Side Hustle Calculator
Estimate the after-tax income from a second job or side hustle in Australia, where it is taxed at your highest marginal rate.
Quick Use Samples
Primary Income
Current Situation
Side Hustle Tips
- • Track all income and expenses
- • Set aside money for tax
- • Consider getting an ABN
- • Keep detailed records
- • Plan for quarterly tax payments
Side Hustles
Income Analysis
Side Hustle Breakdown
Time Investment
Tax Considerations
- • Set aside 33% for tax
- • Consider quarterly PAYG instalments
- • Keep detailed expense records
- • May need to register for GST if revenue >$75k
Your side hustles generate a total of $24,000 in annual revenue. After deducting $2,400 in expenses and an estimated $7,020 in additional tax, your net side hustle income is $14,580. This increases your total annual income by 19.4%, with an effective hourly rate of $28 for your time.
Income Proportion
💰 Ready to grow your money?
- 🔹 Raiz: Microinvest your spare change
- 🔹 Swyftx: Trade crypto with confidence
We may receive a commission from our partners if you sign up through these links. This helps us keep our tools free.
What is a Side Hustle Calculator?
A Side Hustle Calculator is a tool for individuals in Australia who have a second job or source of income in addition to their main employment. It helps to estimate the after-tax income from the side hustle by taking into account Australia's progressive tax system, where your second job is taxed at a higher marginal rate and does not benefit from the tax-free threshold.
Behind the Formula
The calculator combines the income from your main job and your side hustle to determine your total annual income. It then applies the ATO's tax brackets to this total income. Since the tax-free threshold is claimed on your main job, every dollar from your side hustle is taxed at your highest marginal tax rate. The calculator isolates the tax paid on the side hustle income to show you how much you'll actually take home.
Expert Insights
- It's crucial to correctly fill out a Tax File Number Declaration form for your second job, making sure you DO NOT claim the tax-free threshold. If you claim it for both jobs, you will almost certainly have a large tax bill at the end of the financial year.
- If your side hustle involves being a sole trader or freelancer (e.g., for Uber or Airtasker), you are responsible for setting aside your own tax and superannuation. The ATO's PAYG Instalment system is designed for this.
- If you expect to earn more than $75,000 in a financial year from your side hustle activities as a sole trader, you must register for GST. This means you'll need to charge GST on your services and can claim GST credits on your business expenses.
Actionable Tips
- Use this calculator to decide if a side hustle is worth your time. The high marginal tax rate might mean your take-home pay is less than you expect.
- If you're a sole trader, open a separate bank account for your side hustle income. Automatically set aside a percentage of every payment you receive (e.g., 30-40%) into this account to cover your future tax and super obligations.
- Keep good records of all your side hustle expenses. As a sole trader, you can claim deductions for expenses directly related to earning your income, which will reduce your taxable income and the amount of tax you have to pay.
Real-World Examples
A Graphic Designer with a Weekend Job
A designer earns $80,000 from their main job. They take a weekend job at a cafe that pays $10,000 a year. Because their marginal tax rate is 32.5%, they will pay $3,250 in tax on that extra income, taking home only $6,750.
A Teacher Who Does Tutoring
A teacher earning $70,000 starts a tutoring business as a sole trader, earning an extra $20,000. The calculator shows their total income is $90,000. They need to set aside tax on the $20,000 at the 32.5% marginal rate and also make their own superannuation contributions.
Forgetting to Withhold the Tax-Free Threshold
Someone claims the tax-free threshold on both their main job and their side job. Their employers withhold less tax than required throughout the year. When they lodge their tax return, the ATO calculates the tax on their total combined income, resulting in a surprise tax debt of several thousand dollars.
Glossary of Terms
Tax-Free Threshold
In Australia, the first $18,200 of your annual income is tax-free. You should only claim this from one employer.
Marginal Tax Rate
The tax rate you pay on the last dollar you earn. Income from a second job is taxed at your highest marginal rate.
Sole Trader
An individual running a business. It is the simplest and cheapest business structure, and the individual is legally responsible for all aspects of the business.