With the rise of social media in the last decade, comes a new type of career: blogging. Bloggers, or influencer’s as they are commonly known, are people who use social media platforms to promote products or services, using their ‘influence’ and like-ability to persuade the purchasing behaviours of their followers and communities.
For some, this is merely a hobby, a side-hustle if you will. For others, this is their full-time job. Given that this is a new profession, the Australian Taxation Office (ATO) has little guidance and regulation surrounding the profession. Whether you create content about makeup, fashion, health & lifestyle, travel or food, there are a range of deductions you may be entitled to in your next income tax return. Your trusted accountant will be able to help you navigate your obligations, liabilities and entitlements.
Some common deductions include:
- Internet costs- this can cover music downloads, hosting fees, domain name registration and software fees
- Computer equipment- this can include things such as laptops, digital cameras and much more. From the 1st of July 2019, the cost threshold will fall to $1000 per item, where you could previously have an instant deduction for business-related capital equipment under $20,000.
- Communication related expenses- business related mobile phones and plans can be claimed as a deduction
- Advertising, design and promotions- SEO services, logo design, advertising and giveaways are some expenses that you can claim as a deduction on your tax return
- Office equipment- such as desks, chairs, office stationary and business cards
- Office expenses- if you work from home you will more-than-likely be able to claim a portion of household bills including power, water and gas. You may also be able to claim part of your rent or mortgage payments.
- Last but not least, the cost of your accountant can be claimed as a deduction! This is applicable not only to bloggers, but the general population also.
- Other expenses can often be claimed, so be sure to see your trusted financial expert for more in-depth information, tailored to your specific circumstances.
Whilst there are a vast array of expenses that you can claim as deductions, there are also many that you cannot. Did you know that gym memberships cannot be claimed as a work-related expense by health and fitness influencer’s? Similarly, food bloggers cannot claim food, and travel bloggers cannot often claim travel expenses. This is because the expense is primarily for a private purpose.
There are some prerequisites you must meet if you wish to claim these expenses as a work-related deduction as an influencer. So be sure to get your information from a reputable and trustworthy source. Call us today or book an appointment online to talk to one of our qualified team and see how we can help you.