Influencers must declare gifts and sponsorships as business income to ATO
The ATO requires content creators to report gifts and sponsorships as income if they earn over $75,000 a year.
The Australian Taxation Office has made its first official ruling on how social media influencers pay tax. Content creators on Instagram and TikTok must now declare everything they receive in exchange for promotion, cash, free products, experiences, sponsorships, tips and donations, as business income.
If a creator earns more than $75,000 a year, they need an Australian business number and must register for GST. This could also include submitting a quarterly business activity statement.
ATO assistant commissioner Anita Challen said many creators grow fast but don't keep proper records. "Free doesn't mean tax-free," she said.
"If it's part of how you earn, it needs to be recorded."
- $75,000
- Annual registration threshold
- Anita Challen
- ATO official
- Jenny Wong
- CPA Australia tax lead
Why it mattersInfluencers who don't report gifts and perks now face penalties, and the threshold to register as a business is lower than many creators realise.
AustraliaAustralian content creators and influencers earning from social media must now formalise their tax obligations or risk ATO action.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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