Brand Deals, Gifting and Free Products: What’s Taxable and What Isn’t in 2026
- Feb 12
- 3 min read
If you are an influencer, content creator, or online brand ambassador, non cash benefits are no longer a grey area. The ATO has made its position very clear. Free products, gifted services, and brand deals are now under closer scrutiny than ever before.
The primary issue we see is a misunderstanding of what counts as income when no cash changes hands. Many creators still assume that if money was not paid, tax does not apply. That assumption is now risky.
Why this Matter in 2026
The ATO has tightened its guidance and data matching around influencer activity. Platforms, brands, and payment processors are sharing more information. Gifting is now being treated more aggressively as assessable income where there is a clear expectation of promotion, posting, or endorsement.
If you receive something because of your profile or audience, the ATO is likely to view it as income, even if it was labelled as a gift.
What is considered taxable
You are generally required to declare non cash benefits as ordinary income where there is a connection to your business or content activity. This includes:
• Free products received in exchange for a post, reel, story, or mention
• Gifted services such as travel, accommodation, beauty treatments, or professional services
• Brand deals paid partly or fully in products instead of cash
• Items you keep and use personally where they were provided because of your influencer status
The value to declare is typically the market value of what you received.
What is usually not taxable
There are limited situations where a benefit may not be assessable:
• Genuine personal gifts from friends or family unrelated to your content
• Low value, unsolicited items with no expectation of promotion
• Discounts that are broadly available to the public
These situations are narrow. If there is any expectation, written or implied, that you will promote or feature the item, it is unlikely to be exempt.
ATO focus on non cash benefits
The Australian Taxation Office treats influencer activity as a business where it is carried on with regularity and intent to profit. Under ordinary income principles, non cash benefits are assessable in the same way as cash payments.
This means failing to report gifted items can result in amended assessments, penalties, and interest. The ATO has been clear that ignorance is not a defence.
Common mistakes we see
• Not tracking gifted items at all
• Assuming only cash income is taxable
• Mixing personal and business use without records
• Declaring income but missing the related deductions
• GST errors where gifts are part of a broader commercial arrangement
These mistakes compound quickly and often surface during reviews or audits.
What you should be doing now
You should be keeping clear records of all brand deals and gifts received, including screenshots, emails, contracts, and estimated market values. Your accounting system should reflect both cash and non cash income, and your tax return should align with your actual activity online.
If things feel messy, that is common. It is also fixable.
Call to action
If you are unsure whether your brand deals or gifted products have been treated correctly, now is the time to act. A compliance clean up can correct past errors, reduce penalty risk, and put proper systems in place before the ATO comes knocking.
Book a compliance clean up with Dolman Bateman and get clarity before it becomes a problem.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
