Australia warns creators over undeclared income as tax scrutiny grows

Australian creators must declare income from their work or risk an audit, the country’s tax authority has warned, as it looks to crack down on unreported earnings.

The Australian Taxation Office (ATO) said creators may not realise they are running a business for tax purposes, particularly when content creation starts as a hobby or side hustle before becoming a source of income.

“If you’re creating content and getting paid, whether in cash, products or experiences, you’re probably in business for tax purposes,” ATO Assistant Commissioner Anita Challen said in a statement.

“We see creators grow audiences fast, but their record keeping and tax understanding doesn’t always keep up. That’s what we’re trying to change.”

The ATO said it can identify income that has not been reported through data matching with platforms and community tip-offs, potentially leading to an audit.

Its warning also covers non-cash deals. Products, services or experiences received in exchange for promotion generally need to be reported at their market value.

“Free doesn’t mean tax-free. If it’s part of how you earn, it needs to be recorded,” Challen said.

The ATO has also rolled out new resources specifically for content creators, including an online course and guidance on when their work is considered a business. A separate draft tax ruling on how individuals are classified as running a business includes content creation as a case study, with consultation open until November 27.