Tax basics for side hustles and online income for international students in Australia is one of those topics that seems complicated, but understanding the basics protects you. I’ve dealt with tax on side hustle income, and I’ve watched friends deal with it. Some handled it well. Others didn’t. The difference was understanding the basics.
Three years later, I’m finishing my Master’s at the University of Melbourne. I’ve reported side hustle income and paid tax, and I’ve learned what you need to know. Some things are straightforward. Others are less obvious. The difference was understanding the basics.
So here’s everything I know about tax basics for side hustles and online income for international students in Australia, based on what actually applies.
Do You Need to Pay Tax?
Let me start with this, because understanding if you need to pay tax helps you see what applies.
Yes, usually: if you earn income from side hustles, you need to report it and pay tax.
The threshold: you need to pay tax if you earn over the tax free threshold (around $18,200 per year, but check current rates).
But here’s what I’ve learned: if you earn income, you usually need to pay tax. Don’t ignore tax obligations. Report income, and pay tax. It protects you.
What Income Needs to Be Reported?
This is important, because understanding what needs to be reported helps you comply.
Report all income: from side hustles, freelancing, tutoring, selling online, or any other income.
Keep records: of all income and expenses. This helps when filing tax returns.
But here’s what I’ve learned: report all income. Don’t try to hide income. Keep records, and report everything. It protects you from penalties.
What Expenses Can You Claim?
This is important, because claiming expenses reduces your tax.
You can claim: expenses directly related to earning income, like equipment, software, internet, or phone costs.
You usually can’t claim: personal expenses, or expenses not related to earning income.
But here’s what I’ve learned: claiming expenses reduces your tax, but only claim legitimate expenses. Don’t claim personal expenses. Keep records, and claim only what’s allowed.
Do You Need an ABN?
This is important, because understanding if you need an ABN helps you comply.
You might need an ABN if: you’re running a business, freelancing regularly, or earning significant income.
You usually don’t need an ABN if: you’re an employee, or earning small amounts occasionally.
But here’s what I’ve learned: whether you need an ABN depends on your situation. Check the ATO website or speak to an accountant if you’re unsure.
I’ve written about TFN vs ABN and which to use if you want more detail.
How to File Tax Returns
This is the practical part, and here’s how to do it.
File online: use the ATO’s online system, or use tax software.
Keep records: of all income and expenses. This makes filing easier.
Deadline: tax returns are usually due by October 31, but check current deadlines.
But here’s what I’ve learned: filing tax returns is straightforward if you keep records. Don’t leave it to the last minute. Keep records throughout the year, and file on time.
Common Mistakes: What to Avoid
This is important, because avoiding mistakes protects you.
Don’t: ignore tax obligations, forget to report income, or claim personal expenses.
Do: keep records, report all income, and claim only legitimate expenses.
But here’s what I’ve learned: common mistakes are avoidable. Keep records, report all income, and claim only legitimate expenses. Don’t ignore tax obligations.
Frequently Asked Questions
Do I need to pay tax on small amounts?
It depends. If you earn over the tax free threshold, you need to pay tax. But even if you’re under the threshold, you should report income.
How do I keep records?
Keep receipts, invoices, bank statements, and records of income and expenses. Use a spreadsheet or app to track everything.
What if I forget to report income?
Contact the ATO. It’s better to report it late than not at all. You might face penalties, but reporting is better than not reporting.
Do I need an accountant?
Not necessarily, but an accountant can help if your situation is complex. For simple situations, you can file yourself.
What if I’m not sure about something?
Check the ATO website, or speak to an accountant. Don’t guess. Get advice if you’re unsure.
Can I claim my computer or phone?
Maybe, if you use them for earning income. But you can usually only claim the portion used for work, not personal use. Check what’s allowed.
Final Thoughts
Tax basics for side hustles and online income for international students in Australia: report all income, keep records, claim legitimate expenses, and file tax returns on time. Don’t ignore tax obligations. Report income, and pay tax. It protects you.
Don’t ignore tax. If you earn income, you usually need to pay tax. Keep records, report all income, and file tax returns on time. It protects you from penalties and problems.
I’ve made plenty of mistakes since landing in Melbourne, but each one taught me something. The biggest lesson? Don’t ignore tax. If you earn income, report it and pay tax. Keep records throughout the year, and file tax returns on time. It protects you, and it’s the right thing to do.
If you’re still learning about tax, keep records of all income and expenses, report all income, and file tax returns on time. Don’t ignore tax obligations. If you’re unsure about something, check the ATO website or speak to an accountant. Tax is important, and understanding the basics protects you.
