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Thinking about diving into the world of OnlyFans? Whether you’re aiming for pocket change or plotting retirement in style, understanding your tax responsibilities is a must. The ATO is always on the lookout!
Creating content on platforms like OnlyFans, Patreon, or Twitch might sound like a blast, but remember: a misstep in tax filing could lead to some unwelcome financial dance moves. Don’t want to trip up? We can help you navigate the steps and keep your tax tango on point.
Yes. The income you make is taxable whether you make it in salaried employment, the gig economy, on social media, or from subscription platforms such as OnlyFans.
Basically, it doesn’t matter where your income comes from. If you earn it, the ATO needs to know.
Essentially you’re seen as running a business if you:
A big part of what makes your account a business is your intention. If you intend to make a profit, then you are running a business. Even if you are not profiting yet, or only making a small amount of profit, you still need to report it to the ATO. If you’re making a substantial profit, then even more so!
You will need to include your OnlyFans income when you submit your individual tax return every year. That income is then combined with your other taxable income, and taxed at your marginal rate. But if you make less than $18,200 in a tax year, you won’t need to pay income tax on earnings up to that amount. However, anything above that tax-free threshold is subject to income tax.
It’s important to note here that OnlyFans does NOT withhold taxes from your pay, nor does it organise your taxes for you. You’re responsible for your taxes.
To ensure you don’t get a nasty shock at tax time, it’s a good idea to put aside a portion of your income in accordance with what you’re expecting to pay based on your earnings. You can see which tax bracket you fit into at this page.
If you’re anticipating a hefty tax bill, or would just like to stay on top of your tax debt throughout the year, you can look into making Pay As You Go instalments.
When you register for PAYG, the ATO will send you a quarterly tax bill that’s estimated based on your earnings for the previous tax year. You can adjust the amount you pay as you need to. It’s a good way to keep on top of your tax debt throughout the year, so you’re not faced with a large bill in July
One of the good things about running a business is that the ATO lets you offset your business purchases against your taxable income, reducing the amount you have to pay at tax time. Here’s the catch: Using personal items for business purposes isn’t straightforward. If an item serves both personal and business use, you can only claim the portion used for business. For instance, if you buy $1,000 worth of makeup for videos but use it daily too.
Anything you purchase specifically for the running of your OnlyFans account may be deducted as a business expense. This could include things like –
If you choose to file your tax return yourself, it can be filed with the ATO through your myGov account. Alternatively, get in touch and take the stress out of tax time.