Online / Small Retailer

Tax tips for e-commerce and boutique shop owners in Australia.

Allowable Expenses

• Stock Purchases — Cost of goods sold.
• Shipping & Packaging — Australia Post, couriers, and mailing boxes.
• Platform Fees — Shopify, eBay, Etsy, or Amazon fees.
• Marketing — Social media ads and email marketing.

Tax Tips

• Stock-take must be done at the end of the financial year (June 30).
• GST applies to most retail goods sold in Australia.
• Claim your home office if you run your online store from home.
• A 30 June stocktake is essential for calculating cost of goods sold accurately — the ATO requires you to value closing stock (at cost, market value, or replacement value), and choosing the lowest can legally minimise your taxable income.

Frequently Asked Questions

Do I need to do a stock-take?

Yes, the ATO requires a stock-take at June 30 to value your inventory.

Can I claim Shopify fees?

Yes, they are a fully deductible business expense.

Do I charge GST on goods sold through eBay or Etsy to Australian customers?

Yes. If you are registered for GST and sell to Australian customers, GST applies to most goods at 10%. However, eBay and Etsy already collect and remit GST on sales to Australian buyers in many cases — check each platform's GST rules carefully to avoid double-counting.

How do I value my closing stock at June 30?

The ATO allows three methods: cost price, market selling value, or replacement value. You must choose the same method each year unless there is a good reason to change. For most small retailers, cost price is the most common and consistent approach.