Social media influencers, bloggers, and other online creators can make a full-time living by posting informational, aspirational, and promotional videos on popular social platforms like TikTok, Instagram, and YouTube.
As with other income-generating roles, you must submit your total income to the Australian Taxation Office and pay relevant taxes, but are there ways to minimise your total tax bill?
Read on as we highlight liabilities and list possible deductions!
Which Taxes Do Online Creators Pay?
As a full-time content creator, you may register for self-employment or as a sole trader. With both registrations, you must submit your tax return and pay income tax at the marginal rate dependent on your yearly intake.
- $18,201–$45,000: 19 cents per dollar after making $18,200
- $45,001, 120,000: $5092 and 32.5 cents for every dollar after $45,000
- $120,001–180,000: $29,467 and 37 cents for every dollar over $120,000
Check our post on the stage three tax cuts for relevant figures for July 2024.
Bartering exchanges apply when you’re paid with non-cash rewards. Here, the same income tax conditions apply.
The ATO deems influencing and content creation more than a hobby when you earn $600 or more monthly and will assess the income. You don’t need to pay GST unless you turnover $75,000 from selling goods and services directly.
Which Tax Deductions Can Influencers Receive?
As an influencer, you could deduct the following costs provided you have sufficient evidence that it’s a work expense:
Equipment
Resources needed to perform work-related tasks include a computer, camera, tripod, lighting, and sound recording equipment. Other computer hardware pieces, like a mouse, keyboard, and Wi-Fi router, are also eligible.
According to the ATO, items required for videos, like make-up products, can be partially deductible.
Online Resources
Subscriptions to pieces of software, editing platforms, and streaming sites might apply, provided they’re for work-related tasks. You may have to prove this with a logbook, for example.
Travel Expenses
You could deduct the cost of a train, bus, or plane ticket if you have to travel to a work-related event, such as a photo shoot or interview. You’d need to calculate the petrol price for the mileage covered getting to and from the event if you drive. You cannot claim personal journeys or detours.
Advertising and Design Costs
Branding is a huge part of influencing to generate a following. Claim expenses spent on design, development, and search engine optimisation services. Allowed tax deductions cover hiring a specialist, like a photographer or graphic designer, during these processes.
Mobile Phone Expenses
Calculate the percentage of time per day spent working and deduct this from your mobile phone bill. This is the amount you can claim from the ATO. You can claim the whole bill if your mobile is solely for influencing.
Operational costs
Deduct usual operational costs, like heating, lighting, and office furniture, if you use a dedicated workspace outside your home. Food and drink for these areas are not eligible.
Access Individual Taxation Support with Advisory One
Navigating tax compliance is a complex road. Our individual taxation services provide focused support, helping you hit every deadline prompt, save enough, and maximise your yearly savings.
Contact us today to book an initial consultation with one of our chartered accounts!
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