Calculator
Weekly Net Side Income
$170
After $80 weekly tax
Your side hustle profit of $13,000 is taxed at an effective rate of 32.0%. After tax and expenses, your side hustle adds $8,840 to your annual pocket.
The 'side hustle' has become a defining feature of the Australian economic landscape, with hundreds of thousands of people supplementing their primary salaries with secondary income streams. Whether it's driving for a ride-share app, freelancing as a designer, or selling handmade goods online, the financial appeal is clear. However, many Australians are caught off guard by the 'tax trap' that comes with secondary earnings. In Australia, your tax is calculated on your *total* combined income from all sources. This means that if your primary job already puts you in the 30% or 37% tax bracket, every single dollar you earn from your side hustle is taxed at that same high rate from the very first cent. This calculator is designed to help you see the 'Net' reality of your extra work. By factoring in your main salary, your side income, and your deductible expenses, you can understand exactly how much of that hard-earned extra money will actually end up in your pocket after the ATO takes its share. Proper planning ensures that your side hustle remains a source of financial growth rather than a source of tax-time stress.
The Side Hustle Calculator works by first establishing your 'Baseline' tax position using your primary salary. It then calculates a 'New' tax position by adding your side hustle profit (Side Income minus Expenses) to that primary salary. The difference between the two tax amounts is the 'Side Hustle Tax'. This approach accurately reflects the Australian progressive tax system where secondary income is stacked on top of primary income. We also factor in the 2% Medicare Levy on the total amount. Crucially, the formula accounts for the fact that you typically don't claim the tax-free threshold on your side hustle, as it's already being used for your main job. If your combined income exceeds the HECS-HELP threshold (approx. $54k), we also calculate the additional student loan repayments triggered by the extra income. For businesses operating as a sole trader, we assume you are paying tax at individual marginal rates, which is the standard for most Australian side hustlers. This comprehensive calculation provides a 'Real Hourly Rate' for your side hustle, allowing you to decide if the extra effort is truly worth the net return.
If you are operating your side hustle with an ABN (sole trader), a good rule of thumb is to set aside 30-35% of every dollar you earn in a separate high-interest savings account. This covers your eventual tax bill and the Medicare Levy. If you earn over $75,000 from the side hustle alone, you must also register for and collect GST, which is an additional 10% on top of your prices.
Secondary income is often the thing that pushes Australians over the next HECS repayment threshold. Because HECS is calculated on your *entire* income, earning an extra $5,000 from a side hustle could technically result in you owing an extra $3,000 in HECS repayments if it moves you up a bracket. Always check your combined total.
The beauty of a side hustle is that many associated costs become tax-deductible. If you're a freelance writer, a portion of your home internet, computer equipment, and even relevant books can be deducted against your side income, lowering your overall tax bill. Keep meticulous records and use an app to track every cent of expense.
Even for a small side hustle, having an Australian Business Number (ABN) makes you look more professional to clients and allows you to claim business-related deductions more easily. It's free and quick to apply for through the Australian Business Register.
Open a dedicated bank account for your side hustle. Having all your 'extra' income and expenses in one place makes it 10x easier to use this calculator accurately and simplifies your tax return significantly at the end of the year.
If your side hustle is successful, consider making voluntary 'personal' super contributions. These are usually tax-deductible and can help offset the tax you owe on your side hustle income while building your long-term wealth.
Liam earns $75,000 in his office job and makes $300 a week delivering food. He thought he was making $15,600 extra a year. After using the calculator, he realized that after tax and petrol (expenses), his actual 'take-home' from the side hustle was only about $185 a week. He decided to switch to a higher-paying freelance gig instead.
Maya's handmade jewelry hobby turned into a $12,000-a-year business. Because her main salary was already $110,000, she was shocked to see she owed $4,000 in tax at the end of the year. Now, she uses the '30% Rule' and puts her tax money into a Term Deposit until July.
Tom earns $150k and started a side consulting business. He had $8,000 in equipment expenses (laptop, desk, software) in his first year. The calculator showed him that these expenses actually lowered his total tax bill, meaning his side hustle 'cost' him nothing in tax for the first six months.
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