With the cost of living going up, more Australians are finding creative ways to make extra income on the side. For some, that side hustle is starting to look less like “extra” and more like a proper business.
If you have steady sales, repeat customers, and you’re thinking, “Could I do this full-time?”, 2026 might be the year you make the jump. The key is doing it with your eyes open, so you don’t trade one kind of stress for another.
This guide will help you work out if you’re ready and what to sort out before you hand in your notice.
Are you running a business or a hobby?
Before you do anything else, get clear on how your side hustle looks from the ATO’s perspective. It’s not just about how much you earn. It’s also about intent and behaviour, like how regularly you sell, whether you’re set up to make a profit, and how you run things day to day.
If you want a plain-English breakdown of what the ATO expects, read our article: When to register your side hustle as a business.
7 signs your side hustle might be ready to go full-time
Going full-time is less about “following your passion” and more about whether the numbers and the demand are there.
Here are the signs we see when someone is genuinely close to being ready:
- You have a consistent demand
You’re getting enquiries or orders most weeks, not just during one busy season or a random viral moment. - You have repeat customers
Returning clients are a strong signal that your offer is solid, and your business isn’t starting from scratch every month. - You can predict income (at least loosely)
You might not know exactly what you’ll earn, but you have enough history to estimate an average month. - You’re turning down work because you’re time-poor
If you’re saying no because you don’t have capacity, the business might be asking for more of you. - The profit is there after costs
Revenue is not the goal. Profit is. If you’re charging properly and still making money after expenses, you’re in a better position than most. - You’ve got a clear offer and pricing
People understand what you do, what it costs, and what they get. If pricing is all over the place, going full-time can get messy fast. - You’re willing to handle the admin (or outsource it)
Full-time business means staying on top of cash flow, tax, invoices, and record keeping. If you hate that side, plan to outsource early.
If you tick 4 or more of these, you’re probably closer than you think. Now it’s time for the reality check.
The reality check: what do you need to replace your wage?
A common mistake is assuming you just need to match your salary. In reality, you need to replace your salary plus cover the costs that an employer used to absorb.
Start with a simple calculation:
- Your personal living costs per month
- Business costs per month (software, materials, tools, subscriptions, insurance, marketing, vehicle costs, etc.)
- Tax set-aside (this depends on your profit and structure)
- Super (many side hustlers forget this when they go out on their own)
- A buffer for quiet months
If your side hustle currently brings in $8,000 a month but costs $4,000 to run, you’re not living on $8,000. You’re living on what’s left, and you still need to account for tax.
A practical approach is to aim for:
- 3 to 6 months of living costs saved, or
- a proven track record of consistent profit for 6 to 12 months
This doesn’t have to be perfect. It just needs to be realistic.
Get the setup right: ABN, GST, and business structure
Once you’re earning a steady income, getting your setup right matters. It’s often the difference between a business that grows confidently and one that constantly feels behind.
ABN
Most side hustles operating as a business will need an ABN. It helps you invoice properly, work with other businesses, and set up your accounting systems cleanly.
GST
GST is where many people get caught out. If your turnover goes over the GST threshold (currently $75,000 per year), you may need to register and lodge BAS.
Even before you hit the threshold, it’s worth understanding the impact of GST on pricing and cash flow. Registering too early or too late can both cause problems, depending on your situation.
Business structure
The “best” structure depends on your income, risk, and future plans. Here’s the simple overview:
- Sole trader: simplest and most common when you’re starting out
- Company: more admin, can suit higher income and growth plans
- Trust: can suit some family or asset protection situations, usually more complex
This is where an experienced business accountant earns their keep. The right structure can save you tax, reduce risk, and make your business easier to run as it grows.
Cash flow: the part that catches people out
Side hustle income can be lumpy. One month might be brilliant, the next might be quiet. If you go full-time, cash flow becomes your lifeline.
A few practical moves that make a huge difference:
- Separate business and personal bank accounts
- Put money aside for tax as you go
- Set clear payment terms and follow up on invoices quickly
- Consider deposits for project-based work
- Track your numbers weekly, not once a quarter
If your cash flow feels confusing, that’s not a character flaw. It usually just means you need better visibility. Good bookkeeping gives you that.
What you can do now, without quitting yet
You don’t have to leap without a plan. Here are smart steps you can start this month:
- Track every dollar for the next 8 to 12 weeks (income and expenses)
- Work out your margins, not just your sales
- Build a simple monthly budget and cash flow forecast
- Clean up your record-keeping system
- Review pricing so it reflects your real costs and time
- Set a “go full-time” target date and reverse-engineer what needs to be true by then
How Schofields Accountants can help you make the jump
Going full-time with your side hustle is exciting, but you shouldn’t have to guess your way through the financial side.
At Schofields Accountants, we help you:
- Choose the right structure for where you’re heading
- Set up bookkeeping systems that actually make sense
- Stay on top of GST and BAS (without panic)
- Plan for tax so you’re not shocked later
- Keep your numbers clear as you scale
If you’re thinking about making 2026 your year, we can help you map out the next steps with confidence.
Ready to find out where you stand?
If you want a clear answer on whether you’re ready to go full-time, we can help you review your numbers, your setup, and your next best move.
Reach out to the team at Schofields Accountants and let’s make sure your side hustle is set up to support you properly in 2026.
