So, you're killing it on Instagram, YouTube, OnlyFans, Tiktok, Twitch, or Patreon, getting paid in cash, sponsorships, and PR gifts—but do you actually need to pay tax on it?
The short answer? Yes.
Many influencers think that if they’re not getting a paycheck like a 9-to-5 job, they don’t have to report their income. But the ATO doesn’t see it that way. Whether you’re earning money from brand deals, ad revenue, affiliate links, or even receiving free products—it all counts as income.
Is Influencing a Business?
The first thing to work out is whether you're considered a business or just making some extra cash. The ATO looks at:
✔ Whether you've decided to be in business
✔ Whether your activities are repeated and continuous
✔ If you have an intention to make a profit
✔ If you operate in a business-like manner
💡 If you're in business, you’ll likely need an ABN, and you’ll need to work out how much tax you owe.
💡 If you’re not in business, you still have to declare your earnings, even if it’s just a side hustle.
What Counts as Income?
It’s not just cash payments that you need to declare. Here’s what the ATO considers taxable income:
💰 Cash payments from brands, sponsorships, and affiliate programs
💰 Tips, gifts, or “donations” from followers
💰 Paid brand collaborations and partnerships
💰 Earnings from platforms like YouTube, Instagram, Tik Tok, Twitch, Patreon, and OnlyFans
💰 Products received in exchange for promotion (e.g., clothing, makeup, tech gadgets)
💰 Event appearance fees
💰 Licensing fees for your content
🚨 Even foreign income counts! If you’re getting paid from an international brand or platform, you still need to report it on your Australian tax return.
What About Freebies? Aren’t They Just Gifts?
One of the biggest misconceptions influencers have is that free products don’t count as income. Wrong.
🚨 Reality check: If a brand sends you a luxury handbag, a skincare package, or a free holiday in exchange for a post, that’s considered income—and it must be declared.
Why? Because the company that sent it to you is likely claiming the cost as a tax deduction, meaning there’s already a record of the transaction. If you don’t declare it, the ATO can easily track it.
💡 Example: A brand sends you a $5,000 designer bag in exchange for a sponsored post. That’s $5,000 worth of taxable income, even though you weren’t paid in cash.
What If I Don’t Pay Tax on My Influencer Income?
Ignoring your tax obligations isn’t worth the risk. If you don’t declare your earnings, you could:
⚠️ Be hit with an ATO audit
⚠️ Owe back taxes, interest, and penalties
⚠️ End up with a big tax bill you weren’t prepared for
How Do I Declare My Income?
✔ If you’re a sole trader, you can report your income on your individual tax return.
✔ If you’ve set up a company, there are different tax rules (and we can help with that).
✔ Even if it’s just a side hustle, you still have to declare your influencer earnings.
💡 Tip: If you’re earning decent money, you might want to set up Pay As You Go (PAYG) instalments so you’re not stuck with a huge tax bill at the end of the year.
Need Help? We Get Influencers.
At Dolman Bateman Chartered Accountants, we:
✔ Know influencer tax inside out – No guesswork, just expert advice.
✔ Help you stay compliant – Avoid fines and ATO audits.
✔ Ensure you claim the right deductions – Maximise what you can legally claim.
✔ Set up the right business structure – Whether it’s an ABN, company, or sole trader, we’ll guide you.
✔ Make tax easy for you – So you can focus on your brand!
Book a consultation today and let’s get your influencer income sorted!
Contact us before the ATO comes knocking.
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