New Westpac research reveals more than half (55%) of Australians are either currently earning income from a side hustle or actively considering starting one, as the nation embraces multiple income streams to ease financial pressures.
The Westpac side hustle survey found that 27 per cent of Australians are currently earning money through a side hustle or micro-business, with a further 28 per cent considering launching one in the next 12 months.
"The side hustle economy is now firmly re-shaping how people work and earn," said Anthony Mathews, Westpac National General Manager, SME and Small Business.
"And it isn't just a big city phenomenon. Australians in regional areas are just as innovative and engaged in side hustles as those in our capital cities."
Supplementing income the key driver
The research reveals that earning extra income is the dominant motivation, with more than three quarters (77%) of side hustlers citing this as their main reason for starting or intending to start a side hustle. This was particularly pronounced among women (83%) and regional Australians (83%).
"While financial relief is the primary driver, we're also seeing Australians pursue side hustles for personal fulfilment, flexibility, and to explore their passions," Mathews added.
Young Australians and Queenslanders lead the charge
The research shows side hustle engagement is strongest among Australians under 50. For those in the 18-34 age group with a business on the side, they average 1.75 different side hustles. The most popular categories are retail and e-commerce (30%), creative content (20%) and gig economy services, e.g. rideshare driving (18%).
"Whether it's someone selling homemade ceramics at the local markets, providing graphic design services on weekends, or dog walking in their local area, there is no end to Australian ingenuity," said Mathews.
"Side hustles are helping people earn extra income, often while doing what they love."
Queenslanders are the most likely to be currently earning from a side hustle (34%), followed by Victoria (28%) and NSW & ACT (23%). On average, 27% of Australians living in metro areas currently have a side hustle, compared with 28% of people living in regional Australia.
Earnings potential varies widely
While two-thirds (67%) of side hustlers earn less than $500 per month, about one in five (18%) are generating $1,000 or more. The average side hustler earns approximately $736 per month, totalling $8,800 annually.
Most side hustlers (62%) want to keep their venture as a small supplementary income stream, though 30 per cent aspire to scale their business either part-time or full-time.
"The potential of side hustles shouldn't be underestimated," said Mathews.
"At Westpac we've seen many examples of successful global businesses that started as side hustles. Great Australian business success stories often start with one person who sees a problem they can solve and has the guts and the right support to bring that idea to reality."
Most side hustlers say they are relying on informal support networks rather than professional advice, with friends and family (36%), social media groups (34%) and YouTube tutorials (31%) ranking as the top resources used.
"The research suggests that formalised supports, such as government programs and advice from financial institutions, are under-utilised. There's a clear opportunity to better support Australia's side hustle economy with education and practical resources to help them scale their businesses," Mathews said.
"From a finance perspective, for example, we often hear feedback from our customers that separating business and personal finances gives them clearer insights into what their business is generating - what's coming in and what's going out."
"We also currently have a $100 cashback offer for eligible customers opening a new Westpac business transaction account."
Top reasons for starting a side hustle:
1. Earn extra income to ease financial pressures - 77%
2. Personal fulfilment - 31%
3. Flexibility and/or independence - 29%
4. Explore passion and/or creativity - 29%
5. Build long term wealth - 27%
Biggest barriers to starting or growing a side hustle:
- Lack of time - 33%
- Work-life balance - 28%
- Lack of knowledge / don't know where to start - 28%
- Upfront costs of tools/equipment - 27%
- Lack of confidence - 25%
