Side Hustle + ABN Tax Guide — How Tax Works When You Have a Job AND an ABN

Welcome to Australia’s most confusing tax category — and the place where most people accidentally donate half their refund to the ATO.
When you’ve got a job and an ABN on the side, you’re dealing with two tax systems running at once:

• your job, where tax is withheld for you

• your ABN income, where nobody withholds anything

This guide explains exactly how it works, why tax bills happen, how to avoid them, and how to claim every tax deduction you’re entitled to. No jargon. No drama. No accountant sighing at you like you forgot your homework.

This is the Side Hustler’s Survival Guide in simple English for you.

If you work a job and earn ABN income on the side, your employer withholds tax from your salary but no tax is withheld from your ABN earnings. At tax time, both incomes combine, which can create a tax bill if you haven’t claimed your ABN deductions. You must track income, keep receipts, and complete a Business Schedule in your tax return. You usually don’t need GST unless earning over $75,000 (except rideshare). GoTax makes side-hustle tax easy through a guided ABN return with simple steps for income, deductions, and assets.

Section 1: How Your Side Hustle Is Taxed

Your salary is taxed automatically.
Your ABN income isn’t.

At tax time, the ATO adds them together:

(Salary – tax withheld)

PLUS

(ABN income – deductions)

= Your total taxable income

This is the shock moment for most side hustlers.
They think:

“My employer withheld tax… surely that covers everything?”

Nope.
Your employer only covers your salary, not your side gig.

This is why bills happen.

See: Side Hustle + ABN: Will I Get a Tax Bill?

Section 2: Why Side Hustlers Get Tax Bills

There are three major reasons:

1. No tax withheld from ABN income

You’ve earned money all year but haven’t paid a cent of tax on it yet.

2. Not claiming deductions

If you don’t claim tax-deductible expenses, the system assumes your ABN income was pure profit.
That’s how people end up owing hundreds or thousands.

3. Combined income pushes you into a higher bracket

If your ABN income tips you over a threshold, the ATO recalculates your tax.

This doesn’t mean you did anything wrong — it just means you didn’t set yourself up right.

See: How Do I Pay Tax With an ABN?

Section 3: Side Hustlers Can Claim a LOT of Deductions

You only pay tax on profit, not income.

So claiming tax-deductible expenses is essential.

Common tax deductions for side hustlers:

• Equipment (tools, cameras, laptops, devices)

• Subscriptions and apps

• Home office

• Phone and internet

• Car and travel

• Training and upskilling

• Supplies and consumables

• Advertising, platforms, and listing fees

• Software for invoicing, quoting, editing, design, etc.

See: What Tax Deductions Can I Claim as a New ABN Holder?
See: Can I Claim Startup Costs for My ABN?

Deductions are your best friend — legally and financially.

Section 4: Do You Need GST as a Side Hustler?

Only if:

• You earn $75,000+

• You drive rideshare (Uber, Ola, Didi, etc.)

Everyone else?
No GST.
No BAS.
No quarterly paperwork.

See: Do I Need GST Under $75,000?

Section 5: How To Keep Records (Without Losing Your Mind)

You’re not running BHP. You don’t need industrial-level bookkeeping.

You just need proof:

• receipts

• invoices

• screenshots

• digital statements

If you bought something online, your email is usually enough.
If you have a bank statement showing the transaction, that works too.

See: What Receipts Do I Need to Keep for My ABN?

See: The easiest bookkeeping/record keeping system on the planet.  eCashbooks can do your invoicing, your Bas and even tell you how your business is travelling.  Designed for simplicity not accountants.

Section 6: What If You Earned Nothing? Or You Only Did a Few Jobs?

Doesn’t matter.

If you had:

• any income

• any expenses

• an active ABN

…you should lodge.

If you had expenses but no income, that creates a tax loss you can carry forward.

This reduces future tax.

See: Do I Need to Lodge a Tax Return if I Have an ABN?

Section 7: How GoTax Makes Side-Hustle Tax Easy (The 3-Step Process)

We built the GoTax ABN return around the exact problems side hustlers face.

Step 1 — Business Basics

Enter your income and basic details.

Step 2 — Business Expenses

We show you every tax-deduction category available — even the ones you didn’t know existed.

Step 3 — Your “Stuff”

Assets, tools, vehicles — handled properly.

And it’s all included in your fixed $140 ABN tax return.

Start here: GoTax ABN Tax Return

Section 8: The Three Most Common Side-Hustle Situations (Explained Simply)

1. Job + ABN + lots of expenses

Likely outcome: Refund or small bill (good scenario)

2. Job + ABN + some expenses

Likely outcome: Balanced outcome, depends on income mix

3. Job + ABN + no expenses claimed

Likely outcome: You’re donating money to the ATO
We fix this one every day.

Section 9: Who This Guide Is For

Side hustlers like:

• tradies doing weekend jobs

• content creators

• delivery riders

• tutors

• cleaners

• photographers

• DJs

• fitness instructors

• marketers

• designers

• eBay/Facebook Marketplace sellers

• repairers

• consultants

Basically: anyone earning ABN income alongside a salary.

Section 10: FAQs

Can I have a job and an ABN?

Yes — very common.

Why do I get a tax bill?

No tax is withheld from ABN income.

How do I avoid a tax bill?

Claim deductions and use a proper ABN tax system.

Do I need GST?

Only over $75k or if you drive rideshare.

Can I claim startup costs?

Yes — they’re deductible.

Do I lodge if I earned very little?

Yes — especially if you had expenses.

Section 11: Gotax's Final Side-Hustle Pep Talk

Your side hustle isn’t meant to be a tax headache.
It’s meant to:

• give you freedom

• earn extra money

• build opportunities

But tax systems weren’t designed for normal humans — they were designed for accountants who like complicated charts.

That’s why GoTax exists.

If you want your side hustle sorted without a lecture, without drama, and without overpaying tax — we’ve got you.

Start your return here:
GoTax ABN Tax Return