Is your side hustle becoming a business? (November 2026)

Do you sell products online, do freelance work, tutor or earn money from content creation? What
starts as a hobby or occasional source of extra income can change over time, and so can the tax
consequences.

The ATO recently updated its guidance for people who create content or sell online, but the broader
question applies to plenty of side hustles: are you carrying on a business, earning income outside a
business, or simply pursuing a hobby?

There isn’t one test that gives you the answer. Instead, factors such as whether you’re trying to
make a profit, how regularly you carry on the activity, its size and scale, and whether you operate in
an organised, business-like way all help build the picture.

Importantly, not being in business doesn’t automatically mean the money you receive is tax-free.
Income from a side hustle may still need to be declared even where the activity hasn’t become a
business. Genuine hobbies are treated differently.

It’s also worth remembering that payment isn’t always cash. For example, content creators may
receive products, services or other benefits in return for their work, and these can have tax
implications too.

If your side hustle’s grown or changed, it may be a good time to take another look at it. Talk to us if
you’re unsure how your activities should be treated or what you need to report.