With rising fuel costs, more rate hikes on the horizon, and cost of living still biting, it’s no wonder Aussies may be hunting for extra cash. And the need for more income has likely hit every generation, including retirees.
With Christmas fast approaching, seasonal work could be one option worth considering if you’re looking for more moola. Employers are already recruiting thousands of workers for the summer rush, and more than 3,000 Christmas casual jobs across Australia are currently listed on SEEK.
A Christmas casual role can be a handy way to boost your budget before the new year, but there are plenty of other options out there. If you're looking for a way to top up your cash flow, or turn a passion into payments, we've put together a list of side gigs to help you. Bear in mind that managing pension payments with an income is a balancing act, so do your research before trying any of these yourself.
What is a side hustle?
A side hustle is essentially a secondary form of income. You can classify side hustles as anything you make money from in addition to your main income (salary, pension, etc).
Many people use their side hustles to boost their cash flow or turn a hobby into a job.
What side hustles can I do?
If you’re considering a side gig, your choices will depend on your lifestyle, skills, experience, and interests. Here are a few popular options you could choose from:
- Rideshare and delivery: Companies like Uber and Uber Eats regularly need more drivers. You could choose to drive people from place to place or deliver items to their houses.
- Pet sitting or dog walking: A great option for the animal lovers. You can hang out and look after pets while getting paid! You can sign up to do this via a service like Mad Paws, but you’ll likely be asked for a reference or referral.
- Start a market stall or sell homemade crafts: Love crafting or creating? You could make some extra cash from it. Sign up to have a stand at your local market or use platforms like Etsy and Facebook Marketplace to sell your goodies.
- Monetise expertise from your former job: Anyone from writers to mechanics can build a business out of their home. Utilising previous experience can be the best way to add to your income stream. Beware that you may need certificates, safety checks, or insurances to run a business from home, especially if it involves machinery.
- Become an Airtasker: For the handy men and women out there, there are always opportunities to earn money by completing jobs for other households. Airtasker is a platform for people to request hands-on jobs they may not be able to complete themselves.
- Have a nursery or sell plants: If you have a green thumb, you can put it to use by growing and selling plants, flowers, herbs, and succulents. You could create a stall or sell your plants online.
- Become a census or election officer: If you’re looking for something occasional, you could sign up to be a field officer for government events like the census or elections. These are paid by the hour and usually don’t require any experience.
What do I need to know about side hustles?
The above options may sound appealing, but, there is more than meets the eye to make sure your side gig won’t land you in hot water. If you’re considering earning an income with a side hustle, there are some key questions you’ll need to ask yourself:
- Will my income affect my government pension? If you receive any type of government payment (like the pension) you will need to report any money as income to Centrelink. Depending on how much income you earn from your side hustle, your government payments could be reduced or stopped. You can check how much you can earn before your pension is affected on the Services Australia website.
- Will my income affect my account-based pension? It’s unlikely earning extra income will impact how much you are able to withdraw from your super, but it’s recommended that you speak to a financial adviser to discuss any restrictions.
- Will I need to pay tax? Any money you earn counts towards your taxable income. Aussies can earn up to $18,200 a year before being required to pay tax, so if you receive other forms of income, ensure you meet your tax obligations. A side hustle may even require you to be a sole trader with an ABN. Speak to an accountant or financial adviser to find out what you are required to do.
- Do I have the right insurance? Regular home insurance might not cover you if you’re running a business from home. If you’re keeping stock in your home or if anyone coming to your home for business gets injured, you may not be covered.
- How will my income affect my partner? If your partner receives a form of pension or government payment, they may be affected. If their payment is based on household income, any money you make from your side hustle will be included in your household income. Make sure to update both your and your partner’s payment details.
- Will selling my home become more expensive? If you run your side hustle from a dedicated home office or workshop, you might lose the full Capital Gains Tax (CGT) exemption on your home. This means when you eventually sell your house, you could be required to pay tax on a portion of the profit. It’s worth asking an accountant if your side gig could lead to a surprise tax bill down the track.
Is a side hustle suitable for me?
Above all, if you plan to take on a side hustle, you’ll need to consider the day-to-day realities. Whether you are renting out a spare room or selling goods online, you’ll need to think about your space. For example, if you plan on selling physical products, do you have enough room to safely store your stock without it taking over your living area? You should also consider the impact on your lifestyle and other forms of income.
Want your money to work as hard as you do?
If you’re considering a side hustle, you’re probably not the type to sit idly by and let your bills eat you up. So, why would you let your money?
It’s easy to let your super take a back seat once you’re retired or receiving a pension, but staying on top of it can see you better off in the years to come. If your superfund has been underperforming, you’re not locked in simply because you’re near retirement or in pension phase.
Importantly, the early stages of retirement can be a great time to take stock of fees charged within your super account. After all, you may be less likely to call on things like income protection insurance or total and permanent disability cover.
But remember, switching super funds or cancelling insurance cover could lock you out of certain benefits down the track. It can pay to get professional advice before making major changes.
