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Last updated 22 Apr 2024 · 120,420 views
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Hustlin’ every day?

With the cost of living going up, more people are finding creative ways to make money on the side. While the added income can be a welcomed boost, it's important to know what you need to do when it comes to tax and what you need to declare.

We’re here to break down some tax tips so you can stay on top of things while enjoying that extra dough.

Okay but first - what even is a side hustle?

A side hustle is work you do outside of your primary job for extra income.

Side hustles come in many forms – some of the ones we’ve seen lately are content creators on platforms like Twitch or OnlyFans, the sharing economy, drop shipping, gig economy work, freelancing, or even animal breeders.

To break it down a bit further, a side hustle could be:

  • secondary income on top of your normal salary or wages job

  • a second business you’ve set up

  • a small activity you receive money from.

To declare, or not declare, that is the question

If your side hustle is a business, big or small, then you need to make sure all your tax, super and Australian business register obligations are met – this includes things like keeping good and accurate records and lodging and paying when required.

As a business you’ll need to declare income you earn from your side hustles. You can claim some deductions too.

If you’re a sole trader with more than one business, you’ll use the same ABN for each. For example, you run a hair dressing business, and are an influencer on the side, you’d use the same ABN for both.

Sole traders declare all income on their individual tax return. If you lodge online with myTax, select ‘you were a sole trader‘.

If you’re not a sole trader different rules apply. And if you’re not a business? We have information on that too.

What about other tax stuff? Do I need to pay GST or apply for an ABN?

Long story short, you don’t need an ABN unless you register for GST. However, getting an ABN is free and can make running your business or enterprise easier, so you may decide to apply for an ABN before it's required. For example:

  • it can make keeping track of transactions easier

  • it helps others identify your business

  • you can use your ABN to buy a domain like ‘. com.au’

  • it stops tax being withheld from payments you receive from other businesses.

Before you apply for an ABN, check if you're entitled to have one. Once you have your ABN, you must keep your ABN details up to date, and cancel your ABN if you close your business.

If you have a GST turnover of $75, 000 or more in a 12-month period from a business you carry on, including your side hustle, you’ll need to register for GST. Remember, if you’ve received products and services instead of money for your activities these may count as income. You’ll need to include their value when working out your GST turnover.

If your side hustle is ride-sourcing you need to register for GST from the day you start, regardless of how much you earn.

Will having a side hustle affect my current job?

Having a side hustle while working another job is totally fine! You’ll just have to remember a couple of things:

  • We work out your assessable income using all income you earn. This includes both your job and side hustle, and any other income you may earn. Your total income lets us work out things like your Medicare Levy or study loan repayments.

  • Your employer withholds tax from your pay as normal through pay as you go (PAYG) withholding. Tax is not withheld from your business income, but you can enter pay as you go (PAYG) instalments.

How do I make sure I’m paying enough tax to prevent a debt?

If you’re earning income outside of employment you’ll need to pay tax yourself. How much tax exactly? Well, that’s worked out by whichever tax bracket your total combined income puts you in.

Let’s look at PAYG instalments a little more. PAYG instalments make it easy to plan ahead by prepaying tax throughout the year. It also helps you keep a healthy cash flow. Instalment amounts are based on your business and investment income, not your salary and wages.

Check out our article for info on how to enter the PAYG instalment system.

What if your salary or wages are increasing? We have tax tables and a tax withheld calculator so you can check your employer is withholding enough tax. If you think they should be withholding more, you can submit a withholding declaration.

Scenario:

Let’s say, you earned $40,000 in the financial year from your regular job. Your employer has withheld $4,942 tax during the financial year.

You’re currently under the repayment threshold for your FEE-HELP study loan. This means you don’t have to make a compulsory repayment at this stage. So your employer doesn’t withhold extra tax to account for your study loan.

However, you set up a side hustle as a sole trader. You earned $35,000 from your business. At the end of the financial year, that’s added to your regular job income.

This means you‘ve earned $75,000, but your employer only withheld enough tax to cover the $40,000 from your regular job. Now you’re also over the repayment threshold for your FEE-HELP study loan. But your employer didn’t withhold extra tax to cover that.

At the end of the financial year, the tax payable is worked out on:

  • your taxable income

  • Medicare levy

  • compulsory study loan repayments.

Let's crunch the numbers:

Regular job income: $40,000

Side hustle income: $35,000

Tax payable based on total taxable income: $14,842

Medicare Levy: $1,500

FEE-HELP compulsory repayment: $3,375

Total tax payable: $19,717

Current tax withheld: $4,942

Shortfall: $14,775

So, because tax wasn’t put aside from your side hustle income, you’re left with a shortfall payable. Prepaying tax using PAYG instalments is a good way to avoid this exact situation.

Don’t panic though, you’re still ahead. After tax you’re taking home over $55,000.

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Liked by BroncosvRabbits, TheSponge and 5 others
MLesleyD(I'm new)I'm new
26 Nov 2025

Question for my specific case.

I have a full time job in hospitality. My side hustle is I help a friend with her AIRBNB cleaning. It is very inconsistent, one month could be $1000 from cleaning another month could be only $100. I don't have an ABN, I send an invoice for bank transfer at the end of the month.

Are they any steps I should be taking now?

What steps should i be taking when i do my tax return?

Furthermore, is there a line where the side hustle earning is so little it doesn't have to be claimed?


Thank you

rachel3101(I'm new)I'm new
5 Sept 2025

Hi there,


I have recently started a side hustle (hobby job) which I sell products to different customers and have been earning a profit.


