Lessons from Aussie OnlyFans Creators hit with $86,000 tax bill from the ATO
- Arnold Shields
- Aug 14, 2023
- 2 min read
Updated: May 14
Tax season often stirs anxiety, but for some Australian content creators, it’s become an outright shock. Recently, several OnlyFans creators made headlines after receiving unexpectedly large tax bills, prompting concern, and confusion, among their audiences. These experiences are more than viral moments; they offer powerful financial lessons for every self-employed individual.
When Tax Reality Hits Hard
Popular creator Tasha Paige shared news of an eye-watering $86,000 tax bill. Likewise, Kaila Smith faced a $15,000 debt to the Australian Taxation Office (ATO). While both women had accountants, their situations underline a vital message: engaging an accountant is only the first step, ongoing tax planning is what truly matters.
Why the Right Advice Matters
A qualified accountant doesn’t just crunch numbers. They help forecast tax liabilities, identify deductions, and create strategies to smooth out tax payments. Without this foresight, even high earners can find themselves blindsided by a hefty tax debt.
Don’t Wait, Use PAYG Instalments
One smart move to manage your tax obligations? Pay As You Go (PAYG) instalments. These quarterly payments towards your expected annual tax can prevent the financial whiplash of a single end-of-year bill.
Self-employed individuals and creators with variable income can particularly benefit from PAYG. It’s not just a compliance tool, it’s peace of mind.
The Hidden Trap of LMITO Ending
Adding to the shock, the Low and Middle Income Tax Offset (LMITO) quietly ended. This temporary benefit, once delivering up to $1,500 in tax offsets, softened the blow for many. Its expiry has left a hole in many refunds, turning anticipated windfalls into unexpected debts.
Why Not Getting a Refund Can Be a Good Thing
Think a big tax refund is a win? Think again. In reality, it means you overpaid throughout the year, effectively giving the government an interest-free loan. A well-structured tax plan aims to pay just the right amount, keeping more of your money in your pocket all year round.
Proactive Tax Planning Is Essential
The stories of Tasha Paige and Kaila Smith aren’t just cautionary tales, they’re reminders of the importance of proactive financial management. Whether you're an OnlyFans creator, influencer, or freelance professional, staying ahead of your tax obligations is crucial.
Key Tips:
Engage a proactive accountant who understands your industry.
Set up PAYG instalments if your income is regular or growing.
Review your deductions and track your business expenses.
Stay informed about tax changes like the end of LMITO.
Tax doesn’t need to be a source of stress. With professional guidance and proper planning, you can protect your income, stay compliant, and avoid end-of-year tax surprises.
Need help managing your OnlyFans or influencer income?
Contact Dolman Bateman today. We specialise in helping creators get tax-smart.
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.
