Global Daily Tax News, Australia Highlights GST Rules For Content Creators, (Oct 16, 2023)

The Australian Taxation Office has drawn attention to the requirement for content creators to register and charge goods and services tax as soon as they make AUD75,000 or more.

In a statement addressed at tax agents, the ATO said: "If your clients make AUD75,000 or more from content creating activities, they'll have the same GST obligations as everyone else. Your clients need to register for GST if their GST turnover from their enterprise is AUD75,000 or more in a 12-month period."

This includes payments received (whether cash, services, goods or a percentage of advertising revenue) for creating and posting content that:

• reviews and promotes products and services;

• acquires followers, viewers, and subscribers;

• is sponsored, endorsed, or has advertising placed in it;

• is licensed by others;

• is created in collaboration with other content creators.

The statement highlights that when calculating turnover, both taxable and GST-free sales should be taken into account, as well as the value of non-monetary payments.

The ATO noted that payments received from recipients outside Australia may be GST-free, while payments received from within Australia will be taxable sales.

Once registered, GST should be collected on taxable sales and paid alongside a business activity statement (BAS).