I’m a content creator. How will I be taxed?

If what you are doing is a genuine hobby with no expectation of generating a profit then tax is not due.

If however you start to make money for the content you are creating, then chances are you are a content creator and tax will be due.

What is content creation?

A content creator is someone who produces and shares information or media content for specific audiences in a digital format.

Examples of content creation

• Posting make up tutorials
• Content for subscriber-based sites such as OnlyFans
• Writing a blog
• Streaming gaming for others to see

Tax considerations for content creators

The ATO makes it very clear that assessable income includes:

• money received
• gifts received
• goods received
• appearance fees
• cryptocurrency
• destination holiday

Income in the form of money is easy to track and report. Non-monetary income in the form of goods is not so easy, but The Tax Office does expect you to declare the market value of any gifts as income and pay tax on that income.

Receiving multiple or larger items throughout the year may create a cashflow problem when you need to pay real money to the Tax Office for a ‘free’ product.

The timing of when you receive this income is also important. The tax rules consider that you have earned the income “as soon as it is applied or dealt with in any way on your behalf or as you direct”. So, hiding the income received in your platform’s account will not protect you from paying tax on it.

From 1 July 2023, a new reporting regime requires electronic distribution platforms to report their transactions to the ATO. The regime starts with ride sharing and short-term accommodation platforms, then extends to all other platforms from 1 July 2024.

Do I need to register for GST?

Generally, once you earn or expect to earn $75,000 or more per annum, you will need to register for GST. The exception to the $75,000 threshold is Uber and other ride-sourcing drivers who must have an ABN and be registered for GST regardless of how much they earn.

What deductions can I claim?

If you spend money to generate income, you can claim a deduction for certain expenses that directly relate to that income.

So, items such as video production equipment, microphones, accessories to make videos etc., might be deductible although in some cases the deductions will be spread over a number of income years.

Here to help

There are some important things to think about if you’re a content creator and TaxAssist Accountants are here to help.

Can you afford to accept gifts which you have received? How will it affect your cash flow? Have you considered how the income you earn will affect your other amounts payable? Sole trader income counts towards your total assessable income, so it could impact your study loans or Medicare calculation.

TaxAssist Accountants can help you navigate all of your tax obligations ensuring you pay what is due and no more. Call us today for a free initial consultation.

Date published 13 Jun 2023 | Last updated 13 Jun 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.