{"id":872502,"date":"2026-08-29T09:28:15","date_gmt":"2026-08-29T09:28:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/872502\/"},"modified":"2026-08-29T09:28:15","modified_gmt":"2026-08-29T09:28:15","slug":"aussies-chasing-extra-cash-warned-over-popular-side-hustle-biggest-mistake","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/872502\/","title":{"rendered":"Aussies chasing extra cash warned over popular side hustle: ‘Biggest mistake’"},"content":{"rendered":"

For Aussies looking to make extra cash<\/a> around work and family commitments, food delivery can seem like the perfect side hustle \u2014 choose your own hours, jump in the car<\/a> and earn money when it suits you.<\/p>\n

And with a new $31.30-an-hour safety net<\/a>, the numbers can look attractive too. But Yahoo News Australia modelling shows that headline rate can effectively shrink to about $10 an hour once unpaid time, tax and vehicle costs<\/a> are factored in.<\/p>\n

University of Sydney employment expert Dr Caleb Goods agreed the modelling showed gig work could be far less lucrative than the headline rate suggests, while other experts warned overlooked costs could even leave workers out of pocket.<\/p>\n

Goods said declining real wages were a major reason some Australians were increasingly looking for a second source of income.<\/p>\n

“The average working Australian is thousands of dollars worse off than they were four or five years ago,” he told Yahoo News Australia.<\/p>\n

“One way that workers make up that income gap is working a second job, such as doing gig work.”<\/p>\n

Got a side hustle story? Contact matt.dunn@yahooinc.com<\/a><\/p>\n

\"An<\/p>\n

Uber Eats headline hourly wage can look lucrative, but not is all as it seems. (Photo by Klaudia Radecka\/NurPhoto via Getty Images)<\/p>\n

(NurPhoto via Getty Images)The catch with the promised $31.30 hourly rate<\/p>\n

The new $31.30 minimum only applies while a driver is actively completing an order, from acceptance to drop-off, excluding time spent waiting for orders, travelling to busy areas or driving between jobs without an order.<\/p>\n

For our hypothetical, we’ve assumed it takes 20 hours logged on to accumulate 15 hours of paid “engaged time”, generating $469.50 \u2014 an effective rate of $23.48 an hour before tax and vehicle costs.<\/p>\n

How much of your side hustle income actually goes to tax?<\/p>\n

Tax can take a significant chunk out of the headline earnings, particularly for Australians taking on delivery work on top of an existing job.<\/p>\n

CPA Australia Tax Lead Jenny Wong told Yahoo News Australia that Aussies already earning more than $45,000 a year in their main job face a 30 per cent marginal tax rate plus the two per cent Medicare levy on additional income.<\/p>\n

“Roughly one-third of every extra dollar they earn from a delivery side hustle could go towards tax and the Medicare levy,” she said.<\/p>\n

“You can only claim the tax-free threshold in relation to one job. If it’s claimed for more than one job, you are more likely to be required to pay top up tax than get a refund.”<\/p>\n

\"CPA<\/p>\n

CPA Australia Tax Lead Jenny Wong warned side hustle workers to set aside money for tax and ensure all income is declared.<\/p>\n

(CPA Australia)<\/p>\n

Food delivery and rideshare platforms do not automatically withhold tax. Workers receive their earnings upfront and must set aside enough to cover their eventual tax bill.<\/p>\n

“The money lands in your account and can feel like extra spending money, but part of that really belongs to the tax office,” Wong said.<\/p>\n

And for anyone thinking their side hustle income might fly under the ATO’s radar, Wong had a warning.<\/p>\n

“The ATO has sophisticated data-matching systems and receives information directly from many digital platforms, so it’s important that all income is declared correctly. Not declaring all of your income, even if it feels minor, is a risk.”<\/p>\n

Assuming our hypothetical driver earns more than $45,000 in their main job, $150.24 would need to be set aside for tax, leaving $319.26 \u2014 an effective $15.96 an hour before vehicle costs.<\/p>\n

While drivers may be able to claim some vehicle expenses at tax time, tax expert Dr Adrian Raftery, better known as “Mr Taxman”, warned against assuming they can simply claim everything back.<\/p>\n

“The biggest mistake is thinking that they can claim 100% of their car or mobile phone,” he told Yahoo News Australia.<\/p>\n

“You need to apportion between private and business for any deduction. For those using their car, a 12-week logbook needs to be representative of their yearly travel to substantiate claims.”<\/p>\n

RELATED:<\/p>\n

\"Cars<\/p>\n

Delivery drivers using their own cars have to account for vehicle expenses when calculating what they ultimately earn from gig work.<\/p>\n

What are the vehicle costs associated with gig work?<\/p>\n

To put a value on that expense, Yahoo News Australia used the 53-cent-per-kilometre allowance paid to eligible employees under the Fast Food Industry Award when they use their own vehicle for deliveries.<\/p>\n

Gig workers don’t automatically receive the allowance, but it provides a useful benchmark for the cost of using a private vehicle for work.<\/p>\n

For our hypothetical driver using a petrol vehicle, covering 225 kilometres, that equates to $119.25. Deducted from the $319.26 remaining after tax, the driver will be left with about $200 for the week \u2014 or just $10 an hour across the 20 hours logged on.<\/p>\n

That’s less than half Australia’s $26.44 national minimum wage.<\/p>\n

\"DoorDash<\/p>\n

DoorDash says the new minimum standards provide delivery workers with an industry-wide safety net while preserving flexibility.<\/p>\n

(Getty)What the delivery platforms say<\/p>\n

DoorDash defended the new minimum standards, saying they provide delivery workers with an industry-wide safety net while preserving the flexibility and independence of gig work.<\/p>\n

A spokesperson stressed the minimum rate was a baseline and drivers could earn more during busy periods.<\/p>\n

“We know that Dashers have choices when it comes to earning money, including working for competitors, which is why we work hard to make DoorDash an attractive platform for making additional income,” they told Yahoo News Australia.<\/p>\n

DoorDash said it also provides drivers with information showing where demand is highest and more jobs are available to help them maximise their earning opportunities.<\/p>\n

Uber has been contacted for comment.<\/p>\n

You can also follow us on Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, X<\/a> and YouTube<\/a>.<\/p>\n