Tax

I was told that u can only make $300 on hobbies a year b4 tax dep gets interested. Is this true?

That sounds like the 'hobby business' threshold... in which you can sell stuff, but don't need to declare it or pay GST if it is under a certain amount (because it isn't worth the effort calculating and paying). Things like hobby farms, which people sell the occasional fruit or vegies to neighbours or at flea markets...
You shouldn't need to concern yourself with tax on the toys you sell here (if that's what you are worried about) unless you were a registered business and/or you are selling a lot of stuff, like for a living.

For tax purposes you're only allowed to claim any business losses if your turnover exceeds $20,000. This was introduced to cut down on "hobby farms".

But this might be a better read for you.
http://www.ato.gov.au/individuals/co...tent/66884.htm

And really, the best advice you can get is from the ATO themselves. They're free, unlike Accountants!