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Is your side hustle meeting its tax obligations?

The Australia Tax Office (ATO) is cracking down on side hustles this tax season

With new and emerging ways to make money, the ATO is reminding taxpayers to consider if they are ‘in business’ and to declare all income when lodging their tax return.

Record numbers of taxpayers are now working multiple jobs or supplementing their income with ‘side hustles’ or ‘gig’ economy activities, and it’s important everyone pays the right amount of tax.

ATO Assistant Commissioner Tim Loh defines running a business as earning money through continuous and repeated activities for the purpose of making a profit.

Businesses have a range of obligations depending on their structure and turnover, including registering for an Australian Business Number (ABN), keeping the right records and lodging the right type of tax return. They may also have to register for goods and services tax (GST).

You may be running a business if:

  • your home has become more like a warehouse and is stocked with goods to sell
  • you’re running bootcamp sessions
  • you’re an online content creator earning money or receiving gifts

The ATO has sophisticated data-matching and analytical tools to identify taxpayers that under-report their income.

For more information on business and tax obligations visit the ATO website

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