Do Influencers Pay Tax on Free Gifts, PR Packages and Brand Deals in Australia?
A 2026 Tax Guide for Influencers, OnlyFans Creators, TikTokers and YouTubers
Imagine receiving a $2,000 designer handbag, a complimentary hotel stay or a box of skincare products from a brand.
You haven't received any money, so surely there is no tax to pay?
Not necessarily. The Australian Taxation Office (ATO) may consider free products, sponsored holidays and other non-cash benefits taxable income when they are received in connection with your content creation activities.
Whether you earn money through Instagram, TikTok, YouTube, OnlyFans or another platform, understanding how gifted products and brand collaborations are taxed can help you avoid unexpected tax bills.
At Dolman Bateman Chartered Accountants, we assist content creators and influencers with tax returns, business structures, GST and deductible expenses.
Here's what you need to know.
1. Do Influencers Have to Pay Tax on Free Products?
Yes, in many circumstances.
If you receive products or services in exchange for promoting a brand, creating content or providing another business service, the value of those benefits will generally be assessable income.
This can include:
Clothing, shoes and handbags.
Makeup and skincare products.
Jewellery and accessories.
Hotel accommodation.
Flights and sponsored holidays.
Electronics and filming equipment.
Restaurant meals.
Gift vouchers and other non-cash payments.
The ATO specifically identifies products and services received in exchange for content creation activities as potential assessable income.
Example: A $1,500 handbag collaboration
A fashion influencer agrees to create an Instagram Reel promoting a handbag.
Instead of receiving cash, the brand provides a handbag worth $1,500 as payment.
Assuming $1,500 is its appropriate taxable value, the influencer generally needs to include $1,500 in assessable income.
The fact that no money was deposited into their bank account does not automatically make the collaboration tax-free.
2. Are PR Packages Taxable if You Don't Have to Post About Them?
This is where things become more complicated.
Many brands send unsolicited PR packages to influencers without requiring a post, review or other service.
The tax treatment depends on the circumstances.
Scenario A: A brand sends a product in exchange for a post
You agree to promote a skincare product in return for receiving it.
This is generally a commercial exchange, and the value of the product may be assessable income.
Scenario B: A brand sends an unsolicited PR package
A beauty company sends you products without a contract, obligation to post or expectation of a specific service.
The treatment is less straightforward.
Relevant factors may include your relationship with the brand, whether the benefit arises from your income-producing activities and whether it forms part of your business arrangements.
An unsolicited gift is not automatically taxable simply because you are an influencer, but it is also not automatically tax-free.
Scenario C: A friend gives you a birthday present
A genuine personal birthday gift unrelated to your business is generally not assessable income.
The key distinction is whether the benefit is connected to your commercial activities or is genuinely personal.
3. Do Influencers Pay Tax on Free Holidays and Hotel Stays?
Potentially, yes.
Travel collaborations can be particularly valuable, which makes their tax treatment important.
Imagine a travel influencer receives:
Sponsored benefit | Value |
Return flights | $1,800 |
Hotel accommodation | $2,400 |
Tours and activities | $600 |
Total package | $4,800 |
In exchange, the influencer agrees to produce three Instagram Reels and a YouTube video.
If the $4,800 package represents the appropriate value of the services received as payment, that amount may be assessable income.
Can the influencer also claim the travel as a tax deduction?
Possibly, but not automatically.
The deduction depends on the business purpose, the nature of the expenses, the applicable non-cash benefit rules and any private component.
If the trip includes personal sightseeing, additional family members or private holiday activities, the relevant expenses may not be fully deductible.
A sponsored holiday does not automatically become a 100% deductible business trip.
4. Do OnlyFans Creators Pay Tax on Gifts From Subscribers?
This is another area where creators can become confused.
OnlyFans creators may receive money and benefits through:
Monthly subscriptions.
Tips.
Pay-per-view content.
Custom content requests.
Paid messages.
Live sessions.
Gifts or other benefits from subscribers.
Generally, payments received in connection with your content creation activities are assessable income, even when described as tips or gifts.
Example: A subscriber sends a $500 tip
An OnlyFans creator receives a $500 tip from a subscriber.
Although the subscriber calls it a gift, it is connected with the creator's income-producing activities.
The payment will generally be assessable income.
What if a subscriber purchases something from your wishlist?
The treatment depends on the circumstances.
If a subscriber provides a product as payment or reward for content or services, the value may be assessable.
A genuinely personal gift unrelated to income-producing activities may have a different treatment.
Creators should retain records showing what was received, its value and why it was provided.
5. How Much Tax Would an Influencer Pay on Gifted Products?
Receiving a taxable gift does not necessarily mean paying tax equal to the entire value of the product.
Instead, its assessable value is included in your income and taxed according to your circumstances, after taking account of allowable deductions.
Example: An influencer receives $5,000 in taxable gifted products
Assume an Australian resident sole trader has:
Description | Amount |
Cash income from brand deals | $45,000 |
Taxable value of gifted products | $5,000 |
Total assessable income | $50,000 |
Allowable business deductions | $10,000 |
Taxable business profit | $40,000 |
The influencer is generally taxed on the $40,000 business profit, together with any other taxable income.
If the influencer also has employment income, their total taxable income may place them in a higher tax bracket.
Important: The $5,000 of gifted products is not necessarily deductible merely because the products were received for free. Any deduction must satisfy the relevant tax rules.
