New research from Westpac indicates that a significant shift is occurring in the Australian workforce, with over half (55%) of the population either currently engaged in a side hustle or contemplating starting one. This trend reflects a growing reliance on multiple income streams as Australians seek to alleviate financial pressures.
The findings, derived from the Westpac side hustle survey, reveal that 27% of Australians are actively earning money through side hustles or micro-businesses. An additional 28% are considering launching their own ventures within the next 12 months. Anthony Mathews, the National General Manager for SME and Small Business at Westpac, commented on the evolving landscape: “The side hustle economy is now firmly reshaping how people work and earn. 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.”
Financial Relief Drives Engagement
The primary motivation for pursuing side hustles is financial relief, with more than three quarters (77%) of side hustlers citing this as their main reason for starting or intending to start a side venture. This trend is especially pronounced among women (83%) and regional Australians (83%). Mathews noted, “While financial relief is the primary driver, we’re also seeing Australians pursue side hustles for personal fulfilment, flexibility, and to explore their passions.”
Research highlights that engagement in side hustles is particularly robust among younger Australians, especially those under 50. Individuals aged 18 to 34 with a side business report an average of 1.75 different ventures. The most common categories include retail and e-commerce (30%), creative content (20%), and gig economy services, such as rideshare driving (18%). Mathews elaborated, “Whether it’s someone selling homemade ceramics at local markets, providing graphic design services on weekends, or dog walking in their area, there is no end to Australian ingenuity. Side hustles are helping people earn extra income, often while doing what they love.”
Regional and Demographic Insights
According to the survey, Queenslanders are the most likely to earn from side hustles (34%), followed by residents of Victoria (28%) and New South Wales & Australian Capital Territory (23%). The data also indicates that 27% of Australians living in metropolitan areas have a side hustle, compared to 28% in regional Australia.
Earnings from side hustles vary significantly. While two-thirds (67%) report making less than $500 per month, about one in five (18%) generate $1,000 or more. On average, side hustlers earn approximately $736 each month, which totals around $8,800 annually. Most side hustlers (62%) prefer to maintain their ventures as small supplementary income streams, although 30% aspire to expand their businesses either part-time or full-time. “The potential of side hustles shouldn’t be underestimated,” Mathews stated. “At Westpac, we’ve seen numerous examples of successful global businesses that started as side hustles. Great Australian business success stories often begin with one person who sees a problem they can solve and has the determination and support to bring that idea to life.”
Despite the enthusiasm surrounding side hustles, many individuals rely on informal support networks rather than professional advice. The survey showed that friends and family (36%), social media groups (34%), and YouTube tutorials (31%) are the top resources used by side hustlers. Mathews highlighted a gap in formal support, saying, “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.”
From a financial perspective, Mathews emphasized the importance of separating business and personal finances. This approach can provide clearer insights into what the business is generating. As an incentive for new business owners, Westpac has introduced a $100 cashback offer for eligible customers opening a new business transaction account.
The research outlines the top reasons Australians are starting side hustles:
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%
This data paints a vivid picture of a transformative movement within the Australian workforce, showcasing not only the desire for additional income but also a pursuit of passion and entrepreneurial spirit.
