top of page

The ATO Already Knows About Your Side Hustle

Aug 12
3 min read

If you're Uber driving, renting out a room on Airbnb, selling items on eBay or picking up freelance gigs on the side - the ATO is already aware of this income. Uber, Airbnb, eBay, Etsy, DoorDash and a growing list of other platforms are legally required to report earnings to the ATO.


This isn't new but most people aren’t aware how far it now reaches.



What Counts as Assessable Income

If you are regularly earning money through one of these activities, it's generally assessable income and needs to be declared:


  • Ride-share and food delivery — Uber, DiDi, Uber Eats and Menulog etc

  • Short-term property rental — Airbnb, Stayz and other accommodation platforms

  • Selling goods regularly — this is different from a one-off garage clean-out; if you're consistently buying, making or sourcing items to sell it starts to smell like a business

  • Content creation and platform income — YouTube, Patreon and Twitch etc

  • Freelance and contract work via platforms — Upwork, Fiverr and Airtasker


What to consider - if it's a regular activity generating income rather than an occasional one-off transaction then the ATO expects you to disclose this income on your tax return.


GST Note for rideshare drivers: Ride-sourcing is treated differently for GST purposes. While most side hustles only need to register for GST once turnover hits $75,000, rideshare driving (Uber, DiDi etc) is classified as taxi travel. This means you need an ABN and must be registered for GST from day 1 even if you won’t hit $75,000 turnover.


How Data Matching Actually Works

Under the Sharing Economy Reporting Regime (SERR) digital platforms are legally required to report seller and transaction data directly to the ATO. Ride-share and short-term accommodation platforms have been reporting since mid-2023 and the regime was extended to cover most other platform categories from mid-2024.


This means:

  • Some of this data may show up on your ATO pre-fill report. It's still your responsibility to check it's complete and correct.

  • The ATO cross-references what platforms report against what you actually declare.

  • A mismatch can trigger a review letter — not necessarily a full audit. But ignoring that letter can escalate the matter.


What You Can Claim

The upside of declaring side hustle income properly is that you can also claim legitimate deductions against it. This can include things like:


  • Platform or marketplace fees

  • Running costs, apportioned for the business-use portion

  • Other costs directly related to earning that income


Exactly what you can claim depends on your specific situation so it's worth getting advice rather than just guessing. What matters most is keeping accurate records from day one: receipts, logbook, invoices and platform statements. Reconstructing records after the fact is far harder than keeping them as you go.


What to Do If You Haven't Declared Past Income

If you've had side hustle income in previous years that you haven't declared - don't panic but don't ignore it. Coming forward voluntarily is treated far more favourably by the ATO than being caught through data matching. Penalties and interest can be reduced for voluntary disclosures.


If this applies to you then talk to your tax agent. Getting the approach right from the start can make a real difference to the outcome. If you'd like a hand working through it then get in touch and we can help you sort it out properly.

 
 
bottom of page