Do Twitch Streamers Pay Taxes in Australia?
Everything Australian Twitch streamers need to know about income tax, the W-8BEN form, SERR reporting, deductions, and what the ATO already knows about your earnings.
- Every dollar you earn from Twitch is taxable in Australia, including Subs, Bits, ads, Bounty Board, and brand deals.
- Twitch pays in USD. You must convert to AUD at the exchange rate on the date each payment is credited to your account.
- Without a W-8BEN form, Twitch withholds 30% of your US-sourced income. With one, the rate drops to 5% under the Australia-US tax treaty.
- The ATO receives platform payment data under the Sharing Economy Reporting Regime (SERR) from 1 July 2024.
1 Yes, Twitch income is taxable
Every form of Twitch income is assessable in Australia. There is no minimum threshold below which streaming income becomes tax-free. If you earned it, you report it. This includes:
- Subscriptions (Subs): Tier 1 ($7.99 AUD), Tier 2 ($15.99), and Tier 3 ($39.99). Twitch takes 50% of Tier 1 Subs for most streamers (top partners may negotiate 70/30). Your share is taxable income.
- Bits: Viewers purchase Bits from Twitch and “cheer” them during streams. You receive 1 US cent per Bit. Taxable when credited to your Twitch balance.
- Ad revenue: Twitch runs ads during your stream. You earn a share based on impressions. This is advertising income, not a gift.
- Bounty Board: Sponsored content campaigns through Twitch’s built-in platform. Assessable business income.
- Brand deals and sponsorships: Any payment from a brand for promoting their product, whether paid in cash, product, or services.
- Donations: Despite the name, Twitch “donations” (typically via PayPal or Streamlabs) are not charitable donations. They are assessable income when received as part of a business activity.
- Merchandise: Sales revenue is assessable. Cost of goods is deductible.
A streamer earning $45,000 from Twitch (after Twitch’s cut) plus $55,000 from a day job has a total taxable income of $100,000. Before deductions, the income tax on that is approximately $22,967 plus $2,000 Medicare levy for 2025-26.
2 The W-8BEN form: stop giving 30% to the US
This is the single most important tax form for Australian Twitch streamers, and most people either ignore it or fill it out incorrectly.
Twitch is a US company (operated by Amazon). Without a W-8BEN form on file, Twitch is legally required to withhold 30% of your US-sourced income and remit it to the IRS. That is money gone before it reaches your bank account.
Australia has a tax treaty with the United States that reduces this withholding rate to 5% for royalties. To access the treaty rate, you need to:
- Complete IRS Form W-8BEN (not W-8BEN-E, which is for entities)
- Enter your Australian TFN in the “Foreign tax identifying number” field
- Claim treaty benefits under Article 12 (Royalties) of the Australia-US tax treaty
- Submit through your Twitch dashboard under Settings > Tax Information
The form is valid for three calendar years. If it expires, Twitch reverts to 30% withholding without warning. Any US tax withheld can be claimed as a foreign income tax offset on your Australian return, but it is far better to get the rate right upfront.
Full step-by-step guide: How to Fill Out the W-8BEN Form as an Australian Content Creator3 Currency conversion: Twitch pays in USD
Twitch pays Australian streamers in US dollars. For tax purposes, you must convert each payment to AUD using the exchange rate on the date the income is credited to your Twitch account, not when you withdraw it to your bank.
The ATO publishes historical exchange rates on its website. If the AUD weakens between earning and withdrawal, the additional AUD you receive is assessable income. If the AUD strengthens, the shortfall is a deductible foreign exchange loss.
Practical tip: Download your Twitch payout history at the end of each quarter and convert each payment individually using the ATO’s published rates. Xero can automate this if you record transactions correctly.
4 The Sharing Economy Reporting Regime (SERR)
From 1 July 2024, the ATO receives payment data directly from digital platforms, including Twitch, under the Sharing Economy Reporting Regime. This reporting happens twice a year (31 January and 31 July) and covers all income types.
The ATO already knows how much Twitch paid you. If your tax return does not match, expect a data-matching letter. These are usually resolved with an amended return, but penalties and interest apply if the ATO determines the omission was not a genuine mistake.
5 Hobby or business? The ATO’s test
The ATO distinguishes between a hobby and a business. If your streaming is a hobby, you still declare the income, but you cannot claim deductions against it.
Your Twitch streaming is a business if:
- You have a genuine intention to make a profit
- You stream regularly and on a schedule
- You have invested in equipment, software, or marketing
- You promote your channel to grow your audience
- You keep business records (income tracking, expense receipts)
Most streamers who earn consistently and treat their channel as an income source will meet the ATO’s business criteria. Once you cross that line, you can claim deductions, but you also need an ABN.
6 ABN and GST
Get an ABN from the moment you start treating your stream as a business. It is free, takes 10 minutes at abr.gov.au, and links to your TFN. Without an ABN, the no-ABN withholding rate of 47% can apply to payments from Australian sources (brand deals, sponsorships from Australian companies).
GST registration becomes mandatory once your total business turnover exceeds $75,000 in a rolling 12-month period. Once registered, you charge 10% GST on applicable supplies, lodge quarterly BAS, and can claim GST credits on business expenses.
Voluntary GST registration below $75,000 lets you claim back GST on equipment and expenses, but it also means charging GST on your Australian-sourced income. For most small streamers, it is not worth the administrative overhead until you approach the threshold.
7 What you can claim as a Twitch streamer
Every deduction must be directly connected to earning your Twitch income. Mixed-use items can only be claimed for the business-use proportion.
- Computer and peripherals: Gaming PC, monitors, keyboard, mouse, headset, controller. Items under $20,000 can be written off immediately.
- Streaming equipment: Webcam, capture card, microphone, lighting, green screen, stream deck, camera.
- Internet: The business-use proportion of your home internet.
- Home office: 67 to 70 cents per hour under the fixed rate method, or actual costs if you have a dedicated streaming room.
- Software and subscriptions: OBS, Streamlabs, stream overlays, Canva, Adobe, music licensing (Epidemic Sound, Pretzel Rocks), chatbot subscriptions.
- Games: Games purchased specifically for streaming content. If you also play them off-stream, claim only the business-use proportion.
- Platform costs: Payment processor fees (PayPal, Streamlabs).
- Marketing: Social media promotion, Discord Nitro (for community building), giveaway costs.
- Professional fees: Accountant, bookkeeper, tax agent. Fully deductible.
What you cannot claim: Your general gaming setup if used primarily for personal gaming, everyday furniture, food and drinks consumed while streaming, and personal clothing (even if worn on stream).
8 Tax rates for 2025-26
Your Twitch income is added to all your other income and taxed at your marginal rate:
| Taxable income | Tax rate |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 16% |
| $45,001 to $135,000 | 30% |
| $135,001 to $190,000 | 37% |
| $190,001+ | 45% |
Plus 2% Medicare levy on total taxable income.
Worked example: A streamer earning $30,000 from Twitch after deductions, plus $50,000 from a day job. Total taxable income: $80,000. Income tax: $14,467. Medicare levy: $1,600. Total tax: $16,067. Effective tax rate: approximately 20%.
If you are earning consistently from Twitch, the ATO may issue PAYG instalment notices requiring you to prepay tax quarterly. Set aside 25 to 30% of every Twitch payout into a separate savings account.