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Every day, over 4 million broadcasters produce live streaming content on Twitch. If you’re one of them, any income you earn is subject to taxation here in Australia. Even if you feel you’re just having some fun, the ATO may classify your channel as a business, and they’ll expect their slice of the pie come tax time.
If you’re making money from Twitch, YouTube, or any other streaming service for creators (e.g. Patreon, OnlyFans & Social Media Influencers), it’s a good idea to speak with a tax agent to ensure you’re meeting your obligations with the ATO.
Yes they certainly do, just like YouTubers or any other online content creators. Don’t be fooled into thinking that because you’re not sitting in an office, you’re not running a business.
Anything you purchase specifically for the running of your Twitch channel may be deducted as a business expense. This could include things like –
Explore our FAQ section to find answers to common questions. If you don’t see what your looking for please get in touch.
Even though you can receive donations through Twitch, you are not running a registered Charity and legally cannot accept charity donations. Your donations are actually payment for a service or goods, which is income. Income is taxable.
Most Twitch channels are accessible by the ATO because they exist as a profit-making enterprise, they receive regular payments, and the channel owner conducts business-related operations to run the channel.
You need to report on your Twitch net income or loss just as you would with any other business or employment. Being an affiliate for Twitch is like being a contractor for a business. They don’t pay tax on your behalf, nor do they keep records for you beyond your payout figures. It’s up to you to keep records, declare your income, and pay your taxes.
If Twitch is your ‘side hustle’ and you work a full-time job, you’ll still have to pay tax on that too. When you lodge your tax return, both streams of income get joined together and taxed at your marginal income tax rate.
If you’re intending to run your channel as a business, it’s a good idea to get an ABN. If you want to register your business, you must get one.
However, you’re not required to get an ABN if you earn less than $75,000 a year from your business. But without an ABN, you cannot claim GST back from the business-related purchases you make.
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.