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Read your permie job contract: they often say moonlighting is forbidden.
It is not illegal.
WHS.
It's not illegal but may be against your contract. If they are similar businesses, then your employer probably won't be happy. If you use company time and equipment to produce anything, then they will have a VERY good claim of ownership on anything you produce for someone else.
Tax implications are that you need to pay tax on your income. If you choose to do this, I would set up a limited company, but draw no salary or dividends from there (unless you need to top up your salary). Ditch the permie job at some stage and go contracting full time, by which time there should be some cash in the business.
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