Plenty of Australians earn a bit on the side from posting online, reselling, or promoting products. This week the ATO warned that many of them are probably running a business for tax purposes without realising it.

What the ATO said

According to a report published on 21 October, an ATO Assistant Commissioner said creators who are paid in cash, products or experiences are likely to be carrying on a business. The ATO says it can spot undeclared income through data matching with platforms, its lifestyle assets program and tip-offs from the community. The report quotes the line "free doesn't mean tax free".

The ATO has also added creator content to its "Essentials to strengthen your small business" tool. It covers when an online presence becomes a business, what income to declare and what happens if you miss your obligations.

A draft ruling is out for comment

The ATO has opened consultation on a draft ruling that sets out indicators for deciding whether an individual is carrying on a business. The same report says consultation closes on 27 November 2026. It is only a draft, so the final wording may change, but it is a useful sign of how the ATO thinks about regular, organised income-earning activity.

What to do if this sounds like you

  • List every source of income. The report mentions advertising and platform payments, sponsorships, affiliate income, tips, subscriptions and free products or services received for promotion.
  • Put a value on gifts. Free products and experiences count even though no cash changes hands, so keep a record of what you received and when.
  • Watch the GST threshold. The ATO says creators need to register for GST when their GST turnover reaches $75,000 in a 12 month period. Non-cash payments count towards that figure.
  • Keep records from day one. Save invoices, platform statements and receipts for related costs, so you can claim legitimate expenses and show what you earned.
  • Ask early. If your side income is growing, talk to your accountant about whether you need an ABN, how to report the income and what you can deduct.

The same thinking applies to anyone with a regular side income, such as reselling, tutoring or freelancing. If it is repeated, organised and aimed at making a profit, the ATO may see it as a business.