From TikTok creators and Etsy sellers to Uber drivers and Twitch streamers, Australians are finding new ways to turn hobbies and spare time into extra income.
As cost-of-living pressures continue to bite, the side hustle economy is booming – powered by smartphones, affordable tech and online platforms that make it easier than ever to earn money from home.
But while many Australians are investing in gadgets and subscriptions to support their ventures, some are missing legitimate deductions or misunderstanding their tax obligations.
Tax agent Jordan Korb says side hustles are becoming increasingly common among his clients.
“We’ve seen quite a few people doing it. We’ve had people starting up Twitch streaming, while others are driving for Uber on weekends for a bit of extra cash,” he says.
The technology behind these ventures can often be tax deductible if it’s directly linked to earning income. Ring lights, cameras, editing software, second phones, website hosting, podcast microphones and design platforms such as Canva or Adobe may all qualify.
For “gig-economy workers” (people who earn income through short-term, flexible or task-based work rather than traditional ongoing employment), navigation devices, phone mounts, dash cameras and fast chargers can also form part of a legitimate claim.
But Mr Korb says many people fall into the trap of believing everything they buy for a side hustle can be claimed in full.
“People often think they can claim 100 per cent of a purchase, but the ATO only allows a deduction for the work-related portion,” he says.
That distinction matters more than ever as personal and professional technology increasingly overlap.
A laptop used for freelance graphic design during the day and streaming movies at night may only be partly deductible.
Harvey Norman executive general manager of mobile and computer technology Jeff Woodhouse says shoppers remain firmly value-driven, with budgets set first and tax benefits acting more as a bonus than a driver.
“People do think about what tax deductions they might be able to claim… there’s definitely a benefit there,” he says. “It’s something that brings forward a purchase they were probably going to make anyway.”
He explains: “People still work to a budget they had in mind… and then it’s just that there is a tax deduction that gives them that extra, effectively like a discount.”
The Australian Taxation Office has also increased its focus on content creators, gig workers and online businesses as the digital economy expands.
Income earned through social media, streaming, ride-sharing or online sales generally needs to be declared, even if it starts as a hobby.
For ride-share operators, there can be additional obligations.
“A lot of people don’t realise that ride-share drivers need to register for GST from the time they start,” Mr Korb says.
“If they don’t, it can prove to be troublesome at tax time.”
Strong record-keeping remains one of the simplest ways to avoid headaches at tax time. Receipts, invoices and clear records of income and expenses can help substantiate claims if the ATO asks questions later.
“If you’re running a side hustle, having a separate bank account for income and expenses makes things much easier at tax time,” Mr Korb says. “The big thing is keeping records and making sure you’re actually using the equipment to earn income.”
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