Episode

Content Creators: Hobby, Side Hustle or Business?

Making money from your posts? Ad money, a brand deal, tips from fans or a box of free products on the doorstep can all count as income. In October the ATO put out new guidance for content creators, along with a draft ruling on when an individual is carrying on a business. Comments on the draft close on 27 November 2026.

In this episode, Mia and Leo are joined by tax strategist Harvey Green, who takes them through what the ATO says and where its own examples land.

In this episode, we cover:

Three Buckets: Your content creation may be a business, an activity that earns you income without being a business, or a genuine hobby. A genuine hobby's takings generally aren't taxable, but you can't claim the costs either. In the middle bucket, what you earn generally still goes in your return and you can claim the eligible costs of earning it, but the business registrations, like an ABN and GST, don't apply. In one ATO example, a travel blogger who isn't in business takes a one-off $500 payment from a hotel, and that $500 is still assessable income.

When It's a Business: There's no single test and no magic dollar figure. The ATO weighs things like a commercial purpose, whether you're out to make a profit and realistically could, how regular and organised it is, and the size and scale, then goes on the overall impression. A small following or modest income doesn't automatically make it a hobby, and a day job doesn't stop it being a business. Nor does enjoying it. In 2005 the High Court found a Queensland police officer's athletics was a business in the tax year in question, largely because sponsors were paying her to promote them.

Hobby to Business: A hobby can grow into a business, like the comedian in the draft ruling whose video goes viral. Starting to make money from a channel is when the ATO says you must reassess, but it isn't an automatic switch.

Free Doesn't Mean Tax Free: If you're gifted something because of your content, the ATO says it generally needs to be declared at its market value. In its example, a lifestyle creator who's in business is flown to a resort to make content for it, with no cash at all. With the flights at $8,000 and the accommodation and extras at $5,000, she'd generally need to include $13,000 as income, and any tax on it has to come from somewhere else. So write down what comes in, who sent it and what it's worth.

Deductions and Losses: If you're in business, you may be able to claim what you spend producing content, but anything you also use privately, like makeup or a phone, has to be apportioned. A loss only comes off your wages in the same year if you meet the non-commercial loss rules. Otherwise it's deferred to a later year.

ABN, GST and Records: If your channel is a business, the ATO's guide says to register for an ABN, and once your turnover reaches $75,000 over 12 months, or is likely to, you have 21 days to register for GST. That's turnover, not profit. Ad payments from overseas networks are generally GST free but still count towards the $75,000, and if the platform paying you is an Australian entity, the ATO's own example treats your sale to it as a taxable sale. Keep your records for at least five years.

How the ATO Knows: If fans tip or subscribe through a platform, the platform generally has to report those payments, and the ATO says it also finds undeclared income through data matching, its lifestyle assets program and tip-offs.

Not New Law: The guide sets out how the ATO sees the law applying, and the ruling is still a draft that won't take effect until it's finalised. When it is, the ATO proposes it apply to past years as well as future ones. The ATO's free course, Content, clicks, income and tax, takes about 45 minutes.

If you're not a client yet and you'd like someone to work out which bucket you're in, head to aevumaccounting.com.au and book a session. If you're already a client and your channel has started earning, bring it to your next catch-up and we'll go through it.

Frequently Asked Questions

Q: Are freebies from brands taxable for content creators? A: They can be. If you're gifted something because of your content, the ATO says it generally needs to be declared at its market value, and as it put it, free doesn't mean tax free. In the ATO's example, a lifestyle creator who's in business is flown to a resort to make content for it, with no cash at all. With the flights at $8,000 and the accommodation and extras at $5,000, she'd generally need to include $13,000 as income, and any tax on it has to come from somewhere else. So keep a note of what comes in, who sent it and what it's worth. Q: Is my content creation a hobby, a side hustle or a business? A: The ATO's guide sets out three possibilities: a business, an activity that earns you income without being a business, which is where a lot of side hustles land, or a genuine hobby. A genuine hobby's takings generally aren't taxable, but you can't claim the costs either. Outside a genuine hobby, what you earn generally goes in your return, and you can claim the eligible costs of earning it. In one ATO example, a travel blogger who isn't in business takes a one-off $500 payment from a hotel, and that $500 is still assessable income. What doesn't apply in that middle bucket is the business registrations, like an ABN and GST. Q: How does the ATO decide whether a content creator is carrying on a business? A: There's no single test and no magic dollar figure. The ATO weighs things like whether there's a commercial purpose, whether you're out to make a profit and realistically could, how regular and organised it is, and the size and scale, then goes on the overall impression. A small following or modest income doesn't automatically make it a hobby, a day job doesn't stop it being a business, and neither does enjoying it. You can be in business before you've turned a profit, as long as you've genuinely started and haven't just made plans. Starting to make money from a channel is when the ATO says you must reassess, but it isn't an automatic switch. Q: Do content creators need an ABN and GST registration? A: If your channel is a business, the ATO's guide says to register for an ABN. Once your turnover reaches $75,000 over 12 months, or is likely to, you have 21 days to register for GST, and that's turnover, not profit. Once you're registered, local brand deals and sponsorships generally carry GST, and you'll lodge business activity statements. Ad payments from overseas networks are generally GST free, but they still count towards the $75,000, and if the platform paying you is an Australian entity, the ATO's own example treats your sale to it as a taxable sale. Keep records of every business transaction for at least five years. Q: Is the ATO's draft ruling on carrying on a business new law? A: No. The law itself hasn't changed. The ATO's guide for content creators sets out how it sees the law applying, and draft ruling TR 2026/D2 sets out its view on when an individual is carrying on a business. Comments on the draft close on 27 November 2026, and it won't take effect until it's finalised. When it is, the ATO proposes it apply to past years as well as future ones. The ATO also has a free course, Content, clicks, income and tax, that takes about 45 minutes.

