Tax Responsibilities for Side Hustles and Freelancers

Key Tax Responsibilities for Side Hustles and Freelancers

Declaring Income

All income earned from side hustles or freelancing must be reported in your tax return, even if it’s paid in cash.

Registering for an ABN

Freelancers and sole traders may need an Australian Business Number (ABN) to invoice clients.

Paying GST

If your annual income exceeds $75,000, you must register for and remit Goods and Services Tax (GST).

Keeping Records

Maintain invoices, receipts, and bank statements for income and expenses.

Claiming Deductions

You can claim deductions for work-related expenses such as equipment, software, home office costs, and travel to reduce your taxable income.

Freelancers and side hustlers benefit from careful record-keeping and understanding their tax obligations.

For detailed guidance on claiming deductions, refer to our Work-Related Deductions Guide

FAQs

Q: Do I need to register for GST if my income is under $75,000?
A: No, GST registration is only required if your annual income exceeds $75,000. However, you can register voluntarily.

Q: What expenses can I claim as a freelancer?
A: You can claim expenses directly related to earning income, such as software subscriptions, equipment, advertising, and home office costs.