Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. As the cost of living continues to climb, millions of Australian households are looking for ways to cut back. But spending less isn’t the only way to boost your bank balance. With remote, or partly remote, working becoming the norm for many, there are plenty of ways to earn a little extra cash from the comfort of your own home. A quick word on tax…
Before you start earning some additional cash, it’s important to understand that any additional income will be taxed accordingly by the Australian Taxation Office (ATO).
If you take on additional work through an agency, second employer or as a freelancer with an ABN, you can nominate to claim the tax-free threshold of $18,200 . This means that the first $18,200 you earn will be tax-free, thereby reducing your bill come tax time. You can nominate the employer from whom you would like to claim the tax-free threshold, which is usually the payer whom you earn the most income from.
However, if you do not plan to earn more than $18,200 a year in total then you can opt to claim the threshold from each and every payer.
Visit the ATO site for more information on the tax implications of second jobs . 1. Rent out your driveway
If your driveway or car park is empty for most of the day, renting it out through websites like Parkhound, Parkable AU, and YourParkingSpace could be an easy way to boost your income. Your space doesn’t have to be available all the time, although the most popular spaces are the ones that allow 24-hour access.
Parkhound claims that owners can make up to $300 per month for renting out their driveway and up to $450 per month for an indoor or lock-up garage.
Earnings are likely to be higher the closer you are to transport links, shopping centres, attractions or hospitals. Parkable Australia, for example, estimates that car park renters on the fringe of the CBD, can earn up to $1232 per month or $14,784 per year per space. 2. Hire out your storage space
If you don’t have a driveway to spare, renting out your home’s unused storage space could be another lucrative option. In Australia, you can use sites such as Spacer or SpaceOut to list your extra storage, which may come in the form of a storage cage or unit, shed, spare bedroom, carport or even a garage (see above). It’s free to list on the Spacer site, which then adds a fee to handle payments and adds it on to the price you set for your space.
Before renting out your storage space, contact your home insurance provider to check your existing cover will still be valid and if you will be covered if a renter causes damage. If you live in a unit or a villa, check to see whether the body corporate allows for this type of arrangement. 3. Explore ‘passive income’ ideas
As the name suggests, passive income refers to income that—after an initial investment of time, money or resources—can generate an ongoing, steady cashflow with relatively minimal effort and monitoring.
Examples of passive income include asset sharing (such as renting your house and car which we cover in points 1, 2, 6 and 7), and asset building (such as creating your own revenue streams which we cover in points 8 and 10).
Another way to generate a passive income is to put your money (if you have any spare) to work – such as depositing in savings accounts or investing on the stock market. You can find out more about this aspect of passive income with our guide .
Just bear in mind that, as with any investment, your returns can go down, as well as up. Also that, income tax will typically be payable on passive income, so speak to your tax agent or financial adviser. 4. Sell what you don’t need
Getting rid of clutter at home can be a great way to reduce stress. It can also be a tidy little earner if you successfully sell any items online. In fact, research from online marketplace Gumtree estimates Australians could make an average of $5800 per household by selling about 19 unwanted items — be it a chair, fridge, clothes or tech equipment.
When you list an item for sale on eBay in Australia, you only […]
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