Earning Extra Income? What You Need to Know About Declaring It

Published: 24 September 2025  Gotax Publishing

Side gigs are booming in Australia. Whether you’re tutoring, freelancing, driving rideshare, or doing weekend photography, that extra income needs to be declared. The ATO doesn’t care if it’s “just a few hundred bucks”—if you’re earning, you’re taxable.

This guide breaks down what counts as income, when you need an ABN, how to declare it properly, and how Gotax helps you lodge fast and stay compliant—whether you’re using a Quick Return ($25), Full Tax Return ($65) for wage earners, or Small Business Tax Return ($140) for ABN holders.

What Counts as Extra Income?

If you earn money outside your regular job, it’s taxable. This includes:

• Freelance work (design, writing, coding)
• Rideshare driving (Uber, DiDi)
• Tutoring or coaching
• Selling goods online (Etsy, eBay)
• Weekend photography or DJ gigs
• Cash jobs (lawn mowing, handyman work)

If you’re providing services or selling regularly, the ATO considers it income—not a hobby.

Do You Need an ABN?

You need an ABN if you’re:

• Running a business or providing services independently
• Invoicing clients directly
• Operating as a sole trader

If you’re earning money outside employment and not taxed at the source (like PAYG), you likely need an ABN. Gotax helps you lodge with or without one—just choose the right return.

• Full Tax Return ($65) – for wage earners with PAYG income
• Small Business Tax Return ($140) – for ABN holders, sole traders, and GST-registered individuals

Explore Small Business Tax Returns for more info.

Declaring Income and Deductions

You must declare all income earned—even if it’s cash. But you can also claim deductions:

• Internet, phone, and software used for work
• Equipment and tools
• Travel expenses (if work-related)
• Marketing and advertising costs
• Home office expenses (if applicable)

If you’re running a small business, use eCashBooks.com.au to track your income, expenses, and GST. It’s Australia’s most affordable record keeping software—perfect for sole traders and ABN holders.

Do You Need to Register for GST?

Here’s the rule:

• If you drive rideshare (Uber, DiDi, Ola) → You must register for GST from $0 income
• If you run a business or freelance → You must register once you earn $75,000+ per year

Gotax supports both GST and non-GST lodgers. And eCashBooks.com.au helps you track GST, generate reports, and stay compliant.

ATO Audit Risks and Undeclared Income

The ATO uses data-matching to track income from platforms like Uber, Airtasker, and PayPal. If you don’t declare it, they’ll find it.

Audit triggers include:

• Undeclared ABN income
• Cash jobs with no records
• Claiming excessive deductions
• Inconsistent income reporting

Gotax helps you lodge correctly, avoid penalties, and stay off the ATO’s radar.

Example: Declaring Side Income the Smart Way

Tahlia, a part-time teacher in Adelaide, earns extra income tutoring high school students on weekends. She charges $60/hour and made $4,800 last year.
Problem: She didn’t know if she needed an ABN or how to declare it.
Solution: Tahlia used Gotax’s Small Business Tax Return ($140), registered for an ABN, and claimed her laptop, internet, and travel expenses. She also used eCashBooks.com.au to track her income and deductions.
Outcome: She lodged correctly, reduced her taxable income, and avoided audit risk.

Frequently Asked Questions

Do I need to declare cash jobs?

Yes. All income is taxable—even if paid in cash.

What if I only earned a few hundred dollars?

Still taxable. The ATO doesn’t have a minimum threshold for declaring income.

Do I need an ABN for tutoring or freelancing?

Yes, if you’re providing services independently.

Can I claim expenses for my side gig?

Yes. Gotax helps you claim work-related costs.

What’s the difference between Full and Small Business Tax Return?

Full Tax Return ($65) is for wage earners. Small Business Tax Return ($140) is for ABN holders.

Do I need to register for GST?

Yes—rideshare drivers must register from $0 income. Others register once they earn $75,000+.

Can I lodge online with Gotax?

Yes. Gotax is built for fast online tax returns.

What if I didn’t declare income last year?

You may need to amend your return. Gotax can help.

Can I lodge for previous years?

Yes. Gotax supports prior-year returns.

Is Gotax a registered tax agent?

Yes. We’re registered with the Tax Practitioners Board.

Can I lodge on my phone?

Absolutely. Gotax is mobile-friendly.

What if I have both a job and a side gig?

Gotax handles both PAYG and ABN income.

Can I claim a portion of my phone and internet?

Yes, if used for work. Gotax helps you apportion correctly.

Where can I learn more?

Visit the Gotax Online Library.

How do I track my business income and GST?

Use eCashBooks.com.au—Australia’s most affordable record keeping software.

Call to Action

Earning extra income? Declare it right.
Choose your path:

• Quick Return – $25
• Full Tax Return – $65
• Small Business Tax Return – $140

Fast, simple, and built for Aussies. Gotax makes online tax returns easy—even for side gigs.
Track your business and GST with eCashBooks.com.au.

External Links for Reference

• ATO: Declaring income from side jobs
• Business.gov.au: ABN registration
• ATO: GST registration
• eCashBooks.com.au

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