unwanted personal items you originally bought for private use will generally not result in assessable income. Capital gains tax can still apply to some items, such as collectables you acquired for more than $500.
Do I need an ABN to sell on eBay?
The ATO says that if you're carrying on a business as an online seller you need to register for an ABN. If your activity is a side hustle that isn't a business, the ATO says ABN and GST obligations don't apply. Whether you're in business depends on the overall picture, so see the ABN guide and consider a registered tax professional.
At what amount do I register for GST?
The ATO's GST threshold is a GST turnover of $75,000 or more. Turnover is your total business income, not your profit, with some adjustments. It applies to businesses, not to casual sales of personal items.
Does the ATO know about my online sales?
The Sharing Economy Reporting Regime makes platforms report income from digital goods and services — such as ride-sourcing, short-stay accommodation, hiring out items and task-based work — to the ATO twice a year. Selling physical goods isn't on the ATO's list of reportable activities. Either way, whether income is assessable depends on the ATO's rules, not on whether a platform reported it.
Sources
This article is general information only, not tax, legal or financial advice. It doesn't consider your personal circumstances. For advice on your situation, speak to a registered tax agent or licensed adviser, and always check current requirements with the official source linked above.