Read the transcript

Mia: Welcome to the podcast, our newsletter made easy. Please note, this podcast features AI-generated voices for your hosts, Mia Taylor... Leo: and Leo Baker, bringing you expert insights from the team at Aevum Accounting. Each week, we're here to help you confidently navigate the ins and outs of Australian tax, whether it's for your individual finances or the complexities of your business. Mia: We'll cut through the jargon to give you strategies for compliance, smart planning, and that ultimate peace of mind. Leo: So, if you're looking to understand your obligations, maximise your financial position, or simply gain clarity on your money matters, you're in the right place. Let's get started with our review of the week! Mia: This one comes from Trenton, who says: I had a great experience completing my small business tax return with Troy. Thanks so much, would highly recommend! Leo: Thank you, Trenton. A small business tax return is where today's topic ends up, because plenty of people making content online could be running a small business without realising it. Mia: So today is for anyone getting something back for their posts, whether that's ad money, a brand deal, or a box of free products on the doorstep. Leo: And the timing's no accident. In October the ATO put out new guidance for content creators, along with a draft ruling on when an individual is carrying on a business. Harvey's here to take us through it. Harvey: Thanks, Leo. The ATO's starting point is that income isn't just what hits your bank account. It can also include ad and platform payments, sponsorships and affiliate links, tips, donations and subscriptions, and free products, services or experiences you get in exchange for promotion. Mia: Wait, so the freebies count as well? Harvey: They can. If you're gifted something because of your content, the ATO says it generally needs to be declared at its market value. Or, as the ATO put it, free doesn't mean tax free. Leo: That's going to surprise a lot of people with a cupboard full of samples. Mia: But surely not everyone who posts online is running a business? Harvey: No, and that's the most important idea in this episode. There are three buckets. First, a business. Second, an activity that earns you income without being a business, which is where a lot of side hustles land. And third, a genuine hobby. Leo: Let's start with the hobby. What does that look like? Harvey: The ATO's example is someone posting dance videos every now and then, for fun, for friends and family. No sponsors, no ad money, no plans to earn anything. That's a hobby. A genuine hobby's takings generally aren't taxable, but you can't claim the costs either. Mia: And the middle bucket? Harvey: That's the one that catches people out. In another of the ATO's examples, a travel blogger who isn't in business takes a one-off $500 payment from a hotel to feature it. She isn't running a business, but that $500 is still assessable income. Leo: So not being a business doesn't make it tax free. Harvey: Exactly. Outside a genuine hobby, what you earn generally goes in your return, business or not, and you can claim the eligible costs of earning it. What the ATO says doesn't apply in that middle bucket is the business registrations, like an ABN and GST. Mia: So how do you know when it's become a business? Harvey: There's no single test and no magic dollar figure. The ATO weighs things like whether there's a commercial purpose, whether you're out to make a profit and realistically could, how regular and organised it is, and the size and scale. Then it goes on the overall impression. Leo: What does that look like in practice? Harvey: Posting to a schedule, chasing brand deals, signing contracts, tracking your numbers, and putting money into gear and editing software. The ATO's guide even mentions having a team around you, like an editor or a talent manager. Mia: What if you've only got a small following? Harvey: The ATO says a small following or modest income doesn't automatically make it a hobby. Size is one factor, not the whole test. Leo: And plenty of our listeners already have a full-time job. Harvey: That doesn't stop it either. The ATO's own example is a mechanic who starts a channel on the side showing how to fix machinery. She sets a production schedule, buys lighting and sound gear, joins the platform's partner program and records her expenses. She's in business, even with the day job. Mia: And if you haven't made any money yet? Harvey: You can be in business before you've turned a profit, as long as you've genuinely started and haven't just made plans. Buying a ring light and dreaming up a channel name generally isn't a business yet. Leo: What about people who just love doing it? Harvey: Enjoying it doesn't stop it being a business. The High Court said something similar back in two thousand and five, that idealistic motives don't stop something being a business. That case was about a Queensland police officer who'd competed in the javelin at the nineteen ninety-six Olympics. Mia: Hang on, a police officer? Harvey: A police officer, employed in the Queensland Police Service. But she was being paid by sponsors to wear their gear and promote them, and largely because of that, the Court found her athletics was a business in the tax year in question. So her prize money and grants were income too. Leo: Which today we'd just call a brand deal. Harvey: Exactly. Swap the javelin for a camera and it's the same question. Mia: Can a hobby turn into a business along the way? Harvey: It can. The draft has an example of a comedian whose video goes viral. He starts taking ad money, signs with a management company, upgrades his gear and hires an editor. By then, in the ATO's view, he's in business. Leo: So the moment you switch on