THE IMPORTANCE OF DECLARING “SIDE-HUSTLE” INCOME
During the lockdowns, lots of people who have lost their jobs have started up “side-hustles” to make money. However, many people don’t understand the tax implications of earning money this way.
Contrary to popular belief that such activities are hobbies and therefore not taxable, income from ride-sharing, food deliveries and on-line sales is considered to be assessable income and must be reported in tax returns.
Technology today provides ever increasing information from a range of providers including financial institutions, on-line market places, ride sourcing applications and short-term rental websites to the ATO, who are then in in a strong position to spot income that has not been declared.
It is also important to think about deductions. Depending upon your business or profession, make sure you are claiming everything that is relevant but, as every job is different, what can be required in one occupation may not qualify in another. Inappropriate claims will be knocked back.
For further information or assistance, don’t hesitate to call our office.