Selling or Offering Services Online in Australia: The Basics for Small Operators

4 min read

Selling the occasional item from around the house is different, in the eyes of the law, to running even a small ongoing operation selling goods or offering services. Most sellers never think about where that line sits until something goes wrong. Here's the basic shape of it, and what to do about it.

Selling privately versus selling "in trade"

If you're clearing out a few things you no longer need, a couch, some kids' clothes, an old phone, that's generally private selling. You're not in the business of selling, you're just selling things you own.

Selling "in trade or commerce" is different. It generally describes selling as part of a business or business-like activity: buying items to resell, making things to sell regularly, offering a service for payment on an ongoing basis, or otherwise selling in a way that has some regularity, system or commercial character to it rather than being a one-off clear-out. The exact line depends on the facts of what you're doing, how often, and how it's set up, not on how you personally label it.

This distinction matters because different consumer protection rules apply depending on which side of that line you're on.

Australian Consumer Law and repeat sellers

Australian Consumer Law includes consumer guarantees that generally apply to goods and services sold in trade or commerce, things like the guarantee that goods are of acceptable quality and match their description. These protections are aimed at commercial sellers, not at someone selling their own second-hand couch once.

Where it gets less clear-cut is repeat selling. Someone who lists items regularly, buys stock to resell, or runs what amounts to an ongoing small operation can find themselves considered to be selling in trade or commerce even without a registered business name, simply because of the pattern and character of what they're doing. If that's a description that fits your selling activity, it's worth understanding that consumer guarantee obligations can apply to you, not just to registered retailers.

This is a fact-specific area and the guidance above is general in nature, not a determination of your own situation. If you're unsure whether your selling activity counts as trade, your state or territory's fair trading or consumer affairs regulator, or the ACCC, publishes guidance on this distinction, and a solicitor or accountant can advise on your specific circumstances.

Do you need an ABN

An Australian Business Number is generally required once you're carrying on an enterprise, which broadly means operating with some intention of profit and a degree of regularity or system, rather than making occasional private sales. A single sale of your own second-hand item typically doesn't require one. A regular selling or services operation generally does, and having one lets you invoice properly, claim relevant business expenses, and deal with businesses and platforms that expect one.

If you're not sure whether what you're doing has crossed into "carrying on an enterprise", the Australian Business Register and the ATO publish guidance on this, and it's a reasonable question to put to an accountant early rather than after you've been trading a while.

GST registration

In Australia, once your business turnover reaches $75,000 in a 12-month period, you're required to register for GST. Below that threshold, registration is generally optional. Turnover here means your gross business income, not profit, so it's worth tracking from early on rather than estimating it once you're close.

If you're getting close to that threshold or expect to cross it, it's worth registering in good time rather than after the fact, since backdated GST obligations can be more complicated to sort out than registering as you approach the number.

Keep records from the start

Whether or not you're required to register for anything yet, keeping basic records pays off: what you sold, for how much, to whom (at least enough to identify the transaction), your costs, and any correspondence about faults, returns or complaints. If a dispute ever comes up, or you do end up registering for an ABN or GST later, having clean records from the beginning is far easier than reconstructing them afterwards.

Simple is fine. A spreadsheet with date, item or service, amount, and buyer/customer reference is enough for most small operators starting out, and it can grow into something more structured as the activity grows.

This is general information, not advice

Everything above is general information to help you understand the landscape, not tax or legal advice, and it doesn't account for your specific circumstances. Whether you're in trade, whether you need an ABN, when you need to register for GST, and what records you're required to keep all depend on your particular situation. Check with the ATO or a registered accountant before making decisions about your own selling or services activity, and consult your state or territory's consumer affairs regulator on Australian Consumer Law questions specific to your situation.

What this means practically

If you're doing the occasional clear-out sale, none of this changes much for you: sell privately, describe items honestly, and move on. If you're selling or offering services with any regularity, buying to resell, or running something that looks and feels like a small business even if it's part-time, it's worth taking an hour to work out where you actually sit against the trade/private line, whether you need an ABN, and how close you are to the GST threshold, before it becomes a bigger cleanup later.

Ready to list? Head to /sell and check current requirements at /rules. If you're setting up as an ongoing seller or service provider, /listings is worth a browse to see how other small operators in your category are presenting themselves.