Youtube has grown in popularity as a platform in recent years for content producers to share their videos with the globe. Many of these content producers, also referred to as “YouTubers,” make a sizable living from sponsorships and ad money. But the question is, do YouTubers in Australia pay taxes?
Yes, it is the answer. Youtubers must pay taxes on their income just like any other Australian citizen or resident. Income from YouTube is regarded as business income by the Australian Taxation Office (ATO). YouTubers must, as a result, apply for an ABN and file a tax return in which they disclose their income.
Additionally, if their yearly turnover surpasses $75,000, Youtubers who make money from their channel must also pay Goods and Services Tax (GST). This means that YouTubers that sell goods or provide services, like workshops or workshop fees, must charge GST. They are not needed to register for GST, though, if their yearly revenue is less than $75,000.
Furthermore, YouTubers must disclose this income in their tax return if they accept sponsorship or endorsement money from businesses. YouTubers must pay tax on this revenue since the ATO views it as ordinary income. Youtubers can also write off expenses for things like software and equipment fees, internet, and phone bills that were incurred while making their videos.
In addition, the ATO takes into account the idea of a related entity, which is defined as a person or thing that significantly controls or exerts influence over the business affairs of the Youtuber. For instance, a network or agency that offers resources and support, such as video editing and marketing, to a Youtuber might be regarded as a connected entity. As a result, for taxation purposes, the Youtuber’s revenue may be ascribed to the associated entity.
In conclusion, Australian Youtubers must pay tax on all of their business income, including money from sponsorships, advertising, and item sales. Additionally, they must file a tax return, declare their income, and register for an ABN. Youtubers who make more than $75,000 annually must add GST to the price of their goods and services. YouTubers also need to understand the idea of a connected company and how it could affect their tax obligations.