Is pet sitting a hobby or a business?
There is no single test. The ATO's small business newsroom puts the general idea like this: "Generally, carrying on a business involves ongoing and repeated activities with the intention of making a profit." It adds that you may be carrying on a business without realising it once you earn money from an activity regularly.
business.gov.au lists the factors to weigh. Paraphrased, they are:
- You intend to make a profit, or genuinely believe you will, even if not in the short term.
- You have decided to start a business and done something about it, such as registering a business name or getting an ABN.
- You repeat similar activities.
- The size of your activity is consistent with other businesses in the industry.
- The activity is planned, organised and carried out in a businesslike way, for example with business records, a separate bank account or a registered business name.
For a pet sitter, the repeated part is usually the giveaway. Walking a neighbour's dog as a favour now and then does not usually look like a business. Taking bookings from people you do not know, setting rates, and walking dogs most weekdays is ongoing, repeated and aimed at a profit. The ATO's article also lists one-off transactions and not intending to make a profit as signs that you are not in business.
Can I get an ABN for occasional pet sitting?
Not if it is a hobby. business.gov.au is direct about it: "You are not eligible for an ABN for a hobby". If you sell to businesses, they may ask for an ABN when they pay you. In that case the same page says you can use a Statement by a supplier form, which tells the business you are doing the work as a hobby so it does not withhold from your payment.
What happens if I do not have an ABN?
If a business pays you and you have no ABN, business.gov.au says it "must withhold 47% from payments they make to you for tax purposes." That is a large share of your pay held back. If your sitting or walking is a business, getting an ABN avoids it. If it is genuinely a hobby, the Statement by a supplier form is the route that page describes.
When do I need to register for GST?
The ATO says you must register for GST "when your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more". You also need to register when you start a business and expect to reach that threshold in the first year. Before you register, "you need to have an Australian business number (ABN)." Once you are required to register, you have 21 days to do it. Below the threshold, registering is optional.
So if your turnover is under $75,000 and you do not expect to reach it, GST registration is your choice. An ABN is a separate question, decided by whether you are running a business at all.
How to get an ABN
The ATO's GST page notes that you can get an ABN when you first register your business name or at a later time, and business.gov.au links to the application. If you are unsure whether you qualify, read the hobby or business factors above first, because an ABN is for people carrying on a business.
Pet sitting on Petme
On Petme you set your own rates and choose which bookings to accept, and you keep up to 90% of every booking. Every sitter completes identity verification and a background check. Whether your sitting counts as a business depends on the factors above, not on the platform you use, so keep simple records of your bookings and expenses from the first one. If you are starting out, our guide to becoming a pet sitter in Australia covers the steps, and pet sitting jobs in Australia lists sitter work by city.
ABN and pet sitting: FAQ
Do I need an ABN to walk dogs in Australia?
You need an ABN if your dog walking is a business, meaning ongoing, repeated work done to make a profit. A hobby is not eligible for an ABN, according to business.gov.au. Walking dogs for paying clients most weeks usually looks like a business.
Can I pet sit without an ABN?
Yes, if it is a hobby, because a hobby is not eligible for an ABN. But business.gov.au says that without an ABN, other businesses must withhold 47% from payments they make to you. If your sitting is regular and aimed at a profit, it points to a business, and then you should get one.
Is pet sitting a hobby or a business for tax?
It depends on how you do it. The ATO says carrying on a business generally involves ongoing and repeated activities with the intention of making a profit. Regular paid bookings point to a business; one-off favours with no profit motive point to a hobby.
Do pet sitters need to register for GST?
Only once your GST turnover reaches $75,000 a year, or you expect it to in your first year. The ATO says you need an ABN before you can register, and you have 21 days to register once you are required to. Below $75,000, registering is optional.
What is the 47% withholding for no ABN?
If a business pays you and you have not given it an ABN, it must withhold 47% from the payment for tax purposes, according to business.gov.au. A hobbyist can avoid this by giving the business a Statement by a supplier form.
