Urgent warning to Aussies planning to launch a side hustle in 2025
Australians looking to earn some extra money in 2025 could be in for an unwanted tax bill, an expert has warned.
Side hustles are becoming increasingly popular as Australians continue to battle the cost of living.
But H&R Block Australia’s director of tax communications, Mark Chapman, has reminded Aussies that any income they receive, even from a side job, is taxable and must be declared on your tax return.
“You may think your side hustle is just a hobby, but the ATO won’t agree,” Chapman wrote in a column for Yahoo Finance.
‘Certainly if you come from a paid job, you are probably used to your tax being withheld directly from your pay package by your employer.
‘But now that you’re in business on your own account, you need to proactively manage your cash flow to set aside money for future tax bills.
“This may seem obvious, but unfortunately, not putting money aside to pay taxes is one of the most common pitfalls new businesses fall into.”
Mr Chapman’s top tip for keeping taxes stress-free was to hire an accountant.
Australians looking to launch a side hustle in 2025 can expect an unwanted tax bill (shares)
Side hustles are becoming increasingly popular as Australians continue to battle the cost of living
“Most people find it much less stressful to simply give all their information to a tax agent and leave it to the agent to complete their BAS and tax returns, knowing that the work done will be accurate and complete.” , he said. .
“An experienced agent will usually be good at spotting those obscure tax deductions you didn’t know you could claim, so they can often pay for themselves several times over.”
Mr Chapman added that if you start a side job, you can claim deductions on any costs you incur as part of running the business, including internet bills, landline or mobile phone bills and the cost of office furniture.
The expert said Aussies can only claim the business element if the expenditure involves a mix of business and personal use.
In March, 6.7 percent of the working population (974,000 people) had multiple jobs, according to data from the Australian Bureau of Statistics.
Some of them turn to gigs on job marketplace Airtasker to bring in extra money.
Baker and single mother Brittany Davidson told Daily Mail Australia she could make $4,000 a month finding rental properties for wealthy investors, mystery shopping for major corporations and even writing eulogies for funerals.