Posting make-up tutorials to social media? Writing for a blog or streaming gaming for others to see?
Congratulations, you’re a content creator!
If you start making money from your online content, you’ll have income to declare, and you’ll need to consider whether you’re in business. If you are, or you want to start your own business, it’s important you know what income you need to report, the deductions you can claim, and what registrations you may need.
The income you receive could be:
- money for advertising or appearance fees
- goods like a new gaming console, clothes, or make-up
- from Australia, or overseas.
Some of your supporters may purchase your merchandise or pay a subscription fee to access your content. They may send tips or gratuities (often called gifts). All of these are considered income and should be declared.
There are some important things to think about if you’re a content creator.
Can you afford to accept the gifts? A new handbag or a free holiday may be enticing, but because it’s regarded as income, you’ll need to pay tax on it.
Consider how the income you earn will affect your other amounts payable. Sole trader income counts towards your total assessable income, so it could impact your study loans or Medicare calculation.
If you’re in business, and you have a GST turnover of $75,000 or more, you’ll need to register for GST.
Make sure you keep your cash flow in mind when it comes to accepting goods or services – ask your tax professional like the crew at Paris Financial or get help with the cash flow coaching kit.
For more help, reach out to the team at Cotchy today!
Source: ATO Newsroom