Navigating Tax Changes for Gig Workers in 2025: What Side‑Hustlers Need to Know

1. Understand the Sharing‑Economy Reporting Regime (SERR)

The expanded sharing‑economy reporting regime aligns gig work with traditional employment by requiring digital platforms to report users’ income to the tax office. Previously, gig workers self‑reported their earnings; now, if your tax return doesn’t match the income reported by platforms, you could receive an amended return, a surprise tax bill or penalties. The regime applies broadly – from food delivery and rideshare services to digital content creation and renting out personal items. Even small earnings like renting out your parking spot or designer handbag must be declared.

Tip: Treat every dollar you earn from the sharing economy as taxable income and keep a record of it, no matter how small.

2. Declare all income – including perks, gifts and “contra” deals

Income over the $18,200 tax‑free threshold must be declared, including non‑cash benefits such as free clothes, holidays or cars received in exchange for promotion or services. Influencers and content creators are especially at risk because they often receive a mix of cash and gifts. Under the SERR, these benefits are visible to the ATO when reported by the platform, so it’s important to record the market value of all perks and gifts.

Tip: If you receive products or services instead of cash, note the fair market value and include it in your tax return. Failing to do so could lead to under‑reporting.

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3. Keep accurate records and know when you need an ABN or GST registration

To avoid unexpected bills or penalties, you must declare all income, keep receipts and understand whether you need an Australian Business Number (ABN) or Goods and Services Tax (GST) registration. Register for an ABN if you are carrying on a business as a sole trader. You must register for GST if your total turnover from all enterprises exceeds $75,000 per year. Accurate records make it easier to lodge tax returns, substantiate deductions and comply with GST and income tax obligations.

Tip: Use digital tools to track income and expenses from different platforms. Separate business and personal transactions, and store receipts electronically so they’re easy to retrieve at tax time.

4. Claim your deductions legitimately

Gig workers can deduct expenses directly related to earning income as long as the costs are not reimbursed and you have evidence. Common deductible expenses include:

• Home‑office costs: internet, phone, electricity, a portion of rent or mortgage interest for dedicated workspace.
• Business‑related motor‑vehicle expenses: kilometres travelled between jobs, fuel, parking and tolls.
• Tools of the trade: cameras, microphones, editing software, laptops, lighting or uniforms.
• Travel expenses: fares or mileage when travelling between gig jobs.

To maximise deductions, keep receipts and use a logbook or mileage tracking app to record business kilometres. Only claim the business portion of each expense.

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5. Plan for tax and superannuation contributions

Unlike employees, gig workers don’t have tax withheld automatically or receive employer‑funded superannuation. It’s your responsibility to set aside money for income tax and make voluntary super contributions. Failing to plan can lead to a large tax bill or inadequate retirement savings. A good rule of thumb is to put aside 20–30 percent of each payment into a separate account for tax and super.

How Thriday helps: Thriday automatically categorises your gig income and expenses, calculates estimated tax and GST liabilities and allows you to set up sub‑accounts for tax and super. Receipt‑scanning and mileage‑tracking features ensure you don’t miss deductible expenses. When it’s time to lodge your Business Activity Statement (BAS) or tax return, your records are complete.

Final thoughts

The gig economy offers freedom and flexibility but comes with tax responsibilities. With the ATO receiving direct reports of platform earnings, it’s more important than ever to declare all income, keep detailed records, understand your ABN and GST obligations, claim legitimate deductions and plan for tax and superannuation. Thriday’s integrated banking, accounting and tax tools automate record keeping and forecasting, helping you stay compliant and keep your side hustle profitable.