ATO influences content creators to register for GST
The Australian Taxation Office (ATO) urges content creators, social media influencers and brand ambassadors to check if they need to register for goods and services tax (GST).
ATO Assistant Commissioner Andrea Wood said those who are earning money or receiving gifts may not realise they have GST obligations.
‘Whether you’re a culinary hit on social media vlogging recipes or a brand ambassador reviewing and promoting products, if you’re reaping the rewards and making income from your activities, you may have GST obligations that you need to comply with’ Ms Wood said.
Content creators, social media influencers and brand ambassadors need to register for GST if their GST turnover is $75,000 or more in a 12-month period.
The ATO encourages them to check if they reach the GST registration threshold and when working out their GST turnover, they need to include both taxable and GST-free sales. This includes monetary and non-monetary payments they receive, such as products or services, gifts, clothing, or makeup.
‘If you have subscribers from all over the world who are enjoying your content, payments you get from outside Australia will be GST-free, and those within Australia will be taxable sales, so it’s important to check that you’re meeting your GST obligations’ Ms Wood said.
‘Remember, if you need help you can seek advice from a registered tax, a BAS agent or visit the ATO’s website ato.gov.au/registeringforGST.’
Case study: Content creator with an international audience
So, let’s say for example, a content creator posted content over a 12-month period and they’ve received:
- $45,000 from Australian subscriptions - taxable sales
- $50,000 from overseas subscriptions - GST-free sales
- $5,000 worth of goods from Australian businesses - taxable sales
- $15,000 from their share of advertising revenue or direct advertising in their content from Australian businesses - taxable sales
Their GST turnover is $115,000, so they need to register for GST as they’ve exceeded the GST threshold. Calculating the GST amount on their taxable sales of $65,000 (by dividing it by 11) comes to $5,909 (rounded down). If they’re unable to claim GST credits to reduce their taxable sales, $5,909 is the GST amount they need to report and pay to the ATO when they lodge their business activity statement (BAS).
