If a brand sends you a box of skincare, a restaurant hosts your dinner in return for a post, or an affiliate link pays a few hundred dollars a month, the Australian Taxation Office (ATO) wants you to know that some of it may be income. On 22 October 2026 the ATO published a media release aimed at content creators and influencers, alongside a new industry guide and a draft ruling on when an individual is carrying on a business. The draft ruling, TR 2026/D2, is open for comment until 27 November 2026, and the ATO proposes it will apply to past years as well as future ones.
The short answer
The ATO sorts content creation into three buckets. If it is a business, everything you receive for it is income, including free products and experiences at their market value, and you may need an ABN and GST registration. If it is a side activity that earns money but is not a business, the payments are generally still taxable. Only a genuine hobby, done for enjoyment with any rewards incidental, is generally outside the tax system. A small following does not make it a hobby. In the ATO’s words, “Free doesn’t mean tax‑free.”
Business, side income or hobby
| What your content activity is | Is what you receive taxable? | What else applies |
|---|---|---|
| A business | Yes, including non-cash amounts such as gifted products and trips | Claim eligible deductions, keep records, register for an ABN, and register for GST once you reach the threshold |
| Income-producing, but not a business | Generally yes, including non-cash amounts | Claim eligible deductions and keep records. ABN and GST registration do not apply |
| A hobby or recreation | Generally no | Related expenses are not deductible |
Source: ATO, Are you in the business of content creation? (QC 108108), last updated 7 October 2026. The guide covers individuals and sole traders only, not companies, partnerships or trusts.
What the ATO counts as creator income
For a creator in business, the ATO’s list of income to declare is wider than what lands in your bank account:
- platform advertising revenue, from YouTube, TikTok, Twitch and similar
- sponsorships, brand deals and fees for appearing at events or modelling for brands
- affiliate commissions
- subscriptions, tips and donations
- products, services and experiences given to you in return for promotion, at market value
- foreign income, for example ad revenue paid by an overseas platform entity
The ATO’s own worked example shows how quickly non-cash income adds up. A lifestyle creator called Bella, who posts several times a week and pitches brands for paid work, is invited to a Maldives resort. She gets no cash, only business class flights the ATO values at $8,000 and accommodation, meals and experiences valued at $5,000. The ATO says she would generally need to include $13,000 in her assessable income for that one campaign.
The same guide has a second example worth reading if you think of yourself as a casual poster. Sofia writes an occasional travel blog for friends and family and is not in business. A hotel pays her $500 once to feature it. The ATO’s conclusion is that the $500 is still assessable income, even though she is not carrying on a business.
What this looks like in Melbourne and Brisbane
Plenty of creators in Melbourne and Brisbane do not think of themselves as influencers at all. They review restaurants on RedNote, film unboxings on Instagram, run a Douyin or TikTok account about property or study in Australia, or post skincare routines with a discount code in the caption. The ATO’s examples translate directly:
- The hosted dinner. Say a restaurant in Box Hill or Sunnybank hosts you and a friend for a tasting menu worth $180 in exchange for a post and two stories. If your account is run as a business, that $180 is generally income at market value. These figures are an illustration, not an ATO example.
- The PR box. Products sent to you because of your content, and kept, generally count at market value when you are in business. Keep the brand’s email or brief so you can show what was agreed.
- The discount code. Commission from an affiliate or referral code is income in the year you earn it, even if the platform pays it in a lump sum later.
- Live stream gifts. Tips, virtual gifts and donations that convert to money are on the ATO’s list.
When the ATO says you are in business
There is no single test and no follower count that decides it. The ATO weighs these together, and the overall impression is what counts:
- Commercial purpose. You are aiming to earn through ads, sponsorships, subscriptions or affiliate links, and you negotiate with brands or sign contracts.
- More than an intention. You are actually producing, promoting and pitching, not just planning to.
- Profit motive and prospects. You may not be profitable yet, but you have a genuine plan to earn from the content.
- Regularity. You post on a schedule, run series and plan campaigns.
- Business-like organisation. You keep a content calendar, track performance, and keep records of income and expenses.
- Size and scale. Several platforms, meaningful engagement, or help from an editor or talent manager. The ATO also says a small following or modest revenue does not automatically make it a hobby.
- Beyond recreation. Something that started as a hobby becomes a business once the factors above are present.
Your business starts when you move beyond planning and begin creating content with the intention of earning from it. It ends when you stop, but income that keeps arriving from old videos after you stop is still taxable.
If you are in business: the checklist
- ABN. Register for one.
- GST. Register once your turnover is $75,000 or more in a 12-month period. Payments from foreign advertising networks are GST-free but still count towards that $75,000, so a creator paid mostly by an overseas platform can reach the threshold without charging GST on much of it. Once registered, local brand deals and sponsorships are generally taxable sales and you lodge BAS.
- Deductions, apportioned. Equipment, editing software and products used to make content can be deductible. The ATO’s example: makeup used only in tutorials is deductible, and makeup also used in your personal life is only partly deductible.
- PAYG instalments. If creator income is pushing up your tax bill, instalments spread the payments through the year. Our PAYG instalments guide covers how they work.
