I have a side hustle — do I need to declare it?

General advice only · AFSL 222640 · Global Mutual Funds Pty Ltd

The direct answer

Generally yes. Income from a side business — freelancing, selling goods you make, driving, renting out a room — must be declared on your tax return, and you can usually claim related expenses. A genuine hobby is different, but the line depends on intent, regularity and profit motive. Many platforms now report seller and driver income directly to the ATO.

What it depends on

The full answer depends on your specific circumstances. Here’s what matters.

Hobby or business

The ATO looks at whether you intend to make a profit, operate regularly and in a business-like way, and the size of the activity. Selling personal items you no longer need is generally not income.

Platform reporting

Under the sharing economy reporting regime, many online platforms (such as ride-sourcing and short-term accommodation) report transactions to the ATO. Assume the ATO can see platform income.

ABN and GST

If you are carrying on a business you may need an ABN. GST registration is required once turnover reaches $75,000 — or from the first dollar for ride-sourcing drivers.

The last 10%

What a qualified professional can add

The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.

Determining whether your activity is a business for tax purposes
Identifying deductible expenses and apportioning mixed-use items
Estimating tax so you are not surprised at year end

Questions to ask before you engage one

If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.

Is my activity a hobby or a business in the ATO's eyes?

Do I need an ABN or GST registration?

What expenses can I claim, and what records do I need?

Should I set aside money for PAYG instalments?

Your next step

Start a simple record of side-hustle income and expenses today. It makes the hobby-or-business question and your tax return far easier.

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