What every Australian side hustler needs to know in 2026. ABN, GST, the A$75,000 threshold, Personal Services Income rules, deductible expenses, BAS lodgement and the simple system that keeps you out of trouble with the ATO.

TL;DR

If you side hustle in Australia, get an ABN before your first invoice, register for GST only once your turnover crosses A$75,000 (or projects to in the next 12 months), and put 25 to 30 percent of every payment aside for income tax. Lodge through your normal individual tax return with a sole trader schedule, plus quarterly BAS if you are GST registered. This is general information, not personal tax advice; verify with a registered Australian tax agent for your situation.

Key takeaways

An ABN is free, takes 15 minutes and stops clients withholding 47 percent of your invoices.
The GST threshold is A$75,000 in turnover, not profit.
Personal Services Income rules apply when most income comes from a single client.
Save 25 to 30 percent of every payment for income tax in a separate account.
Always check the ATO website or a tax agent for current numbers; they change.

If your side hustle in Australia is starting to make money, the tax part is more straightforward than people think. This guide covers the most common situations for an individual Australian side hustler in 2026 in plain English. For anything edge case, talk to a registered tax agent.

Step one: get an ABN

An Australian Business Number identifies you to clients and to the ATO. Without one, businesses paying you must withhold 47 percent of the invoice and remit it to the ATO. With one, you receive the full amount.

Apply free at the Australian Business Register.
Sole trader is the simplest structure for a side hustle.
Apply before your first invoice. It usually arrives within minutes for individuals.

You can run a side hustle without registering a separate business name if you trade under your own legal name.

Step two: GST, only when you cross the threshold

You must register for GST when your turnover (gross income, not profit) hits A$75,000 in any rolling 12 month period, or you project to. Below that, GST registration is optional.

Below A$75,000: do not charge GST, do not lodge a BAS, simpler.
Above A$75,000: add 10 percent GST to invoices, lodge quarterly BAS, claim GST on business expenses.

Voluntary registration can be useful if you have lots of GST inclusive expenses you want to claim back. For most side hustlers under the threshold, it adds admin without much gain.

Step three: how income tax actually works

For a sole trader side hustle:

Gross income. All money received from clients in the financial year (1 July to 30 June).
Allowable deductions. Software, business specific training, percentage of phone and home office, business travel, professional memberships, depreciable equipment.
Net business income. Gross minus deductions, reported on the business and professional items schedule of your individual tax return.
Tax on net income. Added to your other income and taxed at your marginal rate. Medicare levy and surcharge may also apply.

There is no separate self employment tax in Australia. Income tax on net business profit is the main bill, plus Medicare.

Personal Services Income (PSI) rules

If most of your income comes from one client, your work is mostly your personal effort, and you would otherwise look like an employee, the PSI rules may apply. They limit the deductions you can claim and treat the income more like wages.

Test: in any income year, does 50 percent or more of the income from a contract come from your personal labour and skills, with one client? If yes, the PSI rules likely apply unless you pass one of the four PSI tests (results, unrelated clients, employment, or business premises).

The PSI rules are nuanced. If most of your income is from a single client and you have not checked them, talk to a tax agent.

A simple monthly system

You do not need an accountant from day one. You do need three things:

A separate business account. Free business banking is available; even a separate everyday account at your existing bank works.
A simple spreadsheet. Date, client, gross amount, deduction category, notes. Update once a week.
A tax savings account. Move 25 to 30 percent of every payment into a separate high interest savings account the moment it lands.

Almost every late tax horror story is the result of skipping step three.

BAS lodgement (if GST registered)

Once GST registered, you lodge a Business Activity Statement quarterly. Standard quarters and due dates:

Quarter	Period	Due date
Q1	1 July to 30 September	28 October
Q2	1 October to 31 December	28 February
Q3	1 January to 31 March	28 April
Q4	1 April to 30 June	28 July

You can lodge yourself through ATO online services or via a registered BAS agent.

Common deductions you should not miss

Software and SaaS used for the business
Business specific training and books
Home office (cents per hour or actual cost methods)
Phone and internet (business use percentage)
Equipment depreciation
Professional memberships
Subscriptions used for the work

Always keep digital receipts for at least five years.

Common mistakes to avoid

No ABN. Clients withhold 47 percent. This is the most expensive mistake on this list.
Charging GST without being registered. Illegal and triggers ATO attention.
Forgetting state payroll tax considerations if you scale and hire.
Mixing personal and business spend. Reconciling at year end becomes a nightmare.
Counting net (after fees) as gross. Stripe fees are a deduction, not a discount.

When to bring in a tax agent

You can DIY for a side hustle clearing under A$50,000 in net income if you are organised. Bring in a registered tax agent when:

Profit pushes you into the 37 or 45 percent bracket.
You incorporate as a Pty Ltd or use a trust structure.
The PSI rules might apply.
You are about to cross the GST threshold.

A solid Australian tax agent for sole traders typically charges A$700 to A$1,500 a year and is itself a deductible expense.

If you want a personal weekly nudge that includes how much to set aside for tax, Hustle Report calculates it for you and shows it inside every weekly action plan.

Side hustle tax in Australia: a 2026 GST and ABN guide for sole traders