Do I Need an ABN If I Also Have a Job?

Having a regular job does not cancel out the need for an ABN.

If you earn money under an ABN while also working as an employee, the tax system treats these as two separate income streams. They are reported differently during the year, but they come together at tax time.

This is where many side-hustlers get caught out.

Why Having a Job Doesn’t Cancel Your ABN

Your employer withholds tax from your wages and reports your income through payroll systems. Your ABN income, however, is paid to you with no tax withheld at all.

Because of this, the ATO expects:

• Your wages to be reported as employment income

• Your ABN income to be reported separately in a Business Schedule

Both are required if you earned income from each source.

How Your Job and ABN Income Are Taxed Together

At the end of the financial year, your tax return combines:

• Your job income, and

• Your ABN profit (income minus expenses)

The combined amount determines your total taxable income.

This is why people with side hustles sometimes receive tax bills. It’s not a penalty — it’s simply because ABN income doesn’t have tax withheld during the year.

Why Deductions Matter Even More With a Side Hustle

When you have both wages and ABN income, claiming deductions correctly becomes critical.

Common ABN deductions include:

• Tools and equipment

• Phone and internet

• Home office costs

• Vehicle expenses

• Software and subscriptions

Claiming these deductions reduces your ABN profit, which in turn reduces the extra tax created by combining incomes.

Do You Still Need to Lodge If the ABN Income Is Small?

Yes.

There is no minimum income threshold for ABN holders. Even if your ABN income was small, irregular, or only from a few jobs, it still needs to be reported correctly.

Ignoring it is one of the fastest ways to trigger ATO attention.

Next Steps for ABN Holders

If you’re working a regular job and earning side-hustle income under an ABN, the key is reporting both properly and claiming everything you’re entitled to. This avoids unexpected tax bills and keeps you compliant.

You can complete everything correctly through GoTax here:
https://www.gotax.com.au/small-business-tax-return