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Side Hustle Tax Guide — Casual Income, Declarations, and Deductions in NZ

the side hustle tax rules in New Zealand. The guide covers the casual and the hobby income declarations, the expense deductions against the side income, the $200 tax-free threshold for the casual employment, and the GST registration requirements.

Casual Income and Declarations

The side hustle income (the occasional freelance work, the hobby sales, the casual tutoring) is taxable income in New Zealand if the activity is carried out for the profit. The casual employment income under $200 per pay period may use the CAS tax code (the casual agricultural workers) or the ordinary casual code. The income from the hobby activities (the occasional craft sales, the eBay sales) is taxable if the activity is the regular and the organised business. The $200 casual threshold applies only to the specific agricultural and the horticultural work. The side hustlers must declare the income in the IR3 tax return and maintain the records of the income and the expenses. See our Self-Employment Guide → for the full rules.

Expenses and GST

The side hustle expenses are deductible to the extent they are incurred in earning the income. The common deductions include: the materials and the supplies, the advertising, the website costs, the transaction fees (the PayPal, the Stripe), and the home office portion. The $60,000 GST threshold typically does not apply to the small side hustles, but the GST registration may be voluntary. The provisional tax will not apply until the tax to pay exceeds $5,000. The hobby losses may not be deductible if the activity is not carried out for the profit. See our Business Expenses Guide → for the deduction rules.