If I earn around $90,000 (excluding super and tax) from my full time job and the side hustle is expected to bring around $2,000/month, do I need to declare this as part of my tax return?


I also wanted to ask if I would need an ABN or register for tax in this case.


Many thanks!

kay123(I'm new)I'm new
14 July 2025

Hello! I do content creation for fun on the side in my spare time but will sometimes get paid to make videos for brands. I do this for fun (as it’s better than binging tv😉) and the money is just an extra bonus! does this mean I don’t have to declare the money i earned? If i think of it as a hobby can the ATO say “well you earn this much and it’s a business” then will I get in trouble for not declaring it?


I am not sure how to go about it, I have out some money away for tax but wanting to know how I can prove it’s only a “hobby” if the ATO disagrees


Thanks in advance!

Danywhy(Newbie)Newbie
5 June 2025

Do content creators need to declare their income from content creating? If the influencer has their main job but content creation is their side hobby from where they also get gifts and paid collaboration, not always but may be once a week or sometimes once a month, then do they have to declare them in their tax return? Also, if its not money but say skin care products or material gifts then how can they declare this in their tax return. Sometimes payment are received in paypal and that amount is not received under TFN or ABN, then while declaring in which section do these payments need to be included in individual tax return?

cabdalac(Newbie)Newbie
18 Feb 2025

Can you help me with this scenario? I used to live in Australia but left a year ago. I have a TFN and after I left I did my tax declaration assisted by a tax agent to ensure everything was okay, since I was working as an employee before leaving. Now, a former colleague from Australia is asking me to provide a graphic design service for their business, for which they need an invoice to be issued by me once the work is completed. The earnings will be less than AUD 500. I never registered for ABN or GST while in Australia, and my understanding is that I don't need to do so now. However, since I need to issue an invoice, should I just mention GST is not included? Should I still leave money aside to pay taxes in my next tax declaration? I'd appreciate any advice.

Arkator(Newbie)Newbie
14 Jan 2025

So I work a full time job at a trade based company which earns me $69,100 a year before tax, but over last year I've helped several of my tradie mates after work here and there, some have their own side businesses going, and I help out if their short on hands and the extra cash is always appreciated outside of full time job, and on occasion its their own personal stuff, like they are re-doing their kitchen or making something for their kids. When I do work they compensate me for my time with cash in hand, it has given me about $7,250 over the entire year, how would I go about reporting this income if it's just between mates? Is what I'm doing a side hustle or a business? I usually just take these odd jobs if offered.

Tiredchook(Initiate)Initiate
21 Oct 2024

I'm a self funded retiree - this still isn't very clear about at what point does a side hustle become a business? I'm a keen gardener and looking to sell plants, it will be seasonal work, all online and less than 25k a year. As a retiree I don't currently pay tax - will my pension count towards taxable income if I register for an ABN?

communify2006(Dynamo)Dynamo
15 Oct 2024

A second example would be useful if it gives information relevant to people who earn under $10,000, $5000 or even $2000 per year. While these might seem small amounts, not every "side hussle" is an immediate success and some ventures are started in May and June and dont have high incomes in the first fin year. And some ventures bomb out, despite doing everything that help satisfy most of the indicators outlined in various court cases.

SMC62(Newbie)Newbie
21 July 2024

I have earnt just under $6000.00 in my side gig ,cleaning an office at 1 night a week,I have kept $600 for tax ,is this enough. the claim for expenses is this for each job or all included,as I had to purchase lots of things for 2nd job

JezzaB(I'm new)I'm new
8 July 2024

Hello,


I'm looking to move into another career as a coach and have an ABN for this business venture but have not earned any income from it yet. The 23/24 financial year I have spent a few thousand dollars on equipment and membership/insurance to coaching organisations to get ready to coach for payment. Am I able to claim the expenses for getting my coaching business up and running even though it generated no income?


Thanks

nnn7609(Newbie)Newbie
3 July 2024

Hi. I'm a uni student planning on working online in Data Annotation. I am in the process of registering for an ABN as a sole trader. Can you clarify whether I need a GST as well?


What other things am I required to consider, since I'm currently working in a casual job as well?


Thanks.

Nettlepot1(Newbie)Newbie
20 June 2024

I'm on an age pension. My side hustle is writing, and I've self-published a novel a few months ago. I'm registered for an ABN as a sole trader. The printing service adds GST to my invoices when I order hard-copy books to sell. Each book sells for $25 of which $10 is the cost of printing. Sales have generated about $300 after printing costs, so far; well below the GST threshold, and I'll record a loss when I calculate the incurred costs of marketing and promotion etc this tax year.


I can't find clear advice about the BAS: do I need to report sales this way even though I'm not registered for GST? Or if/when I sell more than my incurred overheads/costs? Or only if at some point I sell over $75000 (hahahaha oh :/)

Marilu(Newbie)Newbie
3 Apr 2024

This article is quite helpful but I'm still a little stuck.


For the last while, I've been studying and have been unemployed. During that time I started a small freelance business as a sole trader, however, there's little to no income being generated as I've allowed it to stagnate and am well below the 75k mark needed to pay GST.


Now that I'm about to start a new job with an employer, the TFN Declaration asks me if I would like to claim the Tax-Free Threshhold.


My question is if I am allowed to check the box?


My understanding is that only one source of income can claim the Tax-Free Threshhold but does that apply if your side hustle income is pretty much nil?


Any help would be appreciated!

Jane6743(I'm new)I'm new
12 Feb 2024

if your earnings from something like YouTube + job in the financial year are less than aud 18200 you don't need to pay tax? is that correct?

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Tax tips for managing your side hustle | ATO Community