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

If you have a regular job and️ an ABN, the honest answer is: possibly.

Your employer withholds tax from your salary throughout the year. Your ABN income, however, arrives with no tax withheld at all. At tax time, the ATO combines both income streams to calculate your total taxable income.

That combination is what can create a tax bill if things aren’t handled properly.

Why Side Hustlers Get Caught Out

Many side-hustlers assume their employer’s tax withholding covers everything. It doesn’t.

ABN income is treated separately during the year, but it is added to your wages at tax time. If no tax has been set aside and deductions haven’t been claimed, your total tax position can shift quickly.

This doesn’t mean having an ABN automatically creates a tax bill — it just means the numbers need to be reported correctly.

How Deductions Change the Outcome

The most important factor is deductions.

Your ABN tax is calculated on profit, not income. Profit is your ABN income minus your tax-deductible expenses. Claiming deductions properly can significantly reduce — or even eliminate — a tax bill.

Common ABN deductions include:

• Tools and equipment

• Vehicle or travel expenses

• Phone and internet use

• Home office costs

• Software and subscriptions

• Training related to your work

Missing deductions makes your profit look higher than it should be.

Why a Tax Bill Isn’t Guaranteed

A tax bill only happens when:

• ABN income is added to wages, and

• Insufficient tax has been paid during the year

If deductions are claimed correctly and income is reported properly, many side-hustlers avoid a bill altogether.

Next Steps for Side Hustlers

Running a job and a side business at the same time is common — it just requires accurate reporting and good record-keeping. Staying organised throughout the year makes tax time far less stressful.

If you’re juggling wages and ABN income and want everything handled correctly, you can complete your ABN tax return through GoTax here:
https://www.gotax.com.au/small-business-tax-return