The Business of Social Media: Earnings, Taxes & Accounting
- Arnold Shields
- Mar 18
- 3 min read
Updated: May 9
As a content creator, you might not see yourself as a business owner, but legally, you probably are. If you're earning income through sponsored content, affiliate deals, brand partnerships, or YouTube AdSense, then you're running a business in the eyes of the Australian Taxation Office (ATO). That means tax compliance is your responsibility.
Understanding your tax obligations is key to sustaining your financial success and avoiding penalties that could derail your growth.
Key Areas You Need to Understand
1. Income Tax Obligations
Any income you earn from content creation must be declared. Depending on your income level and how you're structured, this could mean personal tax as a sole trader or corporate tax if you form a company. As your income grows, setting up a company may offer more flexibility, liability protection, and tax-saving opportunities.
2. ABN and Business Structure
You’ll need an Australian Business Number (ABN) to invoice clients, claim expenses, and operate legitimately. Choosing between being a sole trader, partnership, or company depends on your income level, risk appetite, and long-term goals.
Sole trader: Easy to set up but taxed at personal rates.
Company: More paperwork but may provide tax efficiencies and asset protection.
3. Superannuation Contributions
As a self-employed individual, you must manage your own super. This isn’t optional, it’s crucial for building long-term wealth. Consider making regular contributions, and speak to an adviser about how to optimise these for tax deductions.
4. Quarterly BAS Lodgements
If you earn over $75,000 annually, you're required to register for GST. This means submitting a Business Activity Statement (BAS) every quarter to the ATO. Even if your earnings fluctuate, consistent reporting is essential to avoid fines.
Managing Your Finances Like a Business
Budget for Your Tax Bill
Set aside 30–40% of your income for tax and super from the start. Don't wait until tax time—make it part of your monthly cash flow strategy.
Use Cloud Accounting Tools
Platforms like Xero make it easy to track expenses, generate invoices, and reconcile accounts. You’ll need accurate records to claim all your eligible deductions.
Hire a Specialist Accountant
Tax law is complex—especially if you're juggling multiple income streams, business expenses, and GST. Working with an accountant (like us!) ensures you remain compliant and aren’t leaving money on the table.
Let Dolman Bateman Help You Grow
At Dolman Bateman Chartered Accountants, we specialise in helping content creators, influencers, and online entrepreneurs manage their finances, set up the right structures, and stay ahead of their tax obligations.
Whether you're just starting out or scaling fast, we'll help you take control of your business and build long-term financial success.
📩 Contact us today to make sure your content creation career is financially secure.
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.
