TikTok Tax Breakdown

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TikTok and Taxes:

What Are The Rules In Australia?

If you’ve explored TikTok, you know its captivating scroll. But it’s not just for dancing; it’s a monetizable audience-builder. Just like YouTube, Twitch, and OnlyFans, the ATO keeps an eye on money-making platforms.

Whether for fun or profit, TikTok creators need tax awareness. If you’re earning, seek a tax pro’s guidance for a smooth TikTok tax return.

Do I Have To Pay Tax on TikTok Income?

Simply put: yes. Money is money, and the ATO doesn’t care what method you use to earn it. Even if you’re doing TikTok on the side, any money you earn from TikTok is potentially taxable.

Any earnings from sponsorships, endorsements, gifts, or merchandise must be reported on your tax return. Properly track all income sources, using tools like Xero or spreadsheets, to simplify tax reporting.

Is Your TikTok a 
Business or Hobby?

You may feel like your TikTok account is just a bit of fun – so why should you pay tax on it?
If you’re getting the occasional small gift from a fan, then it’s likely the ATO won’t see that gift as taxable income.

But essentially you’re seen as running a business if you:

Actively seek to improve your following.

Post with intention of financial benefit.

Use your profile to promote goods or services offline.

Keep records or income and expenses.

Spend money on improving your channel

Sponsorships and Brand Collaborations

Partnering with brands and businesses for sponsorships and collaborations on TikTok opens up opportunities to showcase their products or services within your engaging content.

Ad Revenue through TikTok's Creator Fund

Joining TikTok's Creator Fund allows you to tap into ad revenue generated by your videos. Based on your video views, engagement, and content quality, you earn a share of the revenue, turning your creative efforts into financial gains.

Sale of Merchandise or Products

Utilizing TikTok as a platform to market and sell your own branded merchandise or products enables you to monetize your follower base directly.

Affiliate Marketing Commissions

Integrating affiliate marketing into your TikTok content strategy empowers you to earn commissions by promoting products or services through personalized affiliate links.

Fan Donations or Gifts (In-App Purchases)

Interacting with your fans on TikTok goes beyond engagement; it can lead to financial support through virtual gifts and donations.

Forms of Income 
on TikTok

Claiming expenses for your TikTok account

Realized your TikTok income is taxable? Good news: as a creator, deduct your legitimate business expenses, reducing your taxable profit and tax burden. Be cautious, though; while some expenses qualify, others like personal clothing and makeup don’t. For an expense to count, it must be solely for video creation, not personal use. For instance, a costume distinct to your videos is deductible, but everyday attire used on occasion isn’t.

What Expenses
Can I Deduct?

Anything you purchase specifically for the running of your TikTok channel may be deducted as a business expense. This could include things like –

Client Success Stories


Explore our FAQ section to find answers to common questions. If you don’t see what your looking for please get in touch.

Let Us Help You Prepare Your Twitch Tax Return

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.