When Queenie Tan started earning income as a content creator, she was a bit "scrappy" with her record keeping.
"I wasn't earning very much, it was just on the side," the 29-year-old licensed financial creator from Sydney/Gadigal Country says.
"My first purchase was a $50 microphone — I would forget to keep receipts for those sorts of things, but you should, because that could be deducted."
Jenny Wong, tax lead in policy and advocacy at Australia's largest accounting body CPA Australia, says influencers may not be aware of what they can claim on tax, as well as what they need to declare.
For example, non-cash benefits such as gifts.
Ms Wong says income generated from side-hustles has become a major focus for the Australian Taxation Office (ATO), with digital service platforms such as YouTube and OnlyFans now legally required to report the income earned by their users.
"[Sometimes content creators] think it's a hobby and they don't need to declare … but if there is some regular activity or potential of making profit, then in most cases, generally the ATO will see that as income."
Tax implications 'the same' for influencers
The tax implications of earning money from content creation, including content created as an influencer on social media platforms, is "the same as for anyone else", an ATO spokesperson says.
"Income earned is taxable, regardless of the form in which it is given to you."
If you are paid with goods or other benefits, for example being able to keep an outfit used in a post, or being "gifted" something, that is classed as a "bartering transaction".
And that is subject to the same income tax and GST treatment as normal cash or credit payments, the spokesperson says.
Is influencing a business?
If an influencer is earning money through continuous and repeated activities for the purpose of making a profit, then it's likely they are running a business, according to the ATO.
"If so, they will need to register for GST and lodge a business activity statement if they exceed or expected to meet the GST turnover threshold of $75,000 per annum," the spokesperson says.
Influencing would not be considered a business if it was a one-off transaction, or a hobby, or recreation in which you don't seek to profit, for example.
What can influencers claim on tax?
Queenie, who has 450,000 followers across her social platforms, is now a full-time content creator.
And she has become much better at knowing what she can claim.
Because she makes video content, Queenie has claimed camera equipment, microphones and lighting equipment on her tax.
The ATO says to be able to claim a deduction for an expense you must spend the money yourself and not get a reimbursement, the expense must directly relate to earning your income, and you must have a record to prove it (usually a receipt).
"You can only claim GST credits for the GST included in the price of any goods and services acquired for business purposes," a spokesperson says.
Queenie says she stays on top of her tax by keeping things separate to her everyday spending.
"Now I use [an app] which just makes it so much easier. It connects to all your bank accounts, and now I have a separate credit card just for business purposes."
The ATO spokesperson says it is important to maintain accurate records.
"We have sophisticated data-matching and analytical tools that enable us to identify under-reporting of income or not being registered for GST when required to be.
"Where we identify people that have made a genuine mistake, we will support them in understanding the law and getting back on track."
If in doubt, Ms Wong recommends people see a registered tax accountant.
"Don't risk it."
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
