Australian Taxation Office cracking down on influencers undeclared gifts
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Urgent tax office warning issued to Australian influencers amid crackdown on undeclared luxury gifts
- Australian Taxation Office to crack down on non-monetary income from influencers
- Australian influencers often receive goods instead of paying for ads
- The ATO said ‘gifts’ given by companies as payment are still considered income.
The Australian Tax Office has put Australian influencers on notice as a crackdown on undeclared luxury gifts gets underway.
The ATO said it will use a sophisticated suite of “data matching” technologies to weed out influencers who don’t report endorsements as part of their income, which can include donations and vacations.
A spokesperson has warned that the technology will be used to see if Insta-famous celebrities are admitting to their ‘million-dollar’ lifestyles.
‘If you are paid in kind, such as goods or other benefits, for example being able to keep an item or outfit used in a publication or receiving a gift, you are subject to the same income tax and GST treatment as normal. cash or credit payments’, the ATO told the daily telegraph.
The Australian Revenue Office announced a new crackdown on luxury lifestyle influencer (Sydney-based influencer and jewelery designer Emma Pillemer pictured)
Hundreds of Australian-based influencers share content with ‘gifted’ hashtags for posts they get paid for through giveaways (pictured left Jono Castano, right Chantelle Stanton)
All income generated by influencers, even those who use their platform as a hobby, not a business, is taxable under Australian law.
‘Gifts’ given by companies in lieu of cash in exchange for advertising are also considered revenue.
However, gifts given by businesses without the expectation of services (for example, public relations packages) are not considered income.
Australian law requires creators on social media to declare when a post is sponsored, but glitzy events and lavish giveaways are often placed in a “grey area.”
Hundreds of influencers in Australia, including big names Jade Tuncdoruk, Olivia Molly Rogers, Bec Judd, Jono Castano, Rozalia Russian, Chantelle Stanton, Lisa Danielle Smith and Lucas White Smith, share sponsored posts with “gifted” hashtags.
Daily Mail Australia is not suggesting that any of the influencers named or photographed are not declaring gifts to the ATO or are otherwise evading tax.
Sydney-based actress and influencer Suzan Mutesi (above) said it will be difficult for influencers to gauge the value of the gifts they receive from companies.
The Australian Taxation Office said it will crack down on influencers who do not claim non-cash payments as income after sharing posts with the hashtag ‘gifted’
A high-profile accounting executive said the upcoming ‘game-changing’ policies will cause many influencers to reconsider whether the ‘gifts’ are worth the extra tax.
‘It’s all very well carrying a $5,000 purse but if you can’t pay the tax, what’s the point? It is a game changer that will make influential people reconsider the situation,” they said.
One celebrity agent agreed, adding that “the gravy train is over for influencers” who can’t afford expensive cash gifts.
“A crackdown campaign will take a much-needed weed beater for the infestations of Kardashian wannabes of late,” they said.
However, Sydney actress and influencer Suzan Mutesi said it might be difficult for some influencers to determine the value of their gifts.
He said many non-cash payments given to influencers may be sample designs that were never intended to sell, products made specifically for them, or invitations to exclusive vacations and events.