From Posts to Profits: Social Media & Taxes Explained
- Arnold Shields
- Mar 2
- 2 min read
Updated: May 9
Social media is more than just a platform for connection. It's a thriving marketplace where influencers, content creators, and entrepreneurs turn their passion into profit. However, many overlook a crucial aspect of monetising social media. TAXES!
If you earn money through platforms like Instagram, TikTok, YouTube, Twitch, or OnlyFans, the Australian Taxation Office (ATO) considers this taxable income. Whether through ad revenue, sponsorships, or fan subscriptions, these earnings must be reported. Failure to do so could lead to hefty penalties, which can be easily avoided with proper financial planning.
Key Tax Considerations:
Declaring Income: All earnings, including brand deals and affiliate marketing, must be declared. The ATO categorises social media earnings as assessable income, meaning it should be included in your tax return.
Deductions: Equipment, software, internet costs, and home office expenses can often be claimed. Additionally, if you attend industry-related events or workshops, these may also be tax-deductible.
GST Registration: If your revenue exceeds $75,000 (including overseas payments) annually, you must register for GST. This applies even if you’re a sole trader. Get in contact with us to go over your GST requirements.
Superannuation Contributions: Unlike traditional employment, self-employed creators must manage their own super contributions to secure their financial future.
Common Tax Pitfalls to Avoid:
Ignoring Your Tax Obligations – Many creators mistakenly assume social media income is a side hustle and doesn’t require reporting. In reality, any income earned should be declared.
Not Keeping Receipts – Proper documentation is essential to claim deductions. Keep digital and physical copies of invoices, receipts, and transaction records.
Mixing Personal and Business Finances – Open a separate business bank account to track income and expenses efficiently.
Navigating tax laws can be tricky, but we can help you at Dolman Bateman Chartered Accountants. We specialise in social media accounting, ensuring compliance while maximising deductions. Make an appointment with our team and we can help you keep your finances in check and stress-free.
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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.
