As the end of the financial year approaches, the Australian Taxation Office (ATO) has made one thing crystal clear: if you’ve got a side hustle, they’re watching.
From rideshare and food delivery to selling on Marketplace, freelancing, or running a weekend mobile service – what once felt like a bit of extra cash is now firmly on the ATO’s radar. And in 2025, they’re cracking down harder than ever before.
So if you’re working nights and weekends chasing income but still feeling stuck, this blog is for you. Let’s explore why the side hustle model is no longer the safe middle ground it used to be and why the best way to get ahead might be to work for yourself, full-time and on your terms.
The ATO is Cracking Down on Side Hustles
Thanks to new data-matching programs and reporting requirements, the ATO now has more visibility than ever into side hustle income. Since mid-2023, digital platforms like Uber, Airbnb, Etsy, and Airtasker are required to report user earnings directly to the government.
That means:
- There’s no more flying under the radar
- Undeclared income is easier than ever to detect
- Penalties (and interest) for non-compliance are real
ATO Assistant Commissioner Tim Loh recently warned that side hustlers who aren’t reporting all their income could be setting themselves up for audits, fines – or worse.
The Problem with Relying on a Side Hustle
There’s no doubt the rise of the side hustle has been empowering. Flexibility, autonomy, a bit of extra income – it’s been a financial lifeline for many Australians. But there’s a darker side:
- No superannuation or long-term security
- No business protections or insurance structures
- No scalability – you’re always trading time for money
- And now? No room for tax mistakes
In short, a side hustle is a short-term patch. It’s not a long-term plan.
Want to Get Ahead? Work for Yourself - Properly
If you’ve got the drive and are already putting in the hours on nights and weekends, the next logical step isn’t to keep side hustling – it’s to go legit. That means:
- Registering your business properly
- Charging what you’re worth
- Taking control of your time
- Building something that grows with you
The ATO treats registered small businesses very differently than informal income-earners. You’ll have access to more deductions, better cash flow strategies, and a clearer path to long-term wealth building.
Good News: The Government Wants You to Succeed
While the ATO is tightening rules on side hustles, there’s also good news for those who want to take the leap and start their own business. In fact, the federal government has introduced a number of incentives designed to support small business owners in 2025:
✅ Instant Asset Write-Off up to $20,000 for eligible purchases
✅ 20% Bonus Deduction on energy-efficient tools and equipment
✅ Energy Efficiency Grants for upgrades to mobile or home-based businesses
✅ National Small Business Strategy that gives small businesses a stronger voice in policymaking
If you’re ready to stop side hustling and start building, the government’s actually on your side.
So What’s the Next Step?
A Franchise Could Be the Bridge
Starting a business from scratch can feel overwhelming – but it doesn’t have to be. For those who want to work for themselves without the guesswork, a franchise offers the perfect middle ground.
Franchises like Wheel Change U provide the systems, tools and brand recognition of an established business, while giving you the freedom to control your schedule and income. You’ll be trading time for ownership – not just hours for pay.
Make EOFY Your Turning Point
EOFY is the perfect time to reassess. Are you chasing cash on weekends with a side hustle – or are you building something real?
If you’re ready to work for yourself, take control of your future, and leave the ATO stress behind, it might be time to talk.
Ready to ditch the side hustle? Learn more about becoming your own boss with a Wheel Change U franchise.
Download our Information GUIDE
Our complete information guide covers all you need to know about Wheel Change U, including our franchisee costs and inclusions.
The detailed guide will help you understand our business, what it means to be a mobile tyre shop franchisee and if Wheel Change U is the right opportunity for you.