Posts on other threads on this subject indicate that other members believe once the postage is built into the sale price it will be classed as income for ATO purposes and subject to taxation ( and expenses claims ) and included in the current ATO $10,000 threshold for ebay to report sellers income to the ATO. I am 98% sure this is right but hav'nt commented specifically before as I am not 100% certain. Lane ends made a very good point about the ATO using the $10,000 reporting limit to frighten and train people to be compliant. Is it possible that in future ( maybe even today ) the ATO will have the computing capacity to cross reference ALL income recieved by people and will be able to do much more detailed and accurate cross referencing  Could they be training us up for the future digital ( cashless ) age when taxation and social security payments are managed with much more surgical precision than the blunt instruments currently used ? So long as the appropriate safety nets are in place this could actually be much fairer, but may stifle the incentive for those on benefits and low incomes to improve their personal financial positions through small scale ebay trading..