EOFY for side hustles: Why your business could benefit from a separate bank account

By Peter Terlato · · 2 min read
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Whether you’re running an online store, freelancing after hours or delivering Uber Eats on your bike, your side hustle could be under the tax microscope at the end of the financial year (EOFY).

If you're one of the 1.1 million or more Aussies operating as an independent contractor, keeping your business and personal finances in one account can quickly become a tangled mess – especially when it's time to declare income, claim deductions or respond to an audit.

That’s why opening a separate bank account isn’t just a smart EOFY move; it may be the simplest way to protect your business, streamline your next tax return and keep the ATO off your back.

Why those with a side hustle should separate finances

Independent contractors (freelancers) and sole traders aren’t legally required to open a business bank account, but the ATO strongly recommends it. Why? Because using a single account for both personal and business spending increases the risk of:

  • Overlooking income that needs to be declared.
  • Losing receipts or invoices tied to business purchases.
  • Accidentally claiming personal expenses as deductions – a common red flag for audits.

If you're earning more than $18,200 from your side hustle in a financial year, that income is taxable. But even if you’re well below the threshold, it’s still good practice to track earnings and expenses properly. Having a dedicated account can make that tracking automatic.

Plus, come tax time, you won’t need to wade through months of mixed-up transactions.

What to look for in a business-friendly bank account

You don’t need to pay monthly fees or sign up for a premium business package to split your finances. Many everyday bank accounts available to sole traders and freelancers offer the basics: a separate BSB and account number, online access, and automatic transaction tracking.

Here are some key features to look for:

  • No monthly account-keeping fees.
  • Easy integration with accounting software like Xero, MYOB or QuickBooks.
  • Instant notifications to help monitor income and track expenses on the go.
  • Linked savings account to set aside tax payments or super contributions.

Digital banks often offer app-first accounts with built-in savings tools and no fees, making them ideal for those who want a clean split between personal and business funds without overheads.

For example, if you’re already banking with ING, you could set up a second Orange Everyday Account to use just for your business income and link it to a high-interest ING Savings Maximiser to store tax or business activity statements’ (BAS) contributions.

EOFY tip: Create a tax buffer with a savings account

Earning income as a contractor or sole trader means you’ll likely owe tax at the end of the financial year – especially if you haven’t been withholding anything throughout. That’s why a separate savings account for tax season is helpful. Not only will it keep that money out of your spending account, but it can also earn you interest while you wait for your tax bill. View

Compare bank accounts for your side hustle

  • Orange Everyday

    Account fee
    $0.00
    Payment options
    Apple Pay, Google Pay, PayID, PayTo
    Interest rate
    0.00 % p.a.
    Go to site

    ING’s Orange Everyday bank account offers no monthly fees and 1% cashback on eligible utility bills up to $100 (T&Cs apply). Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • Choice

    Account fee
    $5.00
    $0 monthly account fee for 12 months when you open an account by 30 september 2025. account fee is also waived for customers that deposit at least $2,000 per month.
    Payment options
    Apple Pay, Google Pay, Samsung Pay, Fitbit Pay, Garmin Pay, Digital Card
    Interest rate
    0.00 % p.a.
    Go to site

    Enjoy no monthly account-keeping fees for the first 12 months, for deposits of $2,000 a month or for eligible customers. No withdrawal fees at branded and select non-branded ATMs. No international transfer fees when sending foreign currency overseas via Online Banking or the Westpac App. Unlimited free transactions and account enquiries.

  • Everyday Account

    Account fee
    $0.00
    Payment options
    Apple Pay, Google wallet
    Interest rate
    0.00 % p.a.
    Go to site

    In addition to $0 monthly account-keeping fees and 24/7 real human support, you can turn your everyday banking into Qantas Points. Link your Qantas Frequent Flyer account to your AMP Bank GO Everyday Account, in AMP Bank GO and earn 1 point for every $10 on your average monthly balance. T&Cs apply.

  • Spend Account

    Account fee
    $0.00
    Payment options
    Apple Pay, Google Pay, PayID, Samsung Pay, Garmin Pay
    Interest rate
    0.00 % p.a.
    Go to site

    This account works hand in hand with the USave account. No monthly fees on any of your spend accounts. No uBank international fees to pay. Get instant access to Apple Pay and Google Pay. Plus you could go into the draw to win 1 of 50 cash prizes by signing up and using your Ubank Visa Debit Card between now and 30 June 2025 (T&Cs apply).

  • Everyday Options Account

    Account fee
    $0.00
    Payment options
    Apple Pay, Google Pay, PayID
    Interest rate
    0.01 % p.a.
    Go to site

    Enjoy 0% foreign currency conversion fees on Visa Debit card purchases. Plus make an eligible purchase using your linked Visa Debit card to earn cashback at participating merchants. $0 monthly account keeping fees & the option to open up to 9 sub-accounts. Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL 229882 Australian Credit Licence 229882). The SUNCORP brand and Sun Logo are used by Suncorp Bank (Norfina Limited) under licence and Suncorp Bank is not part of the Suncorp Group.

  • Everyday Global Account

    Account fee
    $0.00
    Payment options
    Apple Pay, Google Pay
    Interest rate
    0.00 % p.a.
    No Partner link

  • Everyday Edge Account

    Account fee
    $0.00
    Payment options
    Apple Pay, Google Pay, PayID, Samsung Pay
    Interest rate
    0.00 % p.a.
    Go to site

    This bank account has no account keeping fees to pay. There are unlimited fee-free domestic transactions. Safe and secure digital banking. Fee-free card purchases and cash-out transactions in-store. Free access to thousands of ATMs nationwide. For customers 18 or over.

^See information about the Mozo Experts Choice Bank Account Awards

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