Updated 26 July 2026
In this guide
First: yes, you need an ABN
Creating content for subscribers with intent to profit is a business, not a hobby, and businesses operate under an ABN. It costs nothing, takes minutes, and without one, Australian businesses paying you (brand deals, appearances) must withhold 47% from payments. The ABN also anchors your GST registration once turnover approaches $75,000; platform income is generally GST-free as an export but still counts toward that threshold, as covered in our creator GST guide.
Sole trader: the right default
As a sole trader, profit is taxed at your individual marginal rates, the setup is free, losses in the early phase offset other income, and the compliance load is one tax return with a business schedule. The full mechanics, PAYG instalments included, are in our sole trader essentials. The only real downsides are the top marginal rates at high income and unlimited personal liability, which for a creator business with no premises, staff or trade creditors is a thinner concern than for a builder.
The comparison at three income levels
Creator profit after deductions, 2025-26 rates, sole trader versus a company retaining all profits at the 25% base rate entity rate. The company column assumes profits stay in the company; drawing them out as wages or dividends pulls the total back toward personal rates.
| Annual profit | Sole trader tax + Medicare | Company tax (fully retained) | Real difference |
|---|---|---|---|
| $60,000 | ~$10,000 | $15,000 | Sole trader wins clearly |
| $150,000 | ~$38,800 | $37,500 | Line ball, before company costs |
| $300,000 | ~$104,000 | $75,000 | Company wins ~$29,000, if profits stay in |
The pattern: below roughly $150,000 the company saves nothing and costs more to run (setup, ASIC fees, a second tax return, bookkeeping). Above it, the saving is real only for profit you leave in the company. Money you need to live on comes out as wages or dividends and gets taxed to you anyway, and money you take informally becomes a Division 7A loan problem, the deemed-dividend trap covered in our Division 7A guide.
The PSI rule that overrides the table
Personal services income is income mainly generated by your personal skills and efforts, and creator income is close to the definition's centre. Where PSI rules apply and you do not pass the results-based and business-structure tests, the income is attributed back to you personally regardless of the company or trust it flows through, deleting the tax benefit the structure existed for. Creators diversifying into genuine business income (a team producing content, product lines, agency income from other creators) build a stronger non-PSI position; a solo creator whose subscribers pay for their personal content should assume the attribution risk is live and get specific advice before structuring for tax.
What a company still legitimately offers a high-earning solo creator: smoothing lumpy income across years, super contributed as an employer, privacy of a business name on invoices and contracts, and a container for the brand as it becomes a team. Those are real; the pure rate arbitrage mostly is not.
Trusts: the family-income question
A discretionary trust distributing to family members in lower brackets is the classic small business play, but for creator income the PSI analysis above applies with equal force, s100A polices distributions where the cash flows back to you, and the Budget's proposed 30% minimum tax on discretionary trust income from 1 July 2028 shrinks the future upside. Trusts earn their place for creators with substantial non-PSI income streams or investment assets accumulating alongside the content business, per our structuring guide; they are rarely the first move.
The practical path
Start sole trader with the ABN, clean records and quarterly tax set-asides. Revisit structure when profit sustainably clears $150,000, when a team or product line creates genuine non-PSI income, or when a specific need (liability, partners, brand sale) appears. Structure changes mid-flight are manageable with rollovers when planned; the expensive version is unwinding a company that never should have existed.
Frequently asked questions
Do I need an ABN for OnlyFans?
Yes, if you create content with intent to profit, you are in business and should hold an ABN. It is free and prevents 47% no-ABN withholding on Australian business payments.
Should OnlyFans creators set up a company?
Usually not below roughly $150,000 of sustained profit. Above that, a company helps mainly for profits retained in it, and personal services income rules can remove the benefit for solo creators.
What is PSI and why does it matter for creators?
Personal services income is income mainly from your personal efforts. Where the rules apply, income is taxed to you personally even if earned through a company or trust, defeating the structure's tax purpose.
Can I split OnlyFans income with my partner through a trust?
Generally not effectively. PSI attribution and s100A both target arrangements routing personal-effort income to lower-taxed family members.
What tax rate do OnlyFans creators pay?
Sole traders pay individual marginal rates on profit: roughly $10,000 on $60,000, $38,800 on $150,000 at 2025-26 rates. The base figures are in our OnlyFans tax guide.
When should I get structure advice?
When profit approaches $150,000, when non-content income streams appear, or before signing anything that locks in an entity. Advice before setup beats restructure after.
Structure it once, properly
We run the PSI analysis, the numbers at your income, and the setup if it stacks up. Talk to our OnlyFans accountants.
Talk to our OnlyFans accountantsThis article provides general information only, current at the date of publication, and does not constitute personal tax, legal or financial advice. Consider your circumstances or speak with us before acting. Liability limited by a scheme approved under Professional Standards Legislation.
