Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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In 2024, “side hustles” aren’t just pocket-money projects anymore. For a lot of Australian founders, a side hustle is the first version of a real business - a product line you test after hours, a service you deliver on weekends, or an online store you run alongside your main work.
But here’s the catch: once you’re taking payments, advertising, collecting customer details, or collaborating with suppliers, you’ve already stepped into legal territory. If you’re serious about building a side hustle into something sustainable (and protecting what you’re building), it’s worth getting your legal foundations right early.
This practical checklist is designed for solopreneurs and small businesses exploring side hustles in Australia in 2024. We’ll walk through the key legal steps in plain English - so you can focus on growing, while staying compliant and reducing avoidable risk.
What Counts As A “Side Hustle” In 2024 (From A Legal Perspective)?
From a legal perspective, a “side hustle” is simply a business activity you run alongside other commitments. The label doesn’t change your obligations.
In other words, if you’re doing things like:
- selling products online (even casually)
- providing paid services (coaching, design, consulting, trades, tutoring, etc.)
- running subscription access, memberships or digital downloads
- hosting events, workshops or paid sessions
- building an app or platform and onboarding users
…you may need to think about business registration, contracts, consumer law, privacy, and (sometimes) industry licences.
It’s also worth remembering that side hustle businesses often grow faster than expected. The more you scale, the more exposed you can become to issues like customer disputes, refund demands, IP copying, unpaid invoices, or misunderstandings with collaborators.
Step 1: Set Up Your Business Structure And Registrations
Before you worry about fancy branding or marketing, get the “who are you legally?” question sorted.
Choose The Right Business Structure
Most side hustles in 2024 start as a sole trader setup because it’s simple. But as your revenue increases (or your risk increases), you might consider a company structure for better separation between you and the business.
Common options include:
- Sole trader: you and the business are the same legal entity. Simple, but you’re generally personally responsible for business debts and liabilities.
- Partnership: two or more people running a business together (this can be risky without clear documentation).
- Company: a separate legal entity. Often chosen for growth, investment, or liability management.
If you’re building a side hustle with another person (even a friend or family member), it’s usually safer to clarify roles, ownership, and decision-making early through the right agreement for your setup (for example, a partnership agreement for a partnership, or a Shareholders Agreement if you’re running it through a company).
ABN, Business Name, And Other Basics
In practice, most side hustles will need an ABN to invoice, open business accounts, and be taken seriously by suppliers and customers - but you should only apply if you’re genuinely carrying on a business (ABN eligibility rules apply).
If you’re trading under a name that isn’t your own personal name, you’ll usually also need to register a business name. This is separate to trade mark protection (more on that below).
Depending on what you’re selling and how much you earn, you may also need to consider tax basics early, like record-keeping, income tax obligations, and whether you need to register for GST (this is commonly required once your GST turnover meets the threshold, or earlier in some cases such as ride-sourcing). If you’re unsure, it’s worth checking with an accountant or the ATO guidance.
As a practical step, it can also help to separate business admin early:
- use a dedicated business email address
- keep clean records (even if you’re tiny right now)
- have a clear “money in, money out” process
These aren’t just operational tips - they’re often the difference between a minor dispute and a major headache later.
Step 2: Make Sure Your Offers And Advertising Comply With Australian Consumer Law
A lot of side hustles grow because of good marketing: social posts, short videos, online ads, marketplaces, and word-of-mouth. That’s great - but it also means you need to watch your legal claims.
If you sell to customers in Australia, you’ll generally need to comply with the Australian Consumer Law (ACL). This applies whether you’re a solo founder, an online store, or a growing small business.
Common ACL Risk Areas For Side Hustles
- Refund and return expectations: you need to understand when customers are entitled to remedies (refunds, repairs, replacements).
- Misleading or deceptive conduct: marketing claims must be accurate, and your “before/after” or performance claims must be defensible.
- Pricing and “was/now” discounts: display prices clearly and avoid inflated “original” prices that aren’t genuine.
- Non-refundable deposits: these can be legally tricky depending on how they’re described and applied.
If you’re selling goods (even handmade, imported, or resold products), it helps to understand how warranties and guarantees work in practice - including the common misconception that everything has a fixed warranty period. The ACL isn’t always that simple, which is why many businesses look closely at what a warranty really means under Australian rules.
To keep your marketing compliant in a practical way, ask yourself:
- Can I back up every claim I’m making?
- Is my pricing clear (including delivery, fees, subscriptions, or add-ons)?
- Have I explained what customers are actually buying?
- Do my policies match what I’ll do in real life when something goes wrong?
Step 3: Put The Right Contracts In Place (Even If You’re “Just Starting”)
Contracts are one of the fastest ways to reduce risk in a side hustle - because most disputes come down to mismatched expectations.
The goal isn’t to sound “corporate”. The goal is to make sure everyone understands what’s included, what’s excluded, how payment works, and what happens if things don’t go to plan.
