Posted: April 27th, 2016

Discuss the factors that will be taken into consideration by the ATO in determining if Jojo is conducting a business or not and their likely decision

Jojo spends between 15-20 hours per week writing blogs about saving money. She has a part time job to supplement her income, teaching money management at evening classes and works Wednesdays and Thursdays at the local cafe. Jojo does not have a formal business plan but tries very hard to promote her blogs. She is widely known and recognized in her local town because some of her blogs are printed as columns in the local newspaper. She has won four prizes from writing competitions. Jojo has a Master’s degree in creative writing graduating two years ago. In the two years since graduating she has earned advertising revenue from her blog sites amounting to between $8,000 and $10,000 per year with her writing related expenses typically around $6,000 a year. Jojo works from a granny flat on her property and all her blogs are kept on sites which she actively promotes through social media. Jojo is a diligent bookkeeper and keeps record of all her writing related income and expenses. She is a member of two professional writing associations and has been reviewed on a number of other websites to which she is unrelated.

REQUIRED (Q2):
Discuss the factors that will be taken into consideration by the ATO in determining if Jojo is conducting a business or not and their likely decision.