Intention also matters here when the Tax Office is determining whether an activity is a hobby or a business. If it's a hobby, the income and profit aren't taxable but nor can you claim deductions or losses.
Wow. In the United States, hobby income is fully taxable though you don't have to pay self-employment taxes on it. Hobby losses are deductible but only against hobby income.
Where people can get caught out here is trying to maintain that income from things like multi-level marketing is hobby income - even if the amount earned is small and the hours spent on it are few, it fits all of the criteria for business activity.