Free Products Aren’t Free for Influencers: How to Report Sponsored Gifts to the ATO
- Jenine L.
- 22 hours ago
- 3 min read
It’s one of the biggest misconceptions among influencers:
“If I didn’t get paid in cash, I don’t need to declare it.”
Wrong.
Whether you’re receiving skincare bundles, clothing, tech gadgets, or event tickets, if it’s in exchange for content, it’s considered taxable income.
The ATO is clear: barter and non-cash payments are assessable income, and yes, they want their share.
What Counts as a Taxable Sponsored Gift?
You must declare the market value of any goods or services received if:
You agree to create or post content in return.
You tag a brand or promote a product as part of an arrangement.
You receive the product because of your platform or following.
This includes:
PR packages with agreed posting obligations
Event invites with sponsored tags
Free hotel stays or meals with required social media exposure
Affiliate gift boxes or brand partnerships with product-based compensation
What Isn’t Taxable?
Not all freebies need to be reported. If a brand sends something with no obligation and you didn’t ask, agree to, or act in exchange, it may be considered a true gift.
However, once you use, promote, or feature the product publicly, the ATO may consider it part of your business.
When in doubt, assume it’s income.
How to Value Sponsored Goods and PR Packages
Use the retail market value (AUD) at the time you receive the product. This is what a customer would reasonably pay to buy the item new.
Example:
You receive a designer handbag worth $1,200 for a post → Declare $1,200 in income.
A hotel offers a 3-night stay valued at $900 in exchange for a Reel and stories → Declare $900.
A brand gives you $500 worth of skincare and asks for a TikTok and 3 Instagram posts → Declare $500.
You don’t need to pay tax on the object, but on its value, as though you’d been paid in cash.
How to Report These Gifts in Your Tax Return
If you're carrying on a business as an influencer (which includes most content creators), this income should be declared:
As business income if you have an ABN
On your individual tax return in the income section if you're a sole trader
Tip: You can still claim deductions for any costs associated with producing the content (e.g. editing software, equipment, home office use).
Record-Keeping Is Key
You should:
Keep a log of all sponsored goods received
Note the market value and the brand arrangement
Screenshot any emails or briefs confirming expectations
Retain receipts or links to product listings for valuation
ATO audits are increasingly relying on social media content as evidence, so keep your records clean and your captions accurate.
Quick Summary
Scenario | Taxable? | Reported Value |
Free product in exchange for a post | ✅ Yes | Retail value of product |
PR drop with no requirement to post | ❌ Possibly no (if unsolicited) | N/A |
Hotel stay or event access with exposure requirement | ✅ Yes | Market value of benefit |
Commission on affiliate sales | ✅ Yes | Declared as business income |
Stay Ahead of the ATO, Don’t Let Freebies Cost You Later
At Dolman Bateman, we work with social media influencers and content creators across Australia to ensure they’re compliant, organised, and never caught off guard at tax time.
📞 Book a strategy session today and get clarity on what you really need to declare.
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.
