Side hustle income is added on top of your employment income and taxed at your marginal rate. This means the tax rate on your side income is often higher than you expect — because it sits on top of what you already earn.

You can claim deductions for expenses directly related to earning the side income — things like fuel for Uber, equipment for freelancing, or platform fees. These reduce your taxable side income.

If your side hustle earns over $75,000 per year, you must register for GST. You should also consider making voluntary PAYG instalments quarterly so you do not get a large tax bill at the end of the year.