6. Can Influencers Claim Makeup, Clothing and Beauty Treatments?
This is one of the most misunderstood areas of influencer taxation.
Just because you use something in a video does not automatically make it tax-deductible.
Makeup and skincare
Makeup purchased and used exclusively for genuine business content may be deductible, depending on the circumstances.
However, ordinary makeup and skincare used personally are generally private expenses.
Where an expense has both business and personal purposes, an appropriate apportionment may be required.
Clothing
Everyday clothing is generally private, even if it appears in your Instagram posts, TikTok videos or OnlyFans content.
Simply purchasing an outfit for a photoshoot does not automatically make it deductible.
Certain costumes or clothing that meet specific tax requirements may receive different treatment.
Hair, nails and beauty treatments
Ordinary grooming expenses are generally private.
This remains the case even where maintaining a particular appearance is important to your work.
Cameras, lighting and equipment
Equipment used to produce assessable content may be deductible, subject to the relevant depreciation, immediate deduction and private-use rules.
The key rule: An expense must satisfy the tax deduction requirements. Being an influencer does not turn personal spending into a business deduction.
7. Do You Need an ABN for Brand Deals and Gifted Collaborations?
Not every person who receives a free product or completes an occasional collaboration is necessarily carrying on a business.
However, an ABN may be appropriate where you are conducting organised, repeated commercial activities with an intention to make a profit.
Factors include:
Regular paid collaborations.
Ongoing content creation.
Business-like record keeping.
Negotiating commercial contracts.
Advertising your services.
Operating with an intention to make a profit.
There is no minimum income amount that automatically determines whether you are carrying on a business.
If your content creation activities constitute an enterprise, you may be entitled to an ABN even when your income is relatively small.
8. Do Gifted Products Count Towards the $75,000 GST Threshold?
They can, depending on the transaction.
For Australian businesses, GST registration is generally compulsory when GST turnover reaches, or is expected to reach, $75,000, subject to the relevant rules.
If you provide taxable promotional services in exchange for products, this can constitute a non-monetary transaction for GST purposes.
For example, a GST-registered influencer who provides advertising services in exchange for products may need to account for GST on the taxable supply.
However, not every gift or benefit is included in GST turnover.
The treatment depends on whether there is a relevant supply, the consideration provided and the applicable GST rules.
Important: GST turnover is not necessarily the same as total income reported in your income tax return.
9. What Records Should Influencers Keep?
Good record keeping is essential, particularly when income is received in forms other than money.
We recommend maintaining records of:
Brand collaboration agreements.
Invoices and payment confirmations.
Products received as payment.
The date and value of non-cash benefits.
Sponsored travel arrangements.
Platform income statements.
OnlyFans and other creator platform reports.
Business expense receipts.
Business and private-use calculations.
Foreign currency payments.
Where products are received without a formal agreement, retain the correspondence showing whether a promotional obligation existed.
This can be particularly important when determining whether an unsolicited PR package is taxable.
10. What Happens if You Haven't Declared Gifted Products or Brand Income?
If you have previously omitted assessable income from your tax return, you may need to correct the information.
The appropriate action depends on the circumstances and the relevant income year.
In some cases, an amendment to a previously lodged tax return may be required.
Where additional tax is payable, interest or penalties may apply.
It is generally better to identify and correct reporting errors rather than allow them to continue across multiple financial years.
An accountant experienced with content creators can help review your platform statements, collaboration income and expenses to determine whether amendments are necessary.
Frequently Asked Questions
Are free PR packages taxable in Australia?
They may be. Products received as payment for promotional services are generally assessable. Unsolicited gifts require consideration of the actual circumstances.
Do influencers pay tax on gifted clothing?
Clothing received as payment for promotional services may be assessable income, even if no cash is paid.
Is a free hotel stay taxable?
It may be taxable where accommodation is provided in exchange for promotional content or other business services.
Do OnlyFans creators pay tax on tips?
Generally, yes. Tips received in connection with content creation activities are usually assessable income.
Can I claim clothing I wear in OnlyFans content?
Ordinary clothing is generally private and not deductible merely because it appears in content. Specialised costumes may have different treatment depending on the facts.
Do I need an ABN if I only receive gifted products?
Not necessarily. Whether you need or are entitled to an ABN depends on whether you are carrying on an enterprise, not simply whether you receive products.
Can the ATO tax me if I never receive cash?
Yes. Certain non-cash benefits received in connection with income-producing activities can be assessable.
Need an Accountant Who Understands Influencer and OnlyFans Tax?
Influencer taxation is not always straightforward.
Between brand collaborations, gifted products, platform income, international payments and deductible expenses, it can be difficult to know what should be declared and what can legitimately be claimed.
At Dolman Bateman Chartered Accountants, we assist Australian content creators, influencers, YouTubers, TikTokers and OnlyFans creators with their taxation and accounting requirements.
Our services include:
Influencer and OnlyFans tax returns.
Brand collaboration and gifted product tax advice.
ABN and GST registration.
Business Activity Statements.
Business structure advice.
Tax planning.
Accounting for international platform income.
Reviewing allowable business deductions.
Not sure whether your brand deals, gifted products or OnlyFans income have been reported correctly?
Book a complimentary initial meeting with Dolman Bateman to discuss your accounting and tax requirements.
Disclaimer: This article provides general information only and does not constitute personal taxation or financial advice. Tax outcomes depend on the nature of each transaction and your individual circumstances.
