ATO Goes After Influencers: Luxury Gift Crackdown Sparks Urgent Tax Warning
- Arnold Shields
- Apr 3, 2023
- 2 min read
Updated: May 16
Influencer marketing has exploded across Australia, with brands investing millions to collaborate with social media personalities who hold the power to influence consumer behaviour. But with this booming industry comes serious responsibility, and the Australian Taxation Office (ATO) is paying close attention.
In a strong warning to influencers and brands alike, the ATO has declared that any gifts, incentives or perks received through collaborations must be declared as income. That includes designer handbags, expensive jewellery, beauty treatments, and even high-end vehicles.
What Influencers Must Declare
The ATO classifies these luxury items as non-cash benefits, which are considered taxable. If you're an influencer, content creator or public figure receiving:
Designer fashion and accessories
Accommodation and travel perks
Vehicles or long-term car loans
Jewellery, beauty treatments, or cosmetic procedures
Event access or VIP experiences
...you are legally required to declare the fair market value of these items as assessable income on your tax return.
Brands Are Also Liable
It’s not just the influencers who risk penalties. Businesses gifting or loaning luxury goods and services must also report these transactions appropriately. If you're a brand manager or marketing executive, make sure your organisation is correctly documenting influencer arrangements and reporting any taxable benefits.
ATO Monitoring Social Media
The ATO isn’t taking this lightly. They're now using advanced data-matching technology and artificial intelligence to monitor social media platforms for signs of undeclared income. If your Instagram profile shows off that new designer bag or car, but your tax return doesn’t, expect questions.
This initiative is part of a broader crackdown by the ATO on underreporting of income, including rental properties, overseas assets, and digital transactions.
The Risk of Non-Compliance
Failing to declare income, including non-cash benefits, can lead to:
Administrative penalties
Interest charges
Audits
In severe cases, criminal prosecution for tax evasion
How to Stay Compliant
If you’re unsure whether something you received is taxable, play it safe:
Declare the market value of all gifts and incentives
Keep records of all collaboration agreements and gifts
Get professional tax advice before lodging your return
Likewise, if you're a business, ensure your influencer contracts are clear on the value and tax implications of any gifted items or services.
Get Help Before It’s Too Late
With the ATO’s net tightening, it’s more important than ever to get your affairs in order. Whether you're an influencer monetising your platform or a brand working with digital creators, don't leave your compliance to chance.
At Dolman Bateman, we help influencers and digital professionals stay tax compliant, avoid costly mistakes, and structure their income streams effectively.
Contact us today for expert advice and peace of mind.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
