Models, artists, and influencers have found OnlyFans to be a valuable tool for monetising content and earning income through subscribers. OnlyFans earnings, however, are subject to taxation as with any other form of income. You should understand your tax obligations as an OnlyFans creator in Australia and how to report your earnings to the Australian Taxation Office (ATO).
Registering for an ABN
You should register for an ABN if you are a new OnlyFans creator and familiarise yourself with the tax laws and regulations that pertain to your business. In addition, you can use tax accounting software or hire a tax professional to help you manage your tax affairs and ensure compliance.
In addition, the ATO is cracking down on tax evasion in the gig economy, including OnlyFans creators, by utilising sophisticated data-matching technology. Due to this, it is more important than ever that you pay the correct amount of tax and report your income accurately.
It is a legal requirement that you pay tax on your OnlyFans earnings in Australia. Self-employed individuals must register for an ABN, declare their income as business income, and pay income tax and GST if applicable. Keep accurate records of your income and expenses in order to ensure that you are paying the correct amount of tax and to simplify the process of completing your tax return. Keeping up with your tax obligations can help you avoid penalties and legal action, allowing you to focus on growing your OnlyFans business.
ATO considers OnlyFans earnings to be assessable income
In the first instance, it is important to note that the ATO considers OnlyFans earnings to be assessable income. Any income earned from OnlyFans must be reported on your tax return, and you will have to pay tax on it. If you fail to declare your OnlyFans income, you may be subject to penalties, interest, and even legal action.
In your capacity as an OnlyFans creator, you are considered to be self-employed, so you will be required to report your earnings as business income on your tax return. ABNs must be obtained and accurate records of income and expenditures must be maintained.
OnlyFans and GST
If your OnlyFans earnings exceed the GST threshold of $75,000 per year you will be required to register for GST, however, the income derived from OnlyFans is in fact free of GST. Only earnings made here is Australia will be subject to the 10% GST. These could include private FFSW jobs, promotional jobs, commissions, etc.
In order to calculate your income tax, you must subtract your earnings from your deductible expenses, which is called your net income. Equipment, props, and software expenses, as well as marketing and advertising expenses, are all deductible expenses related to the production of your content. There is no need to register for GST if your income is less than $75,000 per year, however, you will still need to report your income to the ATO and pay income tax.
Please keep in mind that if you are registered for GST, you will also be able to claim back any GST that you paid on your business expenses. Expenses related to creating your content, such as equipment, props, and software, as well as expenses associated with promoting your content, such as advertising and marketing costs, can be included in this category.
Records of business income and expenses
In order to report your OnlyFans income to the ATO, you must include it under the ‘business income’ section of your tax return. In addition to providing details of your income and deductible expenses, you will also need to provide details of any GST you have paid or received. As well as receipts and bank statements, you may be required to provide evidence of your income and expenses.
Keeping accurate records of your income and expenses throughout the financial year will simplify the process of completing your tax return and ensure that you are paying the appropriate amount of tax. Maintaining records of subscription income, tips and donations received, and expenses associated with producing and promoting your content is part of this process.
As an OnlyFans creator, you should also be aware of other taxes and levies. The Medicare levy may be applicable to you if your annual income exceeds $46,000, as it is a levy that contributes to the funding of the Australian healthcare system. It is also possible that you will have to pay state taxes, such as payroll taxes if you have employees or contractors working for you.
As an OnlyFans creator in Australia, you must pay tax on your earnings. As a result, you will need to register for an ABN, report your income as business income, and pay income tax and GST if applicable. In order to ensure that you pay the correct amount of tax and to make it easier to complete your tax return, it is important to keep accurate records of your income and expenses throughout the financial year. In addition, you should remain aware of your tax obligations and seek professional advice if you have any questions regarding them.
Too hard? Here is a quick snapshot to make sure you are on the right track.
- Acquire an ABN before you begin your OnlyFans journey.
- Ensure you check out your tax requirements.
- Keep in mind that if you earn over 75K you need to register for GST.
- GST is only required for onshore income or expenses so anything offshore is GST exempt.
- Get yourself an amazing accountant to handle all this shit for you.
