Do I Need an ABN for My Side Hustle? ATO Guidelines Explained

Starting a side hustle, whether it’s freelancing, online selling, or food delivery is a great way to earn extra income. But if you’re making money regularly, you may need to register for an Australian Business Number (ABN).

In this article, we’ll cover:

• What is a side hustle?
• Do you need an ABN for your side hustle?
• ATO guidelines for side income
• How to apply for an ABN for your side hustle
• Benefits of having an ABN for your side hustle

Need to apply for your ABN? Register online now with Register My ABN – it only takes 5 minutes.

1. What is a side hustle?

A side hustle is any ongoing activity you do to earn income outside of your regular job. This includes:

• Selling products online (e.g. Etsy, eBay, Amazon)
• Freelance design, writing, or web development
• Rideshare or delivery work (e.g. Uber, DoorDash)
• Tutoring, consulting, or creative services

If you’re consistently offering goods or services to make a profit, the ATO may view you as running a business - not just earning casual income. See the business vs hobby guide for more details.

2. Do you need an ABN for your side hustle?

You generally need an ABN if:

• You’re advertising your services
• You invoice clients or platforms (like Airtasker or Uber Eats)
• You offer goods or services regularly
• You intend to make a profit

Even small side hustles may require an ABN, especially if the platform or client you're working with asks for one.

3. ATO guidelines for side income

According to the ATO, you’re considered to be carrying on an enterprise (and must register for an ABN) if you:

• Earn income regularly and systematically
• Intend to make a profit (even if you haven’t yet)
• Advertise or present yourself as a business

If you don’t register for an ABN when required, clients may withhold tax from your payments or report you to the ATO. Avoid that by registering for an ABN early.

4. How to apply for an ABN for your side hustle

You can register your ABN in just a few minutes. You’ll need:

• Your Tax File Number (TFN)
• A description of your side hustle activity

You can:

• Apply through the ABR (free, but can take longer)
• Or, use Register My ABN to apply in under 5 minutes for $45 incl. GST

5. Benefits of having an ABN for your side hustle

• Get paid faster (many platforms require an ABN)
• Claim deductions on business-related expenses (e.g. tools, equipment, phone bills)
• Avoid client withholding tax
• Register for GST if you earn over $75,000 per year

Having an ABN shows you’re operating legally and professionally, even if your business is part-time.

Ready to start your side hustle?

If you’re running a side hustle with the intention of making money, it’s safer and smarter to register for an ABN.

It’s quick to set up, helps you stay compliant with the ATO, and makes it easier to manage your finances as your side income grows.

Need to register? Apply through Register My ABN for an ABN in less than 5 mins for $45 incl. GST which is fully tax-deductible.