- Records. Keep records of every transaction for at least 5 years, including brand briefs and the value of gifted items.
- Super. As a sole trader you are not required to pay yourself super, but the ATO suggests considering contributions.
How the ATO finds undeclared creator income
ATO Assistant Commissioner Anita Challen said in the 22 October release that creators are often caught off guard when the ATO finds undeclared income through data matching with platforms, its lifestyle assets programs, or community tip-offs, and that this can lead to an unexpected audit. If you sell or earn through other online platforms too, our earlier piece on side hustle tax and ATO platform data matching sets out what the ATO already receives.
The draft ruling and why 27 November matters
TR 2026/D2, Income tax: carrying on a business by an individual, was issued on 16 October 2026. It covers all individuals, not only creators, and the ATO says it addresses emerging income-earning activities. Comments are due by 27 November 2026. Two points in the draft are worth knowing:
- When final, it is proposed to apply both before and after its date of issue. In practice, the ATO’s view could be applied to income years already lodged.
- It sits alongside the existing ruling on primary production and other business tests, TR 97/11, rather than replacing it.
If you are a creator, or advise creators, and the draft does not fit how your work actually runs, the consultation is the time to say so. For most people the more useful step is to look at what you have already lodged.
What we would do before the end of November
- List everything since 1 July 2025. Every brand payment, affiliate payout, platform payment and gifted item or trip, with an estimate of market value and the brief or email that came with it.
- Check your 2025-26 return. If it was lodged without these amounts and you were in business or earning from the content, an amendment now is better than waiting for a data matching letter.
- Decide which bucket you are in. Use the seven factors above, honestly. If you are in business, get an ABN and start tracking turnover for GST, counting overseas ad revenue.
- Separate the money. A separate bank account and a simple spreadsheet of gifted items will make next year’s return and any ATO question much easier.
- Think about the structure. If the account is growing into a real business, our sole trader vs company guide explains when each makes sense.
Frequently asked questions
Do I have to pay tax on free products from brands in Australia?
If you are carrying on a business as a content creator, products, services and experiences you receive in exchange for promotion are generally income at their market value. If you are earning from content but not in business, amounts received for promotional content are generally still assessable. Only a genuine hobby is generally outside the rules.
How many followers do you need before the ATO treats you as a business?
There is no follower threshold. The ATO looks at commercial purpose, profit intention, regularity, organisation, and size and scale together. Its guide says a small following or modest revenue does not automatically mean the activity is a hobby.
Do content creators need to register for GST?
Only if you are carrying on a business and your turnover is $75,000 or more in a 12-month period. Payments from foreign advertising networks are GST-free but count towards the $75,000. Once registered, local brand deals and sponsorships are generally taxable sales and you lodge BAS.
What is TR 2026/D2?
It is the ATO’s draft taxation ruling Income tax: carrying on a business by an individual, issued 16 October 2026. Comments are due by 27 November 2026, and when final it is proposed to apply both before and after its date of issue.
Can content creators claim deductions?
Yes, if the activity is a business or otherwise earns income, expenses incurred in producing the content can be deductible. Items also used privately, such as a phone or makeup, have to be apportioned so only the work share is claimed. Hobby expenses are not deductible.
Talk it through
If you are not sure which bucket your account falls into, send us a list of what you received since 1 July 2025 and how often you post. We will tell you how the ATO is likely to see it, whether your 2025-26 return needs an amendment, and whether you need an ABN or GST registration now.
At Wiselink, work is split by function, and important returns are reviewed by a senior accountant or the principal before lodgment. If the creator work grows into a business, your BAS, bookkeeping and tax return are handled in the same practice.
Book a 20 minute call, or phone us: Melbourne 03 9600 0803 | Brisbane 07 3188 8081. Sole trader and company tax returns, BAS and GST, and help with ATO letters and audits are listed on our accounting and tax page.
Credentials: CPA, Registered Tax Agent, ASIC Registered Agent, NTAA member, Xero, MYOB and QuickBooks partner, in practice since 2013. Our registration can be checked on the TPB public register. We work in English and Mandarin.
Melbourne Camberwell (1381 Toorak Rd, Camberwell VIC 3124) · Brisbane Eight Mile Plains (3 Clunies Ross Court, Eight Mile Plains QLD 4113)
Sources
- ATO media release, Creating content? Tax consequences may be your next ‘follower’, 22 October 2026 (QC 108214).
- ATO, Are you in the business of content creation? (QC 108108), last updated 7 October 2026.
- ATO, TR 2026/D2 Income tax: carrying on a business by an individual, issued 16 October 2026, comments due 27 November 2026.
- ATO, Content, clicks, income and tax course, Essentials to strengthen your small business.
All ATO pages retrieved 10 November 2026. The hosted dinner figures are an illustration, not an ATO example. This article is general information and does not take your circumstances into account. Liability limited by a scheme approved under Professional Standards Legislation.
Reviewed by Lily Zhang, CPA and registered tax agent, founder of Wiselink Accountants. Wiselink has worked with small businesses and individual taxpayers in Melbourne and Brisbane, in English and Chinese, since 2013.
