Passive Income Ideas for Australians – Learn Why Some Are Better Than Others

After the pandemic proved that job security is almost a myth, finding an alternative income has become necessary for many Australians.

Most people are looking for a passive income channel to help them meet their needs if or when their traditional careers are at a standstill. 

However, randomly choosing an industry as the source of passive income does not work out. Instead, you have to think about your skillset, the viability of the income source, and the time you can give to this ‘passive job.

Just to be clear here, a passive job doesn’t mean you don’t have to work for it. It just means you don’t have to work as much as you do for your career. For instance, if you dedicate 40 hours per week to your actual job, the passive income job, on average, would require under 10 hours a week.

In this guide, we have listed some of the best passive income ideas for Australia. These ideas are entirely legal, and their learning curve isn’t particularly steep.

With some initial practice and an unrelenting mindset to learn, it will be easier to get started with these income channels. The result may rely on various factors, though.

#1 Freelance Writing

If you have your way around words, freelance writing is one of the best passive income ideas in Australia. It doesn’t even require you to have an official degree.

As long as you can write compelling pieces without any grammatical/syntax errors, you can find plenty of freelance projects online. Quite conveniently, they all can pay you via PayPal or bank transfer, depending on the freelancer platform you have chosen. 

Furthermore, freelance writing assures you a minimum versatility of choices. Some of the common subjects include technology, lifestyle, automobiles, travel, and food, but the proper list is endless.

Based on how well you can write, freelance writing as a passive income can give you anywhere between $100 to $1000 a month. When getting started, you can use writing assistants like Grammarly as well.

Freelance writing offers flexibility when it comes to the hours you can dedicate to the job. Similarly, you will not have to wait too long for the payments.

#2 Affiliate Marketing

If freelance writing is too ‘controlled’ for you, affiliate marketing is your next best choice. Affiliate marketing is a process of promoting a specific product or service to people on the internet or in the real world.

When a person buys the product or service using your referral link, you will receive a commission from the merchant.

While there are multiple ways to carry out your affiliate marketing campaign, a blog is the best option.

Once again, you don’t have to worry about choices in this sector. Based on what you would like to promote, you can choose between an immense variety of brands or affiliate platforms.

Many people get started with Amazon, but Commission Factory and ShareASale are also great options. If you can attract a fair amount of traffic, affiliate marketing can help you earn three or four-digit income in just a few months.

Compared to writing, affiliate marketing doesn’t require a constant input of hours. You can also hire people to do the jobs you can’t. However, you may have to wait for an extended period to see any results.

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#3 Savings Account

I know, it’s not fair right? But if you have a fair amount of savings, a high-yielding savings account is the easiest way to earn proper passive income in Australia.

Compared to a standard savings account, high-yield accounts offer better interest rates. Because you don’t have to do any work, you can consider the interest as practically free money. Of course, you may have to compare the interest rates offered by the banks in your region first.

The limitation here is that you should have some money to invest in the first place. In most cases, the interest rates from these accounts are less than 2% per annum.

Therefore, if you don’t invest a reasonable amount, you won’t notice many changes. You should also ensure that you choose a credible bank that doesn’t manipulate the conditions or put your money in a loop.

While high-yield savings accounts don’t require any work from your side, returns from these accounts aren’t as high as the other passive income sources we have mentioned. The others require more of your time.

#4 Content Creation

If there is something that hasn’t witnessed a decrease in demand, it’s digital content. Day by day, we come across new platforms and niches of digital content as well.

Therefore, regardless of where you are from, you can earn an excellent passive income by generating valuable content on a digital platform. The monetisation options depend on the platform, though.

For instance, YouTube used to be the major space for digital content until a few years ago, but now it’s shared by Instagram and Snapchat.

However, you can monetise your YouTube videos using the central YouTube Ads program.

Instagram requires a different approach. On Instagram, you have to wait until your content attracts collaborations from brands.

