The gig economy in Australia is booming, and chances are you’ve already come across it, even in a place as cosy as Hobart. Gig workers are freelancers offering services on platforms like Airtasker or running a small business, and more and more people are embracing the flexible work opportunities that this provides.
But what exactly is freelancing? It’s simply when you work for yourself, often on a project basis, and you’re not tied to one employer. Freelancing work could range from someone providing creative services like graphic design to offering hands-on tasks like gardening or home repairs and more.
Many website builders, designers, content and article writers, photographers, and consultants in Hobart are freelancing without even realising it. If you work independently, juggle multiple clients, and manage your own time and income, you’re likely part of the gig economy. Freelancing offers freedom and flexibility, but it also brings new responsibilities when it comes to managing your taxes and finances.
That’s where Hills Accountants in Hobart can help. They’ll ensure you understand your obligations while maximising deductions and keeping your finances running smoothly.
Tax and Accounting Tips for Freelancers
Keep Track of All Your Income
Freelancers often juggle multiple clients, which means payments can come from a variety of sources. Whether you're earning through a job-finding platform or directly from clients, it’s important to keep detailed records of every payment you receive. Even smaller tasks need to be declared as taxable income. Good record-keeping will not only keep you compliant but also make tax time a lot less stressful.
Understand Your Deductions
One of the perks of freelancing is being able to claim deductions for business-related expenses. This could include your home office setup, internet, work equipment, and software subscriptions. As long as the expense directly relates to earning your income, it’s usually deductible. However, knowing exactly what you can and can’t claim can be tricky, which is why a chat with your accountant can be invaluable.