What you need to know about side hustles

A side hustle can be a hobby or a business.

Your side hustle may be a hobby if it is something you do in your personal time for your own enjoyment. However, if your side hustle is making a profit, then may be more than a hobby.

For example, if you sell your knitted scarfs to friends and family as a one-off transaction, then it is not a business. If you want to start selling your knitting to a larger customer base, then you may need to register it as a business.

Your side hustle may be a business if you run or work for another business, such as in sharing economy.

Yes, if your side hustle makes you money, then you need to declare it on your tax return. If you're unsure what to claim on your tax return, you can contact the Australian Taxation Office (ATO), an accountant or registered tax agent.

Well, it depends. There is no one factor that determines if you're in business. If you intend to make a profit or want to start a business, then you should consider registering as a business.

To run a business, you may need to:

• register for Australian Business Number (ABN)
• register for goods and service tax (GST)
• claim tax deductions and business costs.

Balancing a job and running a side hustle can be demanding. Here are some things to consider when running a side hustle:

• You may take on many roles to run your side hustle. If you feel too overwhelmed, consider decreasing your hours or outsourcing tasks.
• You may focus all your energy to your side hustle, which may decrease your performance at your main job. Make sure you work around your schedule and focus on one job at a time.
• You may work extended hours. Make sure you rest, recharge, and enjoy life outside of your job and business.