Content creation, too, cannot promise you a consistent income. The results depend on how successful your venture is and the earning potential of the niche you’re in.

#5 Invest in Stocks

Investing in stocks that pay you dividends is another passive income source you should check out. Unlike day trading, this type of investment doesn’t require constant attention from your side.

Instead, you can analyse the market insights, choose the right stocks, and invest in them. When you get your quarterly dividends, you can either cash them or reinvest the profit.

At the same time, it’s not an invest-and-forget strategy. To confirm that your stocks have value and that the business entities perform according to the expectations, you should keep an eye on the market.

You might also have to make some decisions regarding how to move the stocks around. In any case, however, you will not have to spend more than a few hours per week.

Like anything else on the stock market, investment in dividend-based stocks also poses a few risks. However, the stakes are very low compared to day trading, and you don’t have to spend hours on the desk.

#6 T-Shirt Drop Shipping

Like digital content, t-shirts have also stood the test of time in terms of demand. Therefore, drop-shipping t-shirts is still one of the easiest ways to earn a passive income in Australia.

With t-shirt drop-shipping, you have to design customised t-shirts and sell them to your customers. Thanks to the comprehensive drop-shipping platforms, this process is easier than you think.

Dropshipping services take care of everything related to t-shirt fulfilment, not the sales. You need to understand the market and lifestyle trends and consumer demand. IE: Understand your customer. This will improve your ability to increase sales.

In the past few years, we have seen the rise of t-shirt sales entrepreneurs in Australia, but the market is still not saturated. If you have some trendy ideas and some time to invest, t-shirt drop shipping can make you rich faster than you think.

To get started with t-shirt drop shipping, you should have a minimal online store or another digital space. It’s capable of giving you a multi-figure monthly income if you know what to sell.

Dropshirt is where to get ‘Print-on-demand’ merch that is shipped directly to your customer. As a print-on-demand service, you hold no stock. Order just one. As a ‘white label’ service. It even looks like you shipped it. Create an account here.

#7 Rent Out Your Space

Due to the increasing business opportunities and scope for growth in Australia, we see an ever-rising demand for residential and office spaces.

So, renting out the extra residential/office space you have can be a great source of passive income. This passive income idea can take different forms, though. For instance, if you are talking about residential spaces, Airbnb is an excellent option.

Airbnb has become the go-to option for utilising the extra space by renting it out to tourists. However, if you are looking for consistent and long-term investment, you should consider renting the space out to start-ups or other businesses.

Depending on where you live in Australia, you should check out platforms that work as a mediator between people who have spaces and those who need them.

Depending on the extra space you have, you may have to work on them to make it suitable for tourists or a business. However, this can be a great way to enhance the returns.

#8 Start a Blog

Don’t believe people when they say reading on the internet is dead. Of course, people have shifted to digital content platforms like YouTube and Instagram. However, the blog (a website about a specific topic) is not dead

However, if you can build and nurture a blog in the right way, it can provide you with a good amount of passive income. Unlike a pure affiliate marketing website, you would have more options to monetise your blog.

On the flip side, maintaining a blog requires a constant supply of your time. You will have to take care of a number of aspects like Search Engine Optimisation, content, marketing, and advertising.

At the same time, it is possible to create a good brand by contributing the right combination of content and marketing. There are also options to get direct sponsorships and deals from brands.

Starting a blog as a passive income source does not cost you a lot. However, maintaining it requires a lot of time and skill acquisition.

If you need help starting a website we have some affordable done-for-you packages over on this site

#9 Turn Your Car into a Passive Income

There are multiple ways to use your vehicle as a source of passive income. The first one is to use ride-sharing services like Uber, which allow you to become a part-time driver.

When you get out for your own needs, you can check for available trips in the area and get them. As long as you have a valid driver’s license, using Uber is an easy task.

The second option would be to rent your car to someone else. Of course, you can get a better income from this source, but you pose the risk of giving the car to potentially a stranger, although for a short period.

