Tax Return:: Tax Return for Social Media Influencers and Bloggers

Hello, this is your tax and super specialist, P&C Tax Professionals.

With YouTube and various other social media platforms becoming an increasingly popular method to generate additional income, it is important that you report your earnings and relevant expenses accurately. This applies to all bloggers, social media influencers and YouTubers.

<Hobby vs Business>

Similar to our previous blog post on online selling, in order to determine if your channel or account is more of a hobby or a business, ask yourself the following questions:

> Am I making a profit from my channel/account or have intentions on doing so later on?

> Is the activity I’m carrying out done on a regular basis in order to expand my following and thus grow my channel?

> Am I keeping and maintaining accounting records for my activity in an organised and planned manner?

> Am I purchasing items for the improvement of my channel/account and do I intend to claim a tax deduction for this?

If you answered “Yes” to any of these questions, it is highly likely that the ATO will classify your activity as a business. Which unfortunately means that you would have to pay tax on all the income you have earned as a result of running your channel and/or account.

To help you with meeting your tax obligations, please make reference to the table below showing the some of the main differences between running your channel and/or account as a hobby vs a business.

Major differences between a Hobby vs a Business

For more details, please head to the Australian Government – Business website: https://business.gov.au/planning/new-businesses/difference-between-a-business-and-a-hobby

<Applying for your ABN and GST>

If you would like to claim tax deductions for your YouTube, blogging or influencer activity, you would no doubt have to apply for an ABN.

On the GST side of things, once you have received your ABN and you start earning more $75,000 in a given financial year, you would also have to register for Goods and Services Tax (GST).

<Tax Deductions>

In terms of the expenses that are tax deductible, if the item(s) you have paid for during the financial year directly relates to your job as a YouTuber, blogger or social media influencer, you can claim them as deductions on your tax return. However, please keep in mind that if you were reimbursed by a specific vendor or a brand, such expenses would not be eligible to claim as a tax deduction.

As always, you must keep records of the expense you have paid for which can be in the form of a photo of your tax invoice receipt (with the purchase date and price clearly shown).

Some of the deductible expenses for YouTubers, bloggers or social media influencers commonly includes the cost of:

> Purchasing a computer

> Purchasing a digital camera and/or related equipment to create your content

> Purchasing home office equipment (e.g., furniture)

> Internet bills (work-related portion only)

> Purchasing communication tools (e.g., phones and laptops for work)

> Contractor expenses (e.g., outsourced advertisers or designers)

> Travel expenses – if you were required to stay overnight and you paid for your own food, flight and accommodation expenses for work purposes

> Self-education expenses (e.g., editing, video producing or writing courses)

As with all other occupations, it is crucial that you only deduct the work-related percentage of the expense for which you are claiming for.

I hope today’s blog post have been useful in helping you to prepare for your annual tax return. If you have any concerns or queries regarding your tax return or if you would like to apply for your ABN through P&C Tax Professionals, please do not hesitate to contact us through our Facebook Page (P&C Tax Professionals – Australia) or email us at pntax@naver.com.

Thank you and bye for now!