It starts small. A few weekend jobs. A bit of extra cash. Maybe something you genuinely enjoy doing. Then suddenly… it’s regular.
Money is coming in. People are relying on you. And without realising it—you may have crossed a line that matters more than you think.

The Side Hustle

Many people don’t see their side hustle as a business. It feels too informal. Too small. Too “on the side.” But the ATO doesn’t look at what you call it—they look at what you do.

If your activity is consistent, organised, and aimed at making a profit, it can be classified as a business. That often includes situations where you are:

• Regularly selling goods or providing services
• Taking steps to operate professionally (like licences or registrations)
• Keeping records and managing income and expenses

On the flip side, not everything is a business. If what you’re doing is occasional, unstructured, or not driven by profit—it may still be just a hobby.

Think:

• One-off or irregular transactions
• No real intention to generate profit
• Working purely as an employee, not independently

The challenge?

The line between hobby and business isn’t always obvious—but getting it wrong can impact tax, deductions, and reporting obligations.

Here’s the bottom line:

If money is coming in regularly, don’t assume it’s “just a hobby.” This is where smart advice changes everything.  Because when you get this right early, you stay compliant, avoid surprises, and set yourself up to grow properly. So if you’ve started something on the side—even if it feels small—let’s have the conversation. We’ll help you draw the line clearly, structure it right, and make sure you’re building something that works for you—not against you.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.