Got a side hustle? Here's what actually matters
Rideshare driving, online selling, content creation, freelancing, market stalls — if you're earning money outside your regular job, a few decisions early on make everything easier later.
This guide walks through the basics. Your side income itself is still reported through your individual tax return.
Common side hustles we see
Rideshare & delivery
Uber, Ola, DiDi, food delivery — this one has a specific GST rule worth knowing (see below).
Online selling
Etsy, eBay, Facebook Marketplace, dropshipping and similar online stores.
Content creation
Social media, streaming, subscription platforms and affiliate income.
Freelancing & consulting
Contract or freelance work alongside your regular employment.
Trades & services on the side
Weekend or after-hours work in your trade, or odd jobs through apps like Airtasker.
Market stalls & craft sales
Selling handmade goods, produce or crafts at markets or online.
Is it a hobby, or a business?
This isn't always obvious, and the ATO doesn't use a single bright-line rule — it looks at the whole picture.
Generally not taxable
A genuine hobby — done for enjoyment, without a real intention to profit, on a small and irregular scale — generally doesn't need to be reported as income, and you can't claim expenses against it either.
Reportable income
If there's an intention to make a profit, the activity is repeated and regular, it's run in a business-like way (record-keeping, marketing, systems), or it operates at a reasonable scale, it's likely a business — and the income needs to be reported.
If you're not sure which side of the line you're on, tell us how the activity actually runs day to day — that's what determines the answer, not the size of the amounts involved.
Do you need an ABN? Do you need to register for GST?
If it's a business (not a hobby), you'll generally need an Australian Business Number (ABN) to operate and invoice properly.
GST registration is a separate question, and the rule is specific: you must register once your GST turnover reaches $75,000 in a rolling 12-month period — or once you reasonably expect it will. You then have 21 days to register.
Rideshare and taxi driving is a specific exception — if you drive for Uber, Ola, DiDi or provide taxi travel, you must register for GST regardless of how much you earn.
Record-keeping and what you can claim
Keep it simple from the start: a separate bank account for the side hustle makes life much easier at tax time, even as a sole trader with no legal requirement to do so.
Track income as it comes in, and keep receipts or records for anything you spend on the activity — the same "keep it if it helped earn the income" principle that applies to any other work-related deduction.
When does it stop being "micro"?
As turnover grows, so does the complexity — GST, potentially employing people, and thinking about whether your current structure (usually sole trader, to start) still makes sense.
There's no fixed line, but once the side hustle starts generating real, ongoing income, it's worth a conversation about structure, registrations and whether it's time to move onto our full Business Tax & Accounting service.
Micro business questions
Do I need to tell my employer about my side hustle?
That depends on your employment contract, not tax law — but for tax purposes, your side income is reported on your own individual return regardless of your main job.
I only made a small amount — do I still need to report it?
If it's genuinely a hobby, generally no. If it's a business (even a small one), the income is reportable regardless of the amount — the hobby-vs-business test is about the nature of the activity, not the dollar figure.
Can I claim a loss from my side hustle against my regular wage?
Sometimes, but there are specific rules (the non-commercial losses provisions) that can limit this depending on your income and the nature of the activity. This is worth discussing with us directly rather than assuming either way.
What if I am not sure whether I need an ABN?
Tell us what the activity actually involves — how often, how it is run, and what you are hoping to get out of it — and we can help work out whether an ABN is needed.
Do I need separate accounting software for a side hustle?
Not necessarily at a small scale — a simple spreadsheet and a dedicated bank account is often enough to start. As it grows, proper accounting software becomes more worthwhile.
Keep exploring
Important information: Information on this page is general in nature and does not take into account your personal circumstances. Whether an activity is a hobby or a business, and what registrations or deductions apply, depends on the specific facts of your situation. Obtain advice relevant to your circumstances before relying on general information.
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