The Australian Business Number (ABN) isn't always mandatory, but it's often beneficial. You'll need one if you're earning more than $75,000 annually or want to claim business expenses. The good news? Registration is free and takes just minutes online through the Australian Business Register.
Without an ABN, clients may withhold 47% tax from payments – a significant hit to your profits. Even if you're just testing the waters, getting an ABN early can save headaches later.
Your side hustle income must be declared on your tax return, regardless of the amount. Keep meticulous records of:
The ATO allows you to claim legitimate business expenses against your income, potentially reducing your overall tax burden. Consider using accounting software like Xero or MYOB to stay organised.
Australia offers numerous platforms to reach customers:
Facebook Marketplace dominates local sales with over 19 million Australian users. It's perfect for physical products and services within your area.
Gumtree remains strong for everything from furniture to professional services, offering both free and paid listing options.
eBay Australia excels for collectibles, electronics, and items with broad appeal. Their seller protection and established trust system attract serious buyers.
Etsy serves creative entrepreneurs selling handmade, vintage, or craft supplies. The platform's global reach can transform local hobbies into international businesses.
Before investing heavily, validate your idea:
Check completed listings on eBay and sold items on Facebook Marketplace to gauge demand and pricing. Search Google Trends for seasonal patterns in your niche.
Join relevant Facebook groups and online communities. Ask questions, observe discussions, and identify gaps in the market. Local Facebook community groups often reveal hyperlocal opportunities.
Visit weekend markets and craft fairs. Talk to vendors in similar niches about their experiences and customer feedback.
Most successful side hustles start small. Focus on one product or service initially, then expand based on customer feedback and demand. Many entrepreneurs report it takes 6-12 months to see consistent profits.
Track your time investment carefully. If you're earning less than minimum wage after expenses, consider whether the experience and potential growth justify the effort.
Some side hustles require permits or licenses. Food businesses need council approval, while services like massage therapy require professional registration. Check with your local council and relevant professional bodies before launching.
Consider public liability insurance, especially for service-based businesses or if customers visit your property.
Starting a side hustle in Australia has never been easier, but success requires planning, persistence, and adaptability. Begin with thorough research, ensure legal compliance, and choose platforms that match your target audience.
Remember, every major Australian business started as someone's side project. With the right approach, your hobby could become your next big opportunity.
Ready to take the leap? Start with that ABN registration and begin documenting your journey – your future successful self will thank you.
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