In the last few years, more and more Aussies have jumped on the side-hustle train. Whether it’s selling earrings on Etsy, freelancing on weekends, or finally turning that “I could totally do this for money” hobby into something real.

But before you go full boss mode, it’s worth setting things up properly so you don’t run into any nasty surprises later.

Here are four things to have on your financial radar before your side hustle gets serious:

1. Get the legal stuff right (or risk copping massive fines)

Most Australian businesses need an Australian Business Number (ABN), think of it as your business’ passport. It tells the government who you are and helps keep your tax affairs tidy.

If your hustle starts pulling in more than $75,000 a year (go you!), you’ll also need to register for Goods and services tax (GST). At that point, calling in an accountant is probably a smart move.

2. Have separate bank accounts for personal and business use.

If you’re just starting out and not earning much yet, it can be tempting to just receive payment through your personal bank account.

However, having separate bank accounts for your side hustle means clearer expense and income tracking, which future you (and your accountant) will be SUPER grateful for at tax time!

3. Set aside money for taxes and superannuation.

When you’re self-employed, you are the boss - which also means you are responsible for your own super and tax.

You’re not legally required to pay yourself the super guarantee, but it’s worth thinking about how future you will stay funded.

And don’t forget tax…  side-hustle income still counts. The amount depends on how your business is structured and your total taxable income, so chatting with an accountant can help you figure out exactly how much to set aside.

4. Know what you can claim (side hustle perks)

Yes, running a business means more admin… but it also means tax deductions. These are legitimate work-related expenses you can claim to reduce your taxable income.

Some common ones include:

• Home office costs
• Travel or vehicle expenses
• Devices and tech (laptop, phone, gadgets)
• Software subscriptions
• Training and upskilling
• Professional insurance
• Bookkeeping and accounting services

Just remember: if something is used partly for work, you can only claim a portion of the expense, not the whole shebang. And keep your receipts in case the ATO comes knocking!

Starting a side hustle is exciting, but it also comes with responsibilities that aren’t always obvious at the beginning. Taking the time to understand your obligations, organise your finances, and get proper advice can make a huge difference as your business grows.