Australia has one of the most active private tutoring markets in the world, and the shift to online delivery has made it easier than ever to build a substantial tutoring or educational coaching income. Whether you teach VCE subjects, primary school curriculum, adult English, music, coding, or professional skills — once you are charging students, you have tax obligations. Many tutors and education coaches underestimate their obligations because their income feels informal — cash payments, small transfers, occasional bookings. The ATO does not make this distinction.
Is My Tutoring a Business or a Hobby?
If you are regularly charging for your teaching services with the intent to make a profit, it is a business. The size of the income does not determine this — a tutor earning $400/week is operating a business in the same way as one earning $4,000/week.
Indicators of a business:
- You have regular, repeat students
- You set your own rates and issue invoices or receipts
- You actively seek new students (advertising, word of mouth strategy)
- You have structured lesson plans or course materials
Do I Need an ABN?
Yes — if tutoring is your business, you need an ABN. This is true whether you tutor independently, through a tutoring agency (as a contractor), or via your own online platform.
If you work for a tutoring company as an employee, you do not need an ABN — your income goes through payroll. However, many tutoring agency relationships are contractor arrangements, which do require an ABN.
What Counts as Taxable Income?
Receiving payment in cash does not make it tax-free. The ATO's data matching with banks and digital platforms means cash underreporting carries genuine audit risk.
- All private tutoring fees, regardless of how they are paid
- Cash payments (the ATO cross-references data — cash income is not invisible)
- Bank transfers and digital wallet payments (PayID, PayPal)
- Online platform payouts (Tutoroo, Cluey, Wyzant, iTutor)
- Group class income
- Income from selling lesson materials, worksheets or curriculum guides
- Online course sales on platforms like Udemy or your own website
When Must I Register for GST?
Once your annual business turnover from all tutoring and educational activities exceeds $75,000, GST registration is compulsory. For many full-time tutors or coaches with group programs, this threshold is reachable.
Educational services and GST: Most private tutoring is a taxable supply — you must charge and remit 10% GST once registered. However, certain school curriculum delivery by registered schools is GST-free; private tutoring by individuals is generally not.
What Expenses Can Tutors Claim?
The key points are below:
- Textbooks, study guides and curriculum resources used for tutoring
- Subscription to educational platforms — Khan Academy Pro, study resource platforms
- Zoom, Teams, or other video conferencing subscriptions
- Online whiteboard tools — Miro, Explain Everything, Bitpaper
- Marketing costs — website, Google Ads, social media advertising
- Home office expenses — proportional to hours spent on tutoring work
- Professional development — teaching certifications, TEFL/TESOL qualifications
- Professional memberships relevant to your teaching subject area
- Stationery, printing and physical teaching materials
- Accounting and bookkeeping costs
- General household furniture or decoration (even if in a home office)
- Personal entertainment, gaming or media subscriptions (unless directly used in lessons)
- Travel from home to a student's home for the first lesson of the day
Tax on Tutoring Income — What Rate Do You Pay?
As a Sole Trader, your net tutoring profit is added to all other income (salary, investment income, etc.) and taxed at your marginal rate. If your only income is tutoring and it is below $18,200, you pay no income tax. As income grows, marginal rates increase.
At $70k–$100k+ net tutoring income, a company structure may become worth investigating — particularly if you are building a tutoring business with students on recurring programs rather than casual one-off sessions.
Working Through an Agency — Contractor or Employee?
Many online tutoring platforms engage tutors as contractors. However, the ATO's employee vs contractor distinction depends on the actual working relationship, not the label. If the platform:
The ATO may classify the relationship as employment rather than contracting. This matters for super contributions, PAYG withholding, and your ABN obligations.
- Controls your rates and availability
- Provides all the students and tools
- Does not allow you to work for competing platforms
General information only
This article provides general tax information only and does not constitute personal tax, legal, or financial advice. Tax rules can change and individual circumstances vary.
If you would like advice based on your situation, please get in touch with the practice.
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