Many cyber celebrities on platforms such as YouTube, Instagram and even OnlyFans, may not even be aware of how much income they will have to declare, a tax expert says.“For most of these content providers, tax compliance would be as far away from anytthing that they are thinking about,’’ Andrew Gardiner, spokesman for the National Tax & Accountants’ Association, said.“This is a can of worms from a tax point of view. “I suspect they’re providing all this content, the money’s rolling in and they are so focused on what they are doing, that people are overlooking the fact that they may have tax obligations associated with the money they’re earning.’’The Australian Taxation Office warned it would track down influencers who don’t declare their revenue – including some gifts and sponsorships.“We have sophisticated data-matching and analytical tools in place that enable us to identify people that may be under-reporting their income from a range of activities,’’ an ATO spokesperson said. “We use information reported by businesses and third-party data, including financial institution data, to ensure people are declaring their income.’’Social media platforms have been a pathway to millionaire status for many of its stars and influencers.Money is earned either through paid subscriptions, gifts and sponsorships or advertising revenue.And the amount of cash being earned through social media, especially Instagram, can be eye-watering.Jessica Sepel, the brains behind vitamin brand JSHealth, has a net worth of $426m, it was revealed this week. Fitness trainer and Sweat app founder Kayla Itsines is worth $164m while fitness and beauty influencer Emily Skye Anderson is said to be worth $95m.Individual posts on Instagram can earn former footy WAGS Rebecca Judd and Nadia Bartel thousands of dollars, while reality TV stars are quick to cash in on the popular photo sharing platform.Former Married At First Sight couple Martha Kalifatidis and Michael Brunelli can earn more than $1000 from each post.Other MAFS alumni, including Jessika Power, Hayley Vernon, Olivia Frazer and Jackson Lonie have taken to the OnlyFans adult video subscription site for quick cash. Renee Gracie, a former motor racing driver, said she had become a multi-millionaire after thousands of subscribers paid to her page on the platform.Mr Gardiner said when a hobby became a business was when tax issues would come under scrutiny.The ATO said that when influencers received payment, including goods, for their marketing and promotion services or content, the income had to be reported, even if it was a one-off.“Payments from subscribers or supporters received through digital platforms (such as a website or an app) should be reported as income, regardless of how much it is or whether it was made voluntarily,’’ the spokesman said.One influencer who fell foul of national regulators was Melbourne businesswoman Sophie Cachia, whose Instagram post about a “life-changing” phone charging cable caught the attention of Ad Standards.A community panel investigated her Insta post promoting a Cygnett charger following concerns it was not distinguishable from advertising.The Herald Sun is not suggesting any of the influencers named in this story have not properly declared their incomes, they have been named just as good examples of how influencers can earn large sums of money.Mr Gardiner said income that was earned overseas, such as from YouTube, was also an issue to be considered.“Australian resident taxpayers are taxed on worldwide income as a broad proposition,’’ he said.Yet yhat appeared to be a straightforward issue actually prompted many questions, he said.“Have I derived the income overseas? Is it taxable overseas? Is it taxable in Australia? Where do I sit from a GST point of view? And we haven’t even gotten to the issue of deductions yet. “A very simple situation has become very complicated quickly and you can see why people overlook it.’’The ATO also warned that influencers that they cannot claim deductions for the personal part of their expenses, such as private laptop use.Both the ATO and the NTAA urged anyone with concerns to seek the advice of a professional tax agent.
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