Side Hustle Tax in Australia: What to Declare (and the 2 November 2026 Deadline)
Selling on Etsy, driving rideshare, freelancing on weekends or reselling online? If you earn money from a side hustle, the ATO will usually expect to see it in your tax return. Here's what Aussies need to know.
The 2026 deadline: Monday 2 November
If you lodge your own tax return, it's normally due 31 October. The ATO says that if 31 October falls on a weekend, the due date is the next business day. In 2026, 31 October is a Saturday, so 2025-26 self-lodged returns are due Monday 2 November 2026. If you use a registered tax agent, you generally need to engage them before 31 October to get their later lodgment program. If you get a tax bill from a self-lodged return, payment is generally due 21 November. Source: ato.gov.au.
Is it a hobby or a business?
The ATO looks at things like whether you intend to make a profit, whether it's repeated and regular, and whether it's run in a business-like way. Hobby income generally isn't taxed, but most regular selling-for-profit activities are a business. If you're unsure, the ATO has a "hobby or business" guide and a tax agent can help.
What to declare
- Sales income from online marketplaces and your own shop
- Payments from platforms (rideshare, delivery, freelancing, short-term rental)
- Cash payments too, not just bank transfers
Many platforms report seller data to the ATO under the sharing economy reporting regime, so assume the ATO can see it.
ABN and GST
If you're carrying on a business you can apply for an ABN. You must register for GST once your GST turnover reaches (or is expected to reach) $75,000 a year, and for rideshare drivers from the first dollar. See our GST threshold guide and GST registration for sole traders.
Deductions
If it's a business, you can generally claim expenses directly related to earning that income: materials, platform fees, postage, a portion of phone and internet, and so on. Keep receipts and work out any private-use portion. You can't claim personal costs.
Records to keep
- Every sale and payout, by date
- Every business expense with a receipt
- A note of how you worked out private-use percentages
The ATO generally requires records to be kept for five years. Our guide to side hustle income records and tracking side hustle expenses go deeper.
Set money aside every sale
Side hustle income usually has no tax withheld. Moving a percentage of each payout into a separate savings account means the tax bill isn't a shock. Missed the deadline? Read what to do if your tax return is late.
Want it done for you?
Side Hustle Income & Tax Tracker: Log sales and expenses and see how much to set aside for tax. Or start with the free Mini Paycheck Budget.
FAQ
When is my 2026 tax return due if I lodge myself?
Monday 2 November 2026, because 31 October 2026 falls on a Saturday and the ATO moves weekend due dates to the next business day.
Do I need to declare side hustle income?
If your activity is a business, yes. Hobby income generally isn't taxable. Check the ATO's hobby or business guidance.
When do I need to register for GST?
When your GST turnover reaches or is expected to reach $75,000 a year. Rideshare drivers must register regardless of turnover.
General information only, not financial or tax advice. Check ato.gov.au or a registered tax agent for your situation.