Can I freelance or start a side business?

Freelancing and small businesses are common in Australia, and getting started is cheap. What decides whether you can do it is your visa, so check that first.

Check your visa first

Your right to work for yourself depends on your visa, not on whether you can get an ABN. Check your conditions in VEVO.

• Permanent residents and citizens can freelance or run a business freely
• On a Skills in Demand (482) visa, you can only work for your sponsor or an associated business. Freelancing on the side would breach your visa
• Family members on a 482 visa can live, study and work in Australia. Check the partner’s own conditions in VEVO before taking on clients
• Your employment contract may also limit outside work, so read it before you start

Get an ABN

An Australian Business Number (ABN) identifies your business to clients and the ATO. Applying is free through the Australian Business Register or the Business Registration Service. You’re entitled to one if you’re running, or starting, a business, not a hobby. Employees aren’t entitled to an ABN for work they do as employees, even if it’s called contracting. Online, you often get your ABN straight away. Update your details within 28 days if they change.

Sole trader or company?

To trade under any name other than your own, register it with ASIC: A$47 for 1 year or A$108 for 3 years, from 1 July 2026. An accountant or registered tax agent can help you choose the right structure.

GST

• Register for GST within 21 days of your turnover reaching A$75,000 in the current month and previous 11 months, or when you expect it to
• If you drive for Uber, DiDi or a taxi, register before your first trip, whatever you earn
• Once registered, you add 10% GST to your prices, claim GST on business costs, and lodge activity statements
• You can register voluntarily below the threshold

Income tax: set money aside

Clients don’t take tax off what they pay you, so open a separate account and move part of each payment into it. Declare all business income in your tax return and keep records of your income and costs.

Once your latest return shows business and investment income of A$4,000 or more, tax payable of at least A$1,000 and estimated tax of A$500 or more, the ATO enters you into pay as you go (PAYG) instalments. Most people then pay quarterly, so you pay tax through the year rather than one large bill. You can also join voluntarily.

Super for yourself

As a sole trader you don’t have to pay super for yourself, but you can. Most people can claim a tax deduction for personal contributions, after giving their fund a notice of intent to claim. If you employ staff, you must pay their super with each payday. See What is super, and how does it work?

Contractor or employee?

If you work for one client, set hours and do the same job as their staff, you may legally be an employee, whatever your contract calls you. That affects super, tax and your rights. The ATO looks at the whole working relationship under your contract, and since 26 August 2024 the Fair Work Act uses a “whole of relationship” test too. If you’re unsure, check both before you agree terms.

Licences and insurance

• Some work needs a state or territory licence, for example building, electrical and plumbing work, real estate and food businesses. Check with the regulator in your state and your local council
• Public liability insurance covers injury or damage you cause to others. Many clients and venues ask for it
• Professional indemnity insurance covers claims about your advice or work, and some professions must hold it
• Working from home? Tell your home and contents insurer, and check your lease if you rent