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Last updated 22 Apr 2024 · 120,743 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

ATO Certified Response
JayATO(Community Support)Community Support
ATO Certified Response26 Nov 2025

Hi @MLesleyD


You need to declare all income from your Airbnb cleaning work on your tax return, regardless of the amount. There's no minimum threshold where income becomes too little to claim - all income must be declared.


Since you're earning money regularly from cleaning services, you're likely operating a business. A business is generally an activity you do with the intention to make a profit, carried out in a repeated and organised way. Even though the amounts vary each month, the fact that you're doing this regularly suggests it's a business activity.

Here's what you should consider doing now:


  • apply for an ABN (Australian Business Number) - you don't technically need one unless you register for GST, but it's free and makes running your business easier
  • start keeping detailed records of all income and expenses related to your cleaning work
  • consider whether you need to register for GST if your total business income reaches $75,000 in a 12-month period.

When you lodge your tax return, you'll need to declare all income from both your hospitality job and your cleaning business. If you have an ABN, select that you were a sole trader when lodging online with myTax. You can also claim deductions for expenses directly related to your cleaning business.


Since you're earning business income that doesn't have tax withheld, you might want to consider PAYG instalments to help you pay tax throughout the year and avoid a large tax bill.


Check out our guide on whether you're in business and our tax tips for managing your side hustle to help you understand your obligations and next steps.

Spiritjim(Initiate)Initiate
30 Apr 2026

Hello would i be able to specialised help from ato to help me add in online side hustle income which i dont know how to add plus i do feel stressed about whether i can get some help with it im just very unsure how to put it in and so you help people with mental health issues

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!

RachelATO(Community Moderator)Community Moderator
8 Sept 2025

Hi @rachel3101,


Earning $2,000 a month from your side hustle, along with your intent to earn a profit does lean more towards business (rather than a hobby).


Generally, you're in business if your activities involve a set of continuous and repeated activities that you do for the purpose of making a profit. We have some info on our website to work our if you're in business. The ABR website also has some criteria to work out if you're running an enterprise and therefore required to have an ABN.

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?

RachelATO(Community Moderator)Community Moderator
11 June 2025

Hi @Danywhy,


Your first step is to work out if you’re receiving the income and gifts as a hobby or business. A hobby would indicate that you don't seek to profit from the content creation.


If you are seeking a profit, the income and gifts should be declared as assessable income. If you're not operating under a business name or ABN, you can declare this income under the ‘other income’ section in your individual tax return.


You should keep records and consider registering for an ABN if your content creation becomes regular or profitable.

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.

Liked by CCs1
RachelATO(Community Moderator)Community Moderator
16 Mar 2025

Hi @cabdalac,


GST for non-residents is required if your sales connected with Australia are $75,000 or more. Your annual GST turnover does include the combined value of goods/services you import to Australia.


If earnings are less than $500 (AUD), then no, you don't need to register for GST.

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.

Liked by CCs1
BrookeATO(Community Support)Community Support
24 Jan 2025

Hi @Arkator


Sounds like you've been doing a few 'cashies' to earn some extra money. Which is very common especially amongst tradies.


It's fantastic that you want to do the right thing! You can pop the income in under Allowances, earnings, tips and directors' fees.


It's up to you if you want to set up a business, you have to consider whether you need an ABN, keep records of your income and associated expenses, and report these in your tax return.

Liked by CCs1

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Tax tips for managing your side hustle | ATO Community