More Australians than ever are supplementing their main income with side hustles. Activities which may be captured include whether that’s food delivery, selling handmade goods online, creating content, or renting out a spare room. It’s a great way to boost your earnings. But there’s something important to know heading into this tax time: the ATO can now see exactly what you’re making on those platforms.
The Sharing Economy Reporting Regime: What Changed
Since July 2024, the Sharing Economy Reporting Regime (SERR) has expanded to cover almost every major digital platform. Examples include UberEats, Airtasker, Etsy, Airbnb, YouTube, TikTok, Patreon, and more. Under this regime, these platforms are legally required to report the income they pay to earners directly to the ATO.
What does that mean for you? If your side hustle income is flowing through a digital platform, the ATO already has that information. It will be cross-matched against what you declare on your tax return and if there’s a gap, expect to hear about it.
Are You Running a Hobby or Business?
This is the main fact that will determine how income is treated and may not be straightforward.
The ATO’s general position: if you’re earning money through continuous, repeated activity with the intention of making a profit, you’re likely running a business rather than pursuing a hobby. That matters because businesses carry real obligations. These obligations require you to declare all income, keep proper records, and potentially register an ABN (Australian Business Number), and depending on your turnover, registering for GST.
One-off transactions or activities you genuinely don’t intend to profit from are treated differently. But if your side hustle has become a regular source of income, it’s worth making sure you know exactly where you stand before you lodge.
Not sure whether your situation is a hobby or a business? That’s exactly the kind of question worth sorting out early and it’s something we can help you work through.
Content Creators: It’s Not Just Cash
If you earn money through sponsorships, brand deals, or platform revenue, there’s a nuance you really need to know: it’s not just cash payments that count as income. Free products, gifted stays, sponsored trips will be treated as assessable income and the ATO expects it to be declared.
Placing a dollar value on non-cash benefits isn’t always simple, and it’s one of those areas where getting the right advice upfront can save you from a nasty surprise at tax time. If you’re a content creator and you’re not sure what needs to be included, reach out and we’ll help you work through it.
The Good News: Deductions
If your side hustle qualifies as a business, you’re not just accountable for the income — you can also claim legitimate deductions against it. Depending on your situation, that might include equipment, software subscriptions, your phone, and a portion of your internet costs. In some cases, a home office deduction may also apply.
The key is that expenses need to be genuinely related to earning the income and backed up by records. Keeping good records throughout the year makes this process much easier when tax time rolls around.
What to Do Now
If you have any side hustle income utilising a digital platform, work as a freelancer, or in the business of content creation, make sure it’s declared in your tax return. The ATO’s data-matching capability is now more comprehensive than ever, and unreported income is significantly easier to detect than it ever has been.
If you’re unsure about how your situation should be treated — whether it’s a hobby or a business, what you can legitimately claim, or how to handle non-cash income — feel free to contact us.
This article contains general information only and does not constitute financial or tax advice. Every situation is different — speak with a registered tax professional to understand how these rules apply to you.
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