ads, you're a business? Harvey: Not automatically. Starting to make money from a channel is when the ATO says you must reassess. It isn't an automatic switch. Mia: What about someone who streams their gaming? Harvey: The draft has that one too. A gamer who streams for fun and gets the odd small donation, with no ads and no subscriptions, has no realistic prospect of profit, which points away from a business. If he starts chasing ad revenue, selling merchandise and actively asking for donations, that can start to change. Mia: Let's go back to the freebies, because I suspect that's the part people really don't expect. Harvey: The ATO's example is a lifestyle creator who's flown to a resort to make content for it, with no cash at all. Put the flights at $8,000 and the accommodation and extras at $5,000, and she'd generally need to include $13,000 as income. Leo: $13,000, and not a cent in her bank account. Harvey: That's the catch. In that example she's running a business, so the trip is generally treated as business income, and any tax on it has to come from somewhere else. Mia: So what should people do when the parcels start arriving? Harvey: Write it down. What it is, who sent it, and what it's worth. As the ATO put it, if it's part of how you earn, it needs to be recorded. Leo: Now for the better news. What can a creator claim? Harvey: If you're in business, you may be able to claim what you spend producing content, but anything you also use privately has to be apportioned. The ATO's example is makeup. Used only in your tutorials, it's deductible. Used in your own life too, you can claim some of the cost. Mia: And I'm guessing the same goes for a phone. Harvey: Same idea. Whatever you also use privately gets apportioned. Leo: What if the channel costs more than it brings in? Harvey: If it's a hobby, there's nothing to claim at all. If it's a business and you've also got a job, the loss only comes off your wages in the same year if you meet the non-commercial loss rules. Otherwise it's deferred and claimed in a later year. Mia: Okay, the paperwork. If your channel is a business, what needs sorting? Harvey: The ATO's guide says to register for an ABN. And once your turnover reaches $75,000 over twelve months, or is likely to, you have twenty-one days to register for GST. Leo: Turnover, not profit? Harvey: Turnover. It's your total business income, not your profit, so it can creep up faster than people think. Mia: And once you're registered? Harvey: Local brand deals and sponsorships generally carry GST, and you'll be lodging business activity statements. Ad payments from overseas networks are generally GST free, but they still count towards the $75,000. And if the platform paying you is an Australian entity, the ATO's own example treats your sale to it as a taxable sale, so check who's actually paying you. Leo: So the overseas money still counts. That'll catch a few people. Harvey: It will. And keep records of every business transaction for at least five years. Good records also help show you're running a real business in the first place. Leo: And what about the tax bill at the end of the year? Harvey: If you're worried about a big one, the ATO's guide points to pay as you go instalments, so you pay your tax through the year in smaller amounts. Mia: How would the ATO even know about any of this? Harvey: If fans tip or subscribe through a platform, the platform generally has to report those payments to the ATO. And the ATO says it finds undeclared income through data matching with platforms, its lifestyle assets program and tip-offs. Leo: And what about someone who's stopped posting, but their old videos still earn? Harvey: Even after you stop creating, the ad money your old videos keep earning is still assessable. Mia: Is any of this actually new law? Harvey: No. The law itself hasn't changed. The guide sets out how the ATO sees it applying, and the ruling is still a draft. Comments close on the twenty-seventh of November, and it won't take effect until it's finalised. When it is, the ATO proposes it apply to past years as well as future ones. Leo: So it's worth checking where you stand now, rather than waiting for the final version. Harvey: It is. And if you'd like to learn more, the ATO has a free course called Content, clicks, income and tax. It takes about forty-five minutes. Leo: So, Harvey, what should a creator actually do? Harvey: Three things. First, work out which bucket you're in, and look again whenever the money changes. Second, write down everything that comes in, cash or not, with what it's worth. And third, if you're in business, get your ABN sorted, keep an eye on the $75,000 GST threshold, and keep your records for at least five years. Leo: Quick recap, then. Three buckets: a business, an activity that earns income without being one, and a genuine hobby. Free stuff can be income at its market value. And the draft ruling is open for comment until the twenty-seventh of November. Mia: If you're not a client yet and you'd like someone to work out which bucket you're in, head to aevumaccounting.com.au and book a session. Leo: Or head to aevumaccounting.com.au. And if you're already a client and your channel has started earning, bring it to your next catch-up and we'll go through it. Mia: Before we go, a quick but important reminder. The information shared today is for general informational purposes only, and does not constitute specific tax or financial advice. Leo: Everyone's situation is unique, and tax laws are complex. For personalised advice tailored to your situation, we always recommend consulting with a qualified professional. Mia: Until next time, stay savvy, stay proactive... Harvey: And if the freebies keep turning up, write them down!

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