Selling one jacket from your wardrobe is not the same activity as buying thirty jackets to resell for profit. Both sales might happen through eBay or Depop, but the Australian business and tax questions are different.
That is why “Do I need an ABN?” cannot be answered from your sales total or marketplace alone.
Quick answer
You generally do not need an ABN simply to sell a few of your own unwanted items as a private individual. If you regularly source stock, intend to make a profit and run the activity in an organised, business-like way, you may be carrying on a business and be entitled to an ABN.
An ABN is not compulsory for every business, according to business.gov.au, but it is free and commonly needed to register for GST, register a business name and identify a business. eBay also asks for business details when a seller registers as a business.
Written by Nathan, an Australian reseller and the founder of Listalong. The government and marketplace sources in this guide were checked on 20 July 2026.
The marketplace does not decide whether you are a business
You do not become a business merely because you open Depop, create an eBay account or make your first sale.
The Australian Taxation Office looks at what you are actually doing. Its guidance describes a business as continuous and repeated activities carried on for the purpose of making a profit. It also says a one-off transaction can be a business when it is intended to be repeated or is the first step in starting one.
The Australian Business Register says there is no single test. Indicators include:
- A significant commercial activity with reasonable size and scale
- An intention and prospect of making a profit
- Repeated sales activity
- Systematic, organised and business-like operation
- Records being kept
- Relevant knowledge or skill
- Operating in a similar way to other businesses in the field
One indicator does not settle the question. Look at the whole pattern.
Three reseller examples
1. Clearing out a wardrobe
Mia sells six dresses and two pairs of shoes she bought for herself. She is trying to recover some of what she spent, does not replace the stock and has no plan to repeat the activity.
That looks more like selling private possessions than operating a resale business. Opening a marketplace account does not, by itself, make an ABN necessary.
2. Sourcing stock every week
Jordan visits op shops every Saturday, buys clothing selected for resale, records the purchase cost, photographs it in batches, lists on eBay and Depop and aims to earn a margin after fees and postage.
That activity shows several business indicators: profit intention, repetition, stock acquisition, records and an organised process. Jordan should review ABN entitlement and tax obligations rather than treating every sale as a wardrobe clear-out.
3. A hobby that has grown
Alex begins by selling personal clothes, then notices regular demand. Six months later Alex buys stock specifically to resell, has a dedicated storage area and lists every week.
The original activity may have been private, but circumstances can change. The ATO says you should reassess when an activity becomes more commercial or profit-focused.
A reseller business-indicator checklist
The more of these statements are true, the stronger the case that you should investigate business status:
- I buy items specifically to resell.
- I aim to make a profit, not simply recover part of my original cost.
- I list and sell repeatedly.
- I keep stock, sales and expense records.
- I have a pricing method or budget.
- I advertise to the public.
- I use SKUs, storage locations or an inventory system.
- I reinvest sale proceeds into more stock.
- I have begun setting up a shop, website or business process.
- I expect the activity to continue.
The checklist is a prompt, not a legal test or scorecard. The official ATO “Are you in business?” guide and ABR entitlement guidance are the better place to test your facts.
What eBay Australia asks for
eBay Australia’s seller-registration guide distinguishes between individual and business sellers.
Individual sellers are asked for personal identity information, including their name, address, date of birth and government-issued photo identification.
If you register as a business, eBay says it also needs business information. Depending on the entity, this includes the legal business name, business address and an ABN, ACN or ARBN.
This is an account-verification requirement. It does not replace your own responsibility to decide whether the activity is a business for Australian tax purposes.
Do not choose “individual” solely to avoid business verification if you are genuinely operating a business. Keep the account type, bank-account details and legal information consistent.
What about Depop?
The same Australian business-status question applies even if Depop’s signup flow looks more like a personal marketplace account.
Your tax position does not disappear because the platform does not ask for an ABN on the first listing screen. Equally, a casual seller should not apply for an ABN merely because another seller says everyone on Depop needs one.
Use the facts of your activity: what you acquire, why you sell, how regularly you operate and whether the process has a commercial character.
ABN and GST are not the same registration
This is the most common point of confusion.
An ABN identifies a business or enterprise. GST registration creates separate obligations to collect and report GST on taxable sales and claim eligible GST credits.
The ATO says a business or enterprise must generally register for GST when its current or projected GST turnover reaches $75,000. Turnover means gross business income, not profit.
Below that threshold, GST registration is generally optional. You still may hold an ABN and have income-tax and record-keeping obligations without being registered for GST.
| Question | ABN | GST registration |
|---|---|---|
| What is it? | A business identifier | A tax registration |
| Is there a general $75,000 threshold? | No | Yes, for most businesses |
| Can you have one without the other? | Yes | You need an ABN before registering for GST |
| Does it remove income-tax obligations? | No | No |
If your turnover is approaching the threshold, use current ATO guidance or professional advice. Do not wait for net profit to reach $75,000; that is not how GST turnover is measured.
An ABN is not a tax-free pass
An ABN does not:
- Make all expenses deductible
- Turn a hobby into a business
- Remove the need to declare business income
- Mean you are automatically registered for GST
- Create a company
- Separate a sole trader from their business legally
The ABR also warns that not everyone is entitled to apply. Be especially cautious with websites that charge to “get” an ABN. The official Australian Government registration is free.
Records to keep from the beginning
Even if your status is still developing, simple records make the eventual decision much easier.
Keep:
- Purchase date and cost of stock
- Marketplace sale price
- Platform and payment fees
- Postage and packaging costs
- Refunds and returns
- Travel or other expenses you intend to ask an adviser about
- A note identifying personal wardrobe items versus stock bought for resale
- Receipts and marketplace statements
For inventory bought in batches, assign a stock number when the item is photographed. Use the same number on eBay, Depop and the storage bag. This also helps prevent double-selling when you sell on eBay and Depop at the same time.
A practical next step
If you are only clearing personal items, keep a basic record of what was sold and why you owned it.
If you are regularly sourcing for profit, work through the official business indicators, collect your records and consider applying through the Australian Government Business Registration Service. If the facts sit in the middle, a registered tax agent can help classify the activity before it grows further.
Then price with the real costs in mind. The guide to pricing second-hand clothing in Australia shows how to use sold evidence, postage and fees rather than guessing from active listings.
Sources checked
These sources were checked on 20 July 2026:
- Australian Taxation Office: Are you in business?
- Australian Business Register: ABN entitlement
- business.gov.au: Difference between a business and a hobby
- Australian Government Business Registration Service: apply for an ABN
- ATO: Registering for GST
- eBay Australia: Registering as a seller
Government rules and platform verification processes can change. Recheck the official pages before acting.