Customer Terms: Products And Services
If you sell products or services, you’ll usually benefit from having clear customer terms. Depending on your business model, this could be:
- website or online store terms (for eCommerce and digital products)
- a service agreement (for consulting, freelancing, trades, creative services, coaching)
- a booking and cancellation policy (for appointments, events, sessions, workshops)
If you’re charging deposits, taking pre-orders, or booking time in advance, be very clear about cancellation conditions. Cancellation fees can be enforceable in some situations, but they need to be drafted carefully and presented transparently to avoid consumer law problems. This is why many businesses review their approach to cancellation fees early.
Supplier, Contractor, And Collaboration Agreements
Many side hustles in 2024 depend on other people - manufacturers, developers, designers, marketers, couriers, virtual assistants, or content creators.
If someone else is helping you deliver your product or service, consider:
- who owns the work product (for example, designs, code, content, brand assets)
- deadlines and delivery standards
- payment terms and late fees
- confidentiality (especially if you’re sharing pricing, customer lists, or product plans)
When you’re working with freelancers or contractors, it also helps to have a proper contractor agreement rather than relying on email threads or DMs. Those informal arrangements can lead to misunderstandings about scope, timelines, and who owns what.
If You’re Bringing On A Co-Founder Or Investor
Even if your side hustle is “small”, the moment you add another owner, things can get complicated quickly. It’s not just about how much each person put in - it’s about decision-making, future contributions, exits, and what happens if someone wants out.
If you’re incorporating a company, in addition to a Shareholders Agreement, you may also need a Company Constitution to set core governance rules (especially if you’re not relying solely on replaceable rules).
Step 4: Protect Your Brand, Content, And Ideas (Without Overcomplicating It)
Side hustles often start with a personal brand, a unique name, or a creative angle - and that’s exactly what competitors can copy if you don’t protect it.
Business Name Registration vs Trade Marks
Registering a business name generally stops others from registering the exact same name on the business names register, but it does not automatically give you strong exclusive rights to use that name as a brand.
If your brand name matters (and for most businesses, it does), you should consider trade mark protection. This can be especially important if:
- you’re investing in packaging or signage
- you’re running ads and building recognition
- you’re growing beyond your local area
- your side hustle could become your main business
IP Ownership In Creative And Digital Side Hustles
If your side hustle involves design, photography, video, software, courses, or content creation, you should pay close attention to intellectual property (IP) ownership.
For example:
- If a contractor designs your logo, do you actually own it, or do you just have permission to use it?
- If someone builds your website or app, can you access the source files and reuse them later?
- If you collaborate with another creator, who can repurpose the work?
These issues can usually be managed upfront with clear agreement terms. It’s much harder (and more expensive) to fix after a relationship breaks down.
Step 5: Handle Privacy, Websites, And Online Sales The Right Way
Most side hustles in 2024 collect some kind of personal information - even if it’s just names, emails, delivery addresses, or payment details.
As soon as you collect personal information, you should think about privacy compliance and clear online terms.
Privacy Policies And Collection Notices
Some Australian businesses are legally required to have a Privacy Policy under the Privacy Act (for example, if they meet certain thresholds or handle particular types of information). Even where it’s not strictly required, having a privacy policy can still be a practical risk-management step and a trust signal to customers - particularly if you operate online, collect customer data, or run email marketing.
A good Privacy Policy typically explains:
- what information you collect and why
- how you store and use it
- who you share it with (for example, delivery partners, payment processors, marketing platforms)
- how customers can access or correct their information
Website Terms, Subscriptions, And Payment Features
If your side hustle runs through a website (or app), you should consider website terms that set expectations around platform use, acceptable behaviour, disclaimers, and limitation of liability.
If you’re offering subscriptions or ongoing billing, make sure your payment terms are clear and consistent with consumer law. For example, be transparent about:
- billing frequency and renewal
- how cancellations work
- what happens if payment fails
- what customers receive (and when)
If you’re setting invoice due dates and late fee terms for B2B clients, it’s also worth thinking about how you present and enforce those terms. Many businesses start by clarifying payment terms early so there’s less friction later.
Key Takeaways
- In legal terms, side hustles are still businesses - if you’re taking payments, advertising, or collecting customer details, legal obligations can apply.
- Start by getting your structure and registrations right (especially if you have co-founders, higher risk, or growth plans), and make sure you’re eligible for an ABN and across your tax/GST basics.
- Australian Consumer Law (ACL) affects how you market, price, and handle refunds - even if you’re a small operator or selling online.
- Clear contracts reduce disputes and protect your cash flow, especially around scope, payment, deposits, cancellations, and IP ownership.
- Brand and IP protection matters early, because your name, content, and creative assets are often what make your side hustle valuable.
- If you collect personal information online, a Privacy Policy and well-structured website terms can help with compliance and customer trust (and may be legally required in some cases).
If you’d like a consultation on setting up your 2024 side hustle properly, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
