Making money from your posts? Ad money, a brand deal, tips from fans or a box of free products on the doorstep can all count as income. In October the ATO put out new guidance for content creators, along with a draft ruling on when an individual is carrying on a business. Comments on the draft close on 27 November 2026. Mia and Leo are joined by tax strategist Harvey Green, who starts with three buckets: a business, an activity that earns you income without being a business, and a genuine hobby. A genuine hobby's takings generally aren't taxable, but you can't claim the costs either. In the middle bucket, what you earn generally still goes in your return and you can claim the eligible costs of earning it, but the business registrations, like an ABN and GST, don't apply. In one ATO example, a travel blogger who isn't in business takes a one-off $500 payment from a hotel, and that $500 is still assessable income. So when is it a business? There's no single test and no magic dollar figure. The ATO weighs things like a commercial purpose, whether you're out to make a profit and realistically could, how regular and organised it is, and the size and scale, then goes on the overall impression. A small following or modest income doesn't automatically make it a hobby, and a day job doesn't stop it being a business. Nor does enjoying it. In 2005 the High Court found a Queensland police officer's athletics was a business in the tax year in question, largely because sponsors were paying her to promote them. Starting to make money from a channel is when the ATO says you must reassess, but it isn't an automatic switch. Gifted something because of your content? The ATO says it generally needs to be declared at its market value. As the ATO put it, free doesn't mean tax free. In its example, a lifestyle creator who's in business is flown to a resort to make content for it, with no cash at all. With the flights at $8,000 and the accommodation and extras at $5,000, she'd generally need to include $13,000 as income, and any tax on it has to come from somewhere else. So write down what comes in, who sent it and what it's worth. If you're in business, you may be able to claim what you spend producing content, but anything you also use privately, like makeup or a phone, has to be apportioned. A loss only comes off your wages in the same year if you meet the non-commercial loss rules. Otherwise it's deferred to a later year. If your channel is a business, the ATO's guide says to register for an ABN, and once your turnover reaches $75,000 over 12 months, or is likely to, you have 21 days to register for GST. That's turnover, not profit. Ad payments from overseas networks are generally GST free but still count towards the $75,000, and if the platform paying you is an Australian entity, the ATO's own example treats your sale to it as a taxable sale. Keep your records for at least five years. None of this is new law. The guide sets out how the ATO sees the law applying, and the ruling is still a draft that won't take effect until it's finalised. When it is, the ATO proposes it apply to past years as well as future ones. The ATO's free course, Content, clicks, income and tax, takes about 45 minutes. Already an Aevum Accounting client? If your channel has started earning, bring it to your next catch-up and we'll go through it. Not a client yet? Visit aevumaccounting.com.au to book a session. Shoutout: A massive thank you to Trenton for the fantastic 5-star review! Important Disclaimer: The information shared in this episode and description is for general informational purposes only and does not constitute specific tax or financial advice. Everyone's situation is unique, and tax laws are complex. For personalized advice tailored to your specific situation, we always recommend consulting with a qualified professional at Aevum Accounting.
