Do Influencers & UGC Creators Pay Tax on Gifted Products? A Simple Guide
IS CREATING CONTENT AN ONLINE A BUSINESS ?
If you are an influencer or UGC creator in Australia, it’s essential to understand the tax implications that come with your online success.
Any income earnt from platforms like Instagram, TikTok, or others is taxable. The moment you start posting with the intention of making money, you’re considered to be running a business according to the Australian Taxation Office (ATO).
THE DIFFERENT TYPES OF INCOME THAT NEEDS TO BE REPORTED IN YOUR TAX RETURN:
Endorsements & Sponsorships - Income received from endorsing or sponsoring products, services, or events on social media platforms.
Monetised Content - Revenue generated from monetised content, such as ads, on platforms like YouTube or Twitch.
Affiliate Marketing Earnings - Income earned through affiliate marketing where you receive a commission for sales generated through your unique affiliate links.
Cash Income - Any money received directly, whether from brand sponsorships, collaborations or direct payments from viewers.
Non-Cash Benefits - The value of non-monetary benefits received, such as free products, services, free travel, free accommodation, tickets to events, free clothes, free goods, in exchange for promoting a brand.
Gifts & Bartering - If you receive gifts or goods in exchange for services, their monetary value needs to be included in your income tax return.
Donations & Crowdfunding - If you receive donations or crowdfunding contributions, these amounts should be declared as income.
Event Appearance Fees - Any fees received for appearances at events or functions related to your influencer activities.
Income from Online Course or Subscriptions - If you offer online courses or have subscription-based content, the income generated should be reported.
Travel and Accommodation Benefits - The value of travel and accommodation benefits received, including business-related activities.
If you have any questions, or need assistance, please reach out to our team today.