Side Hustles and Extra Income Australia — Hub

Earning income outside your primary job is one of the most direct ways to accelerate savings, pay down debt faster, or build financial independence. Australia’s gig economy has expanded significantly over the past decade — platforms like Uber, Airtasker, Fiverr, and Airbnb have made flexible extra income accessible to millions of workers.

The Australian Gig Economy

Australia has one of the highest rates of gig economy participation in the OECD. Rideshare, food delivery, on-demand services, and online freelancing platforms collectively employ hundreds of thousands of Australians in flexible arrangements. The key platforms operating in Australia include:

• Rideshare: Uber, Ola, DiDi
• Food delivery: UberEats, DoorDash, Menulog
• Task-based services: Airtasker, Hipages, ServiceSeeking
• Short-term accommodation: Airbnb, Stayz
• Online freelancing: Fiverr, Upwork, Freelancer.com
• Selling: eBay, Facebook Marketplace, Etsy

Earnings vary significantly by platform, hours worked, location, and the worker’s skills. Rideshare and delivery drivers in major cities can earn $25–$35 per hour before costs; freelancers with in-demand skills (web development, copywriting, design, accounting) can earn considerably more.

Key Considerations Before Starting a Side Hustle

ABN registration: If you are operating a business or providing services for income outside employment, you should register for an ABN. This is straightforward and free via the Australian Business Register (abr.gov.au). Most gig platforms require an ABN to pay you.

GST threshold: If your total business income (from all sources, including your side hustle) exceeds $75,000 per year, you must register for GST and charge GST on your services. Most part-time side hustlers will not reach this threshold, but it is worth monitoring.

Record keeping: Keep records of all income received and all deductible expenses. Relevant deductions for side hustles include:

• Vehicle running costs (for rideshare and delivery workers)
• Tools, equipment, and software
• Platform fees (Airtasker commissions, etc.)
• Home office costs (for freelancers working from home)
• Mobile phone costs (proportionate to business use)

Tax on Side Income in Australia

All income from side hustles is assessable income for Australian tax purposes. There is no separate lower tax rate for side income — it is added to your total income and taxed at your marginal rate.

For a person earning $80,000 from their main job who earns an additional $10,000 from a side hustle, the marginal tax rate on the side income is 34.5% (32.5% + 2% Medicare levy). After deducting legitimate business expenses, the net tax position may be more favourable.

The ATO has a specific focus on gig economy income. Many platforms report payments to the ATO directly, and the ATO data-matches this information against tax returns. Unreported gig income is a known compliance risk area.

Side Income vs Passive Income

Active side income requires your time: rideshare, freelancing, Airtasker, tutoring. Your income is directly tied to hours worked.

Passive income — income generated without ongoing active work — is more difficult to establish but potentially more scalable. Genuine passive income sources for Australians include:

• Dividend investing: holding ASX shares or ETFs that pay regular dividends
• Term deposits and high-interest savings accounts: low risk, predictable income
• Rental income: significant capital required, high management involvement
• Digital products: online courses, ebooks, templates (requires upfront creation effort)

Most “passive income” sold as a concept online requires either substantial capital or substantial upfront effort — it is rarely as passive as marketed.

Frequently Asked Questions

Do I need an ABN for a side hustle in Australia? If you are operating a business — providing services on a regular, commercial basis — you should register for an ABN. It is free and takes minutes at abr.gov.au. Most gig platforms require one. If you are an employee doing occasional favours for people, an ABN may not be required — but if you are on a platform earning regular income, register.

How much can I earn from a side hustle tax-free in Australia? There is no separate tax-free threshold for side income. The standard tax-free threshold ($18,200) applies to your total income from all sources. If you already earn above the threshold from your main job, every dollar of side income is taxed at your marginal rate.

Does the ATO know about my Uber or Airbnb income? Yes. The ATO collects data from gig platforms, sharing economy operators, and payment systems. It data-matches this information against tax return lodgements. Undeclared gig income is one of the ATO’s stated compliance focus areas. All income must be declared.

What are the best side hustles in Australia? The most financially rewarding side hustles depend on your skills and available time. Freelancing in professional services (IT, accounting, writing, design) typically pays the most per hour. Rideshare and delivery are accessible with lower skill requirements but involve significant vehicle costs. The best option is one you can sustain alongside your main work without burning out.

For personalised tax advice on your side income, speak with a registered tax agent.