A new study has found that 86% of young Aussies would like to have a full-time career as a social media influencer. This career certainly has its upside, however often newcomers struggle to understand their tax obligations. It is relatively a new profession, and there is very little guidance provided from the Australian Taxation Office (ATO). So, here’s our simple guide for you to navigate your tax compliance.

Understand the differences between your hobbies and your business as an influencer?

Travel, fitness, beauty, fashion and food are the top five social media influencer categories. If you are operating in one of these categories, consider these:

• Are you doing it for leisure activities or it is a form of business?
• Do you send invoice to your clients?
• Are you making money from this activity consistently?
• Do you incur any expenses directly related to this activity, and you got proper documentation to support this claim?

If it is satisfied that you are running a business as a social media influencer, you will be forced to pay tax on income made through sponsorships and endorsements including non-cash benefits you received during performing these activities.

It’s not all bad news, you will also be able to claim certain expenses that are related to your business, i.e.

• advertising and promotion expenses
• travel expenses
• office expenses / home office expenses
• computer equipment and internet cost
• communications-related expenses
• office supplies and stationery
• you will also be able to claim deductions for certain assets cost up to $30,000.

However, it is also important to note that you will not be able claim certain travel expenses, meal expenses, gym membership expenses. The ATO will almost certainly say no to all of these because despite the costs being incurred in your business activity, they’re mainly private or domestic in nature.

As experienced tax accountants, we can help you to comply with your tax matters. Please contact us on 1300 (TAXCOR) 829 267 for an obligation free consultation.