On the bright side, car-renting platforms take sufficient precautions to ensure that your vehicle doesn’t get in trouble.

If you have a car that you don’t use much, you can use any of these passive income ideas. Depending on how much you can do this for, you can earn a good amount too.

#10 Write a Book

Is there a topic that you are interested in? Can you organise your ideas in a way that readers love? If you can say Yes to these questions, you can consider writing a book as a passive income.

It is similar to creating a blog and writing articles, but it isn’t in many ways. First of all, writing a book will require a lot of time. You’ll have to split this time between writing and research alike.

You should pay extra attention while choosing the subject of the book as well. Look out for topics that people need a book on but can’t find many. Topics like these may be technical, but the extra effort you put in would reflect in returns.

You also have to choose between publishing an eBook and a printed book. Unlike the old days, both can give you incredible returns if written and marketed correctly.

Writing a book isn’t the best passive income source for everyone. However, nothing can stop you from trying your best to construct your best ideas.

#11 Complete Micro Tasks

Completing micro tasks and surveys is an effective way to earn passive income. It works even if you don’t have much technical expertise.

Hundreds of websites help you check out such gigs, and you can choose one that suits your needs. Some of the tasks you may complete are proofreading, surveys, user testing, etc. You can also select a job that requires better expertise.

The problem with micro jobs is that you may have to work too much to earn a fair amount of money. Most of these platforms pay you via PayPal, which is a convenient payment method in Australia. At the same time, you can check out websites like Fiverr, where you can offer your freelance services for a fixed price.

If you can complete repetitive tasks regularly, micro-task websites can help you make a lot of money. On the other hand, you can offer custom-made microservices as well.

#12 Invest in Real Estate

If you have a fair amount of capital, you can use the power of real estate to earn a decent passive income. It is all about deciding where you want to invest, though.

Also, the passive income may not be regular. That is, you may have to wait until a few years or months before you see the profit in your hands. However, you can choose between a couple of options in this sector.

For instance, you should check out crowd-funded real estate investments. In this case, you become a part of an under-construction real estate property by buying shares.

By choosing this way, you avoid the situation of needing such a high capital. However, if you know where to invest, crowd-funding real estate will give you impressive returns as well.

Investments in the real estate sector don’t require a lot of effort from your side. However, when you make these decisions, they should be sharp and strategic.

#13 Become a Photographer

If you have a thing for photography, there are many ways to earn a passive income. One of the easiest ways is to sell stock images on platforms.

In case you didn’t know, there is still an increasing amount of demand for stock photographs and footage. You can tap on this demand if you know how to use a camera and point it in the right direction.

Popular stock photo platforms have a dedicated section where you can find submission guidelines. In most cases, you will have to register for an account and analyse the trends on the platform. Make sure that you submit photos in categories where a void exists. By doing so, you can increase your chances of getting paid more often.

Like any other mode of content creation, becoming a stock photographer doesn’t give you assured returns. However, you can keep this as one of the many options on the table.

#14 Narrate Audiobooks

Here is another passive income idea for many Australians out there. If you love to read, you can use the time to narrate some audiobooks and earn money for them.

Considering that people choose audiobooks over the printed alternatives nowadays, we have an unsaturated market at our disposal. You just have to find the right platform for your needs.

The upfront investment for this income idea is a little high, though. In addition to a good computer, you need a good microphone and a noise-free environment.

You cannot compromise the sound quality when narrating something for digital consumption, you know. If you can get around that and convey the story or the content in the best way, you’ll find a sure-shot semi-career in audiobook narration.

Considering that you can choose between an impressive collection of books to narrate, this passive income idea should be fun for most people.

Wrapping Up

You should choose between these passive income ideas based on how much and what you can invest during the process. While some of these require you to learn some skills, others work for almost anyone.

For instance, blogging is a no-brainer choice as a passive income source if you have a topic that you can write about. On the other hand, audiobook narration and stock investment require some knowledge acquisition, either in strategy or technical expertise.