ATO Cracks Down on Startups & Side Hustles

Whether you've just started a business or you're earning extra income from a side hustle, there are some important ATO updates that could affect you. We want to ensure you are across these changes early so you can understand your obligation and save stress later on.

ATO Support (and scrutiny) for New Small Businesses

The ATO has launched a campaign called "Ready for Business" aimed at helping new small business owners understand and meet their tax, super and registry obligations. While this is a helpful gesture, it is important to understand it is also strategic. Approximately 50% of new businesses don't survive past 3 years, the ATO identifies this to be from a lack of obligations being met. For this reason early-stage compliance is now a focus of the ATO, meaning if you're starting a business you will be on their radar.

At Addition Accounting we are here to help you stay on top of everything, so feel free to each out if you're unsure about any of these changes.

GST is under the Microscope

The Australian Taxation Office estimates a yearly gap of nearly $8 billion GST non-compliance, with small businesses contributing a significantly to this issue.

How does this affect me?

• If your turnover hits $75, 000 or more,

• Don't use your GST funs for everyday cash flow. It is good practice to keep GST seperate if you're an employer.

• The ride-sourcing (like uber) and taxi industries are currently under ATO focus If you are a driver in this space please ensure you are registed for GST to avoid penalties.

If you aren't sure whether you need to register or how to manage your GST, we are here to help you put the right systems in place.

"Side Hustle" General Rule

If your activities are regular and aimed at making a profit, you likely have business obligations. That means you may need to report income, pay tax, and consider super and registration requirements.

You can check whether you meet the ATO's definition of a busines here.

Peace of Mind

The ATO recognises that businesses who work with registered tax professionals are far more likely to stay compliant. This means that by working with Addition Accounting, you’re already putting your business in a stronger position.

Our goal is to help you understand your obligations clearly and confidently, so you can focus on what you do best, growing your business. If you have questions about GST, or need help figuring out if your side hustle is a business, let’s chat. Staying proactive now will save you time, money, and stress in the long run.