Let’s talk about tax returns for influencers today. Blogging has been a growing industry over the last couple of decades and now we are moving into the influx of the influencer industry that is especially prevalent on the social medial platform Instagram.
With the rise of social media over the last decade the blogging/influencer industry has exploded and many people are finding that this has become their full time job as opposed to a side hustle or hobby. How does this work with the Australian Taxation Office?
There are a range of deductions that you may be eligible for in your tax return, but there are also a lot of things that are touted on social media as being claimable that aren’t.
When it comes to making a deduction you need to bear in mind the ATO’s 3 golden rules
- You must have spent the money yourself & weren’t reimbursed by your organization.
- The deduction must directly relate to earning your income
- You must have a record to prove it
So What Can You Claim as an Influencer or Blogger?
As long as you bear in mind the 3 golden rules above there are a number of things that can be claimed, the most common deductions are:
- Internet Costs
- Computer Equipment
- Communication Related Expenses
- Advertising, Design & Promotions
- Office Equipment
- Office Expenses
- Cost of Accountant
There are a number of other expenses that can also be claimed, but also there are lots that although would seem to fit the golden rules actually don’t. As an example a gym membership cannot be claimed as a work-related expense by health and fitness influencers; food bloggers cannot claim food and travel expenses cannot be claimed by a travel blogger.
It really does pay to see a qualified accountant to make sure that you claim everything you are entitled to without breaking any of the rules. As a fairly new profession the ATO has very little guidance surrounding tax returns for influencers on its website which is why there are misleading posts found on social media claiming things such as ‘turn your expenses into a deduction’.
A big problem that many influencers face is that a lot of the companies that are paying them are based overseas and so the information they receive about things they can claim are not correct for Australian taxation law.
If you are unsure whether you’re claiming everything you are entitled to or are worried that you’re over claiming then using a qualified accountant such as Frederiks Accountants is the best move you can make. Simply phone us or email us to make an appointment with one of our friendly and